British-owned metals firm GFG Alliance is seeking a partner willing to invest in its Australian Tahmoor coking coal mine, reversing plans to sell the site and pay down debts at its Whyalla steelworks in South Australia (SA).
GFG will continue to support and develop the 3mn t/yr Tahmoor mine after the capital raise, the company said on 27 February. GFG paused operations at the mine on 7 February for a month, announcing plans to restart operations at the mine in early March. The company has not revealed any change to its Tahmoor restart timeline.
The Tahmoor mine had been providing financial aid to GFG's 1.2mn t/yr Whyalla steelworks until SA's state government took control of the steel plant on 19 February, placing it into administration.
GFG closed Whyalla throughout much of 2024, over blast furnace issues. The plant, which the company ran through a subsidiary, owes creditors millions of dollars.
Australia's federal government has partnered with the SA government to prop up the site through a A$2.4bn ($1.49bn) support package, including a wage guarantee to staff at the steelworks. Both governments are committed to eventually reopening the plant.
Argus' metallurgical coal premium hard low-vol fob Australia price has been declining over the last quarter, falling from $200.30/t on 27 November to $187.90/t on 27 February, when Argus last assessed it.
