South32 to sell manganese alloy smelter TEMCO to GFG Alliance
2020-08-13 11:38:48 [Print]
Australian diversified miner South 32 Ltd. said on Thursday it would sell its entire stake in manganese alloy smelter Tasmanian Electro Metallurgical Company (TEMCO) to UK-based conglomerate GFG Alliance.
GFG Alliance will acquire 100% of the shares in TEMCO for a nominal amount once approval is received from Australia's foreign investment review board, South 32 said in a statement, but did not elaborate on the financial details.
South32, the world's largest producer of manganese ore, had been looking at selling or closing TEMCO, as falling prices of manganese due to the COVID-19 crisis had lowered the smelter's economic viability.
The miner in July had forecast an impairment charge of about $109 million in its full year 2020 financial results in consideration of its continuing review of its TEMCO and Metalloys smelters.
TEMCO, located in Bell Bay, Tasmania, is run by the Samancor Manganese Joint Venture (JV), which is owned 60% by South32 and 40% by Anglo American Plc.
As a condition to the completion of the transaction, TEMCO and the Samancor Manganese JV entered into an agreement for the JV to supply ore to the smelter.
The disposal transaction does not include the Samancor Manganese JV's South African manganese alloy smelter, Metalloys, which has separately been placed under care and maintenance, South32 said.
GFG Alliance will acquire 100% of the shares in TEMCO for a nominal amount once approval is received from Australia's foreign investment review board, South 32 said in a statement, but did not elaborate on the financial details.
South32, the world's largest producer of manganese ore, had been looking at selling or closing TEMCO, as falling prices of manganese due to the COVID-19 crisis had lowered the smelter's economic viability.
The miner in July had forecast an impairment charge of about $109 million in its full year 2020 financial results in consideration of its continuing review of its TEMCO and Metalloys smelters.
TEMCO, located in Bell Bay, Tasmania, is run by the Samancor Manganese Joint Venture (JV), which is owned 60% by South32 and 40% by Anglo American Plc.
As a condition to the completion of the transaction, TEMCO and the Samancor Manganese JV entered into an agreement for the JV to supply ore to the smelter.
The disposal transaction does not include the Samancor Manganese JV's South African manganese alloy smelter, Metalloys, which has separately been placed under care and maintenance, South32 said.
Silico-manganese 65/17 EXW China
Unit:RMB/mt
China silicomanganese producers' inventory to production ratio statistics by province by month
Unit: %
