Media Type: Archive

On the back of completing a successful concept study, today Sanjeev Gupta’s GFG Alliance has committed to spending $1.7m on pre-feasibility studies for its Middleback Range Pumped Hydro Project.

Targeted for ultimate delivery in 2022, this project’s critical next step should take 6 months to complete and will include high level designs, engineering studies, network studies, geotechnical investigation, market modelling and commercial evaluation.

The pre-feasibility studies will be conducted by local South Australian company SIMEC ZEN Energy, which became part of the GFG Alliance in September 2017. The project forms part of SIMEC ZEN Energy’s strategic plan to establish 1 Gigawatt of additional dispatchable renewable energy generation in South Australia, which will provide access to lower cost, reliable, and low emission energy for both GFG’s own steelworks at Whyalla and other industrial and commercial users across Australia.

The Middleback Range Pumped Hydro Project represents a new approach to increasing Australia’s energy security by converting a depleted iron ore pit into energy infrastructure. Based on current estimates of potential size, its 90MW, four hour storage technology is estimated to represent a $170m investment in South Australia’s energy future.

The study costs are being partially supported by a $500,000 grant from the SA Government’s Renewable Technology Fund. The GFG Alliance is grateful for this funding which is speeding the way for Australia to reach a more economic, secure, reliable and sustainable electricity network.

With its unique industry focus integrating energy with mining,GFG Alliance is unlocking new value from legacy mining projects that can be passed on for the benefit of Australia’s future generations.

Commenting on this committment, Sanjeev Gupta, Executive Chairman of GFG Alliance said:

“The cost of solar and wind is rapidly declining globally with the evolution of technology and economies of scale. However, without a viable large-scale storage solution‎ this revolution is incomplete and unsustainable.

“Pumped hydro has the prospect of being a macro solution to power storage. We at GFG Alliance are very proud and excited to be playing a key role in the development of this breakthrough. Using the empty mining pits from our SIMEC Mining division in South Australia as reservoirs for storing hydro power, and the using the specific expertise of SIMEC ZEN Energy to develop this technology, we will balance power generated by our large-scale solar projects in Whyalla with dispatchable hydro power generated in the Middleback ranges.

“A dramatic reduction in power price is the most important ingredient needed for an industrial renaissance in Australia, which GFG is entirely committed to effecting. Solar and pumped hydro together is the combination that can achieve this. This can be a game changer for our highly energy intensive industries such as steel and aluminium”.

The GFG Alliance has welcomed the decision of the Highland Council South Area Planning Committee today (30th January) to grant full planning permission for a new 400-worker alloy wheel factory next to the Liberty British Aluminium smelter at Fort William.

The consent, which comes with a number of standard conditions, clears the way for the company to begin detailed design on the landmark project to develop the UK’s only large-scale alloy wheel plant, with work hopefully beginning on site later this year.

It is intended that the new plant – part of a £120m investment by GFG at Fort William – will use aluminium from the adjacent smelter to manufacture up to two million wheels a year for the British car industry, with production beginning in early 2020. The ambitious plans for the site will make Fort William a major centre for the automotive industry, supplying at least one fifth of all the wheels required by UK vehicle manufacturers.

Speaking after today’s decision, Sanjeev Gupta, Executive Chairman of the GFG Alliance which includes Liberty British Aluminium said: “We are delighted to have reached this milestone in the development of a very exciting project and are very grateful to the Council for giving this matter their close attention over recent months. We also appreciate very much, the valuable input of the many statutory bodies, other organisations and the local community, who have worked with us on the wide range of issues associated with this development, which will add major value to the Highland economy.”

“Our plans for Fort William will not only transform the economic prospects of the area but also create the UK’s only large-scale alloy wheel plant, a major step forward in Britain’s manufacturing capabilities. We plan to invest heavily in R&D to develop a world class product, made in the Scottish Highlands. We look forward to continuing to work with these bodies to fulfil the conditions set out in the planning consent and then to move ahead quickly with the building of the plant,” he added.

In addition to the skilled employment created at the wheel factory itself, GFG envisages that there will be hundreds more jobs generated in businesses supplying the plant and in the wider Highland economy.

Through the Lochaber Delivery Group, set up by GFG and the Scottish Government, a range of local and regional bodies are working together to address the issues – including housing, infrastructure and local services – associated with an industrial development on this scale. The new plant will be one of the biggest such projects of its kind in the Highlands for decades.

Sanjeev Gupta’s GFG Alliance today (10th January) marked the start of a major expansion into continental Europe by launching a €2billion investment programme in France.

As part of this programme, GFG’s industrial arm Liberty House has made a binding conditional offer to Rio Tinto to buy Europe’s largest aluminium smelter based in Dunkerque, France.

The offer triggers a statutory consultation with employees, European Works Council and stakeholders and, subject to a successful outcome to this process, Liberty says it has ambitious plans to invest and develop the 570-worker plant, potentially creating thousands more jobs on-site and in the wider economy.

In addition to serving existing customers with aluminium slab and ingots, Liberty wants to capitalise on the growing market for aluminium components among Europe’s vehicle manufacturers by working with stakeholders to develop downstream manufacturing activities linked to the smelter at Dunkerque.

It is estimated that the total aluminium content in European-made vehicles will rise from 3.3m to 4.3m tonnes a year by 2024 and that the global use of aluminium auto body sheet will more than double in the next 10 years. This is driven by the trend towards lighter-weight vehicles with a lower carbon footprint.

Today’s announcement follows recent confirmation that Liberty is engaged in a formal bidding process to acquire Asco Industries. Asco has steel mills and service centres at six locations across France, employing around 1,500 people. The Asco business is similar to Liberty’s Speciality Steel’s business in the UK, where the operation is a key supplier to the UK automotive and aerospace sectors and is a core part of GFG’s GREENSTEEL vision and long-term strategy. The company said it is attracted to invest heavily in France by the very pro-business environment being created by the Macron Government.

Referring to the Dunkerque agreement, executive chairman of the GFG Alliance, Sanjeev Gupta said: “Our detailed analysis leads us to believe that Dunkerque is the best location to drive forward our downstream automotive strategy. Aluminium Dunkerque has a high-quality aluminium operation benefitting from a top-class workforce and management. This will be our key strength when embarking on our ambitious plans. Subject to the outcome of the consultation process we look forward to welcoming the team and local community into the global GFG family on completion of the sale.”

Mr Gupta added: “We want to develop the plant into an international centre of aluminium and downstream aluminium products expertise, demonstrating our GREENALUMINIUM strategy. This investment will help fulfil our ambitions in the sector, further enabling us to capitalise fully on expected growth in demand for aluminium over the coming years.

“In 2016 we acquired Rio Tinto’s Scottish operations, working in partnership with the Scottish Government, where are now building a high-value-added automotive components plant. We look forward to building an equally productive partnership with the French Government.”

“This is GFG’s first significant step into continental Europe, which we will hope to build on. We are particularly attracted by the pro-business environment that President Macron’s France is quickly building. This has motivated our ambition to establish a global hub for the group in France, not only investing heavily in aluminium, steel and automotive but also bringing our other divisions including energy, banking and property development to explore opportunities in France and Europe, also complementing and supporting Dunkerque.”

Alf Barrios, Rio Tinto’s chief executive Aluminium said: “The binding offer for the sale of Aluminium Dunkerque represents the best option for the future development of the site while also delivering value for Rio Tinto as we continue to streamline our portfolio. Liberty House has a track record of investing in similar assets, which should secure a long-term sustainable future for Aluminium Dunkerque and continued economic benefit for the wider community.”

Liberty acquired Rio Tinto’s aluminium smelter at Lochaber in Scotland in December 2016 and is currently investing £120m to modernise and expand the plant, including the addition of an adjacent alloy wheels factory that will use primary aluminium made on site, creating around 400 direct jobs and a similar number in the supply chain and regional economy.

The binding offer for Aluminium Dunkerque triggers a sale process that includes statutory consultation with employees, relevant European works councils, stakeholders and partners. It is anticipated that the process will be completed, and the sale concluded during the second quarter of 2018.

The GFG Alliance is being advised by a group of firms led by Lazard

Sanjeev Gupta’s GFG Alliance announced today that its SIMEC Mining division had signed a binding agreement to acquire Glencore’s high-quality Tahmoor metallurgical coking coal mine in New South Wales.

The acquisition of the Tahmoor mine by the British Gupta family is a key element in the GFG Alliance’s transformation plan for its flagship Liberty OneSteel Whyalla Steelworks in South Australia that is designed to optimise and expand production, thereby securing its long term sustainability.

The Tahmoor mine, which has a workforce of 340, is a coking coal mining operation situated around 75km south west of Sydney. Annual production is currently around 2m tonnes per annum, the bulk of which is high-quality coking coal used for primary steel making in blast furnaces both in Australia and internationally.The Tahmoor mine is an important supplier of coking coal to the Whyalla Steelworks.

Commenting on the acquisition, Sanjeev Gupta, Executive Chairman of GFG Alliance said: “The acquisition of the Tahmoor mine is an exciting step forward in our stated strategy to create fully-integrated, end-to-end businesses in Australia, from raw materials and energy right through to high-value finished products ready for market. I very much look forward to welcoming the Tahmoor mine employees and surrounding community into our GFG family.”

“Through this purchase we secure and de-risk an important feed for the Whyalla Steelworks. This, together with our iron ore mines in South Australia, now makes GFG the only fully-integrated Australian steel producer, whether from iron ore and coking coal to primary steel, or from scrap metal and renewable energy to GREENSTEEL.”

Jay Hambro, GFG Alliance’s Chief Investment Officer and CEO SIMEC Mining added: “We believe Tahmoor is a high-value asset with an operation that has been well run and maintained by Glencore. Tahmoor coking coal is well known and regarded in the domestic and international markets for its grade and quality.

“The Tahmoor operation is another good fit within SIMEC’s global portfolio allowing vertical integration for the Whyalla Steelworks and flows to the broader GFG international network.”

Completion of the transaction is subject to customary conditions and is expected to occur in the first quarter of 2018.

The GFG Alliance today announced the final concept plan for the transformation (the “Transformation”) of the Whyalla operations. This follows significant and detailed work undertaken by GFG following the successful acquisition of the former Arrium Australia businesses on 1 September 2017.

The Transformation is expected to structurally improve the operational and financial performance of the Whyalla Steelworks (the “Steelworks”), thereby securing its long‐term sustainability, and includes a number of initiatives across the Mining operations.

The Transformation investments include:

• Reduction of ferrous feed costs for the Steelworks through investments in feed preconditioning, utilising latest technology;
• Improvements in energy efficiency at the Steelworks through investments in co‐generation and the capture of process off‐gases;
• Targeted modernisation and capacity upgrade investments across the Steelworks and the rolling mill utilising latest technology; and
• Investments to increase production at the Steelworks by approximately 50% to 1.5 million tonnes per annum, also widening the product offering of the Steelworks and opening up high margin domestic and export markets including the global operations of the GFG Alliance.

The Transformation is expected to significantly reduce the unit cost of steel production, ensuring the Steelworks can be competitive throughout the economic cycle.

GFG estimates that the capital cost of the Transformation to be approximately $1 billion. It is expected that this will be financed through a combination of funding sources, including GFG Alliance. The Transformation will also require support from the South Australian and Federal Governments. Any Government support will be conditional on both the South Australian and Federal Governments being satisfied that the Transformation will underpin the long‐term sustainable future of the operations.

Other investments are also targeted for the Mining operations, including investments to increase iron ore reserves and looking to further unlock large scale magnetite potential. The GFG Alliance also intends to explore development of the Whyalla Port towards a world scale multi‐user facility to support not only the Steelworks and Mining operations but further economic development across the Spencer Gulf.

The GFG Alliance will now proceed with feasibility studies which will continue through 2018. The cost of these studies will be partly funded from drawing on the previously announced $50m South Australian Government grant.

Commenting on the Transformation, the GFG Alliance’s Executive Chairman, Sanjeev Gupta, said,

“We have developed a comprehensive investment concept plan for the Whyalla Steelworks and Mining businesses that will deliver a step‐change in operational and financial performance, ensuring the long‐term sustainability of both the operations and the local community.”

“We are working productively with both governments and look forward to discussions continuing in the interests of all parties involved as we progress with our further studies.”

Looking further out, Mr Gupta said, ”we strongly believe that the transformation will also provide a solid basis for our broader vision of making Whyalla a centre of manufacturing excellence.

“Through large investments in renewable energy and key infrastructure projects, we believe we can make Whyalla an attractive global hub for innovative, energy‐intensive industry”.

Whyalla Mayor Lyn Breuer welcomed the announcement, which she said would not only transform GFG’s Whyalla operations, but also the entire community.

“We are incredibly excited to hear of the progress made by the GFG Alliance during their 100‐day review,” Ms Breuer said.

“The proposed transformation of the Steelworks – together with the development of the Mining business ‐ underpins the future for the Whyalla community. “GFG Alliance’s vision for the region has the full support of the community and we continue to give them – and the South Australian and Federal Governments – our complete support.”

SIMEC Energy, part of the global GFG Alliance has taken another major step towards becoming the UK’s largest provider of renewable energy by entering into an unconditional agreement to acquire Green Highland Renewables (“GHR”), one of the country’s most prominent ‘‘green power’’ developers and generators from Ancala Partners.

SIMEC Energy also announced today (Tuesday 5th December) its plans to build a total of one gigawatt of renewable power generation capacity in the UK within three years, supporting fellow GFG company Liberty Steel’s ambitious target to develop five million tonnes of low-carbon ‘‘GREENSTEEL’’ production in the UK within five years. Both objectives support the UK Government’s ‘‘clean growth’’ vision which is a key part of the newly-launched Industrial Strategy.

The acquisition of GHR will complete by the end of February 2018.

The purchase of GHR from Ancala Partners includes 18 hydro-electric power stations in the Scottish Highlands and a highly-regarded team of 17 engineers, operators and designers. GHR has a global track record of providing an end-to-end delivery of hydro-power schemes, ranging from initial planning through to building and operating projects of all sizes and complexities.

In addition to the 18 existing power stations in GHR, SIMEC said today it will develop a further eight hydro power plants on its Lochaber Highland estate lands, with the planning process due to start in 2018. SIMEC is already one of the UK’’s largest hydro power operators, including in its portfolio the Lochaber and Kinlochleven stations with a total capacity of over 100 megawatts.

GHR started in 2007 and its teams based in Perth and Dingwall have built a strong reputation for engineering expertise and close working with local communities living around hydro projects. To date the company has delivered over 45 hydro schemes internationally, many of which it continues to operate and maintain.

Jay Hambro, GFG Alliance chief investment officer and chief executive of SIMEC Energy said: “We are rising to the challenge of delivering one gigawatt green energy capacity to power UK industrial growth. That will double the size of SIMEC’’s existing portfolio. We are already one of the UK’’s largest producers of hydro power and, with this transaction, we will expand our hydro capacity even further.

“We are delighted to welcome the excellent Green Highland Renewables team to the GFG family. They enjoy an enviable track record in building and operating hydro power assets. Hydro is a crucial element of our renewable energy strategy and GHR is a world leader in developing and operating this technology. Whether building new assets in Scotland or helping our initiatives in Australia, they will provide the expertise and resource we need in hydro power.”

Sanjeev Gupta, Executive Chairman of GFG added “We are delighted to have agreed this deal at the same time as the publication of the UK Government’s white paper on industrial strategy because we intend to be a standard bearer for ‘clean growth’’ in the economy. That link between energy and industry has been at the heart of our own low-carbon GREENSTEEL strategy for years and we are greatly encouraged to see public policy moving in the same direction.”

Minister for Climate Change and Industry, Claire Perry said: “Through our modern Industrial Strategy, the government has set out a clear plan for reducing carbon emissions while driving economic growth. I am pleased that the GFG Alliance are developing their renewable power assets and building clean growth in their organisation.”

SIMEC is also currently consulting with local communities in the Highlands on a plan for a £170m wind farm at Glenshero which is designed to generate 164 MW of power. This project will be Britain’s first large scale subsidy free wind farm. A planning application for this development is due to be submitted in Spring 2018.

One of Britain’s largest industrial groups has announced plans to create a total of five million tonnes of low-carbon steelmaking capacity over the next five years as part of a drive to develop a green and competitive future for manufacturing in the UK. This equates to half of all the steel made in Britain at present.

The company said the plan would play an important role in delivering the vision for ‘clean growth’ outlined in the UK Government’s Industrial Strategy White Paper released today (27th November).

The GFG Alliance, which already employs 5,500 workers at its Liberty House UK steel and engineering plants, disclosed that, as part of its own GREENSTEEL strategy, it aims to recycle at home a large proportion of the 7.2m tonnes a year of scrap steel currently exported from the UK each year. This low-carbon secondary steel production would displace much of the 6.6m tonnes of raw steel currently imported into Britain each year.

At present the UK exports more of its scrap for processing abroad than any other developed economy and GFG says this abundant raw material – 10m tonnes a year rising to 20m within a decade – provides the country with a huge opportunity to drive clean growth by making low-carbon steel at home.
Liberty is already a leading producer of recycled steel, with melting capacity of 1.1m tonnes per year in the UK and 1.2m tonnes per year in Australia.

The announcement regarding major expansion of GREENSTEEL production followed the publication today (27th November) of the Government’s Industrial Strategy White Paper which pledged to pursue a path towards ‘clean growth.’

Jay Hambro, Chief Investment Officer of the GFG Alliance – which includes the Liberty House and SIMEC Energy – said: “The Government’s White Paper acknowledges clearly that green energy and industrial competitiveness go hand in hand and we welcome the document’s emphasis on clean growth. That link between energy and industry has been at the heart of our own GREENSTEEL strategy and we are greatly encouraged to see public policy going strongly in this direction. GREENSTEEL, made using renewable energy, has only one tenth of the carbon footprint of blast furnace production and should form a key part of the clean growth focus.”

He added: “Driverless and electric cars, as mentioned in the new industrial strategy are a great innovation and the quest for cleaner engines is also a step in the right direction. However, it is worth remembering that all cars will need steel, aluminium and composite materials whichever the engine or driver, so the focus of clean growth must capture this. As the UK’s largest primary aluminium producer and one of the largest steel and engineering groups, we are heavily involved in the new developments which will achieve these goals. We are on a constant drive to create clean growth and are delighted to see this highlighted today by Government.”

“We share the Government’s vision for a rejuvenated manufacturing base that is sustainable both economically and environmentally. In the years ahead, UK industry will be both green and competitive to support increases in productivity.” he said.

Residents and other stakeholders have been invited to two public events later this month (November) to learn more about plans for a Highland wind farm designed to deliver green energy to support many hundreds of industrial jobs in Scotland.

SIMEC Energy, which has brought the plan forward, also wants to get the input of local people around the Glenshero area as is develops its proposals for the 168MW scheme and prepares to submit a planning application early next year.

SIMEC, part of the GFG Alliance, says the wind farm, which will involve an investment estimated to be around £150m, will contribute low-cost, low-carbon energy for industrial developments across Scotland. SIMEC’s sister company Liberty British Aluminium is currently planning a new alloy wheels factory next door to its smelter at Fort William, which will create more than 400 jobs directly and hundreds more in the wider economy.

In addition, it is hoped the windfarm will contribute long-term clean power for the development of Liberty’s steel mills in Lanarkshire which roll the plate steel used in the manufacture of wind towers. The company is also hoping to set up a wind tower fabrication plant in Scotland.

During construction and the first year of operation, it is estimated that the Glenshero project will bring a minimum of £23m into the Highlands economy by generating work for local businesses.

Details of the plans for a wind farm of up to 40 turbines will be outlined by SIMEC Energy representatives during information events at Laggan Village Hall on Monday 20th November and Fort Augustus Village Hall on Tuesday 21st November. Both events will be open between 3pm and 7:30pm for visitors to drop in to see initial plans, hear briefings and share their views.

This will include information about the installation itself and how it will fit into its surroundings, and also details of opportunities for local communities to share in the ownership of the wind farm. In addition, representatives will explain an innovative scheme to enable homes, businesses and community facilities near the site to receive discounts on their electricity bills.

The meetings are part of an extensive consultation on the wind farm plan. The original proposal for 54 turbines has already been revised following preliminary discussions between GFG and statutory consultees and after initial site investigation work.

The wind farm at Glenshero is just one part of a wider GFG Alliance vision to develop the Lochaber estate lands for the benefit of the regional economy and communities. This includes enhancement and expansion of hydro-power, new recreational facilities, new and upgraded visitor accommodation, improved agriculture, forestry and fisheries, better access to the land and support for new local enterprises.

Duncan Mackison, chief executive of JAHAMA Highland Estates, the GFG division which manages and develops the estate lands, said: “We hope as many people as possible will come along to the public events at Laggan and Fort Augustus, so we can share details of these exciting proposals and hear local views. We’ve already had initial conversations with key stakeholders and these meetings are a valuable opportunity to take that to the next stage and involve local residents in the process of developing a scheme which promises to bring extensive benefits to the area.”

Global metals and industrials entrepreneur, Sanjeev Gupta, who has conducted an audacious drive to reverse the fortunes of the UK steel sector over the past two years, has been honoured as a ‘real innovator’ by the London Business School.

In the 2017 LBS ‘Real Innovation Awards’ announced last night (2nd November) the founder and executive chairman of the Liberty House Group and GFG Alliance was named as recipient of the ‘George Bernard Shaw Unreasonable Person’ accolade for his steadfast refusal to accept the conventional view that Britain’s metals industry was in terminal decline.

His citation acknowledged that he not only rescued and revived several major metals and engineering plants across the country, saving thousands of jobs, but has developed the ground-breaking ‘GREENSTEEL’ business model to make the industry competitive and sustainable both through largescale domestic scrap recycling, powered by renewable energy, and through strategic integration of metals with downstream manufacturing.

In the process he has turned what was largely an international commodities trading business with a few hundred staff into one of Britain’s largest private industrial employers with nearly 5,500 workers.

He has since exported this vision to Australia where the GFG Alliance recently acquired the country’s largest mining and steel business, taking the size of the group’s global workforce to more than 11,000.

The GFG leader’s London Business School accolade was one of 12 awards presented to individuals and companies deemed to have broken the mould in various ways in order to achieve business success.

At the awards ceremony, Professor Julian Birkinshaw, the school’s academic director of the Institute of Innovation and Entrepreneurship, said: “Innovation needs stubborn, even slightly unreasonable people who are prepared to challenge the existing order. It also needs good timing. Some great ideas come along before the market is ready for them, while others arrive too late. Sanjeev has chosen his time well and the results have been truly impressive.”

Accepting the award Mr Gupta said: “If it’s unreasonable to resist the collapse of a whole industry and the loss of thousands of jobs that can be saved by using a different business model, then I am very happy to accept the title of ‘unreasonable person’ and look forward to continuing in the same mode. Heavy industry in Britain has been suffering from slow decline for decades but we are showing that it can have a healthy, competitive and sustainable future.”

The awards were presented during a high-profile dinner at London Business School’s main campus in Sussex Place, London.

Further details of the ‘Real Innovation’ awards can be found on http://ow.ly/kg6f30gkshP

Representatives of the GFG Alliance will meet residents and stakeholders from around Fort William next week (Nov 2) to update them on plans for a 400-worker alloy wheels factory in the town.

Expert studies on the proposals are currently being finalised, and the company aims to share the findings with local people during an information day on Thursday (2^nd November) at the town’s Nevis Centre, prior to submitting a formal application to the Highland Council in November. The exhibition will be open from 2:30pm – 7:30pm.

Nearly 200 people turned up during an initial community consultation event held by the company at the nearby Ben Nevis Hotel in September, when details were first outlined for the factory, which is intended to use liquid aluminium from the Liberty British Aluminium smelter, owned by GFG at Fort William, to make around 2m alloy wheels a year for the UK car industry.

Brian King, managing director of Lochaber Operations for the GFG Alliance said: “We were very pleased by the size of the turnout for the first community consultation and very encouraged by the amount of local support there was for this proposal.

“We also had a valuable opportunity to listen to people’s comments on how we should take the plan forward and we’ve fed these to the team preparing the application for us,” he added.

Those attending next week’s event will be given more details on what the new plant will look like along with findings from the required environmental impact assessment including those relating to potential impact on transport, landscape, noise levels, air quality, ecology and cultural heritage and any mitigation measures, where these might be necessary.

There will be a further opportunity for the public to submit representations on the proposed development to The Highland Council once the planning application has been submitted.

It’s hoped a decision on the planning application can be made in Spring 2018 and, if it gets the green light, that production could start in Spring 2020.

PDF Download – Alloy Wheel Facility Public Consultation Boards