SIMEC Mining’s Whyalla Port could soon become a hive of activity as third parties continue to join the facility, with OZ Minerals the first to sign a long‐term port services contract.
After entering a competitive tender process, the SIMEC facility has been chosen as the preferred location through which to ship copper concentrate from OZ Minerals’ new Carrapateena mine.
SIMEC Mining Executive Managing Director, Matt Reed, said the three‐year contract was the first major deal the business had secured.“We’ve stated for some time that our port is open business, and the last few years have demonstrated that through the number and variety of trials we’ve undertaken,” Mr Reed said.
“To take that to the next level and secure an ongoing contract is testament to our increased capability; and an exciting step in the evolution of the Whyalla Port.”
The contract sees secure containers of copper concentrate trucked from the mine – located about 165 kilometres north of Port Augusta – to the Whyalla Port for consolidation.
The concentrate is then shipped out in 5‐10kt cargoes, with annual shipments gradually increased in conjunction with the ramp‐up of the mine.
Strict environmental controls are in place – including sprays to manage dust – with the State Government and EPA consulted and engaged prior to providing the necessary approvals.
Visit the SIMEC website to read the full media release
ALVANCE, owner of the Poitou iron foundry and member of the GFG Alliance, will set up a working group to study the possibilities of repurposing the Poitou iron foundry. ALVANCE will invite industry experts, political stakeholders and trade union representatives to participate in the group whose task will be to identify the potential for conversion of the foundry in order to move the company forward and avoid its closure.
Since its acquisition in 2019, the foundry has suffered from a steady decline in orders from its main customer, which is itself facing a very difficult automotive market. The decline in the diesel car market and the Covid19 pandemic have had unpredictable repercussions on the sector in terms of duration and magnitude – the combined effect was a reduction of almost 75% in orders at the site.
Although discussions with the foundry’s customer are ongoing, the lack of visibility on future orders and the continuing poor outlook for diesel engines means that the company will not be able to continue in its current structure for more than three to four months.
It is in this context that ALVANCE has taken the decision to set up a working group bringing together experts from industry, local and national authorities and the foundry’s trade unions to study how the site could be converted to create new products for the evolving automotive sector and, in so doing, preserve the workforce as far as possible and the industrial skills and know-how they bring with them.
Sanjeev Gupta, Executive Chairman of GFG Alliance, said: “GFG Alliance has built a global business by taking on industrial sites that others have turned their backs on. We have done this because we believe in the value of the industry to society and the skills of the people who work at these sites. We believe that this industrial heritage must be preserved for the benefit of our generation and those to come. That’s why we are establishing this task force.
Visit the ALVANCE Aluminium Group website to read the full media release
The COVID-19 pandemic has had a significant, lasting impact on the economies of the countries in which GFG Alliance operates. The alliance today sets out both an accelerated investment programme and a productivity drive globally, targeting up to 30% overall efficiency gains, to adapt its businesses to the post-pandemic environment.
GFG Alliance reaffirms its commitment to develop environmentally sustainable GREENSTEEL, GREENALUMINIUM and to progress towards carbon neutrality, as a group, by 2030. The pandemic has underlined the need to modernise plants to make them more flexible and efficient, which goes hand in hand with investment in low-carbon technology for us.
As part of the group’s CN30 (carbon neutral by 2030) programme, the following investment plans are being prioritised across our three primary steel operations, for delivery over the next 3-5 years:
A direct reduced iron facility and two electric arc furnaces at LIBERTY Steel Galati in Romania, supported by the country’s Government, the national gas company, research and educational institutions Europe’s first hybrid furnace, blending electric arc and blast furnace steelmaking, at LIBERTY Steel Ostrava in the Czech Republic, allowing the business to use higher volumes of local steel scrap and emit less carbon dioxide Transformation of the Whyalla steelworks in Australia through a transition away from its blast furnace in due course, by investment in an electric arc furnace, a direct reduced iron facility and a new state-of-the-art rolling mill ALVANCE Aluminium and SIMEC Energy will announce updates on their investment plans separately.
In addition to accelerating the CN30 investment program, and in order to put our businesses on a firm economic footing, GFG is implementing an immediate global efficiency drive to help adjust to a new market environment.
As a result of the COVID-19 pandemic, demand from steel consuming sectors in certain regions has dropped by between 20% and 40% – an impact which is likely to continue for 12 to 18 months, compounding an already challenging market. The market for aluminium globally has been impacted, too, with inventories climbing.
GFG aims to deliver up to 30% in overall efficiency gains through the following steps:
Overhead optimisation: A comprehensive review of corporate overheads is underway with a view to reducing costs and enshrining new working practices. This will include reviewing office space usage, implementing greater use of digital tools, reviewing travel policies and introducing flexible working. Efficiency and productivity programs: Many GFG businesses have already put continuous improvement programs in place, seeking multiple detailed initiatives to increase yields and improve operational performance. Dedicated review teams will be set up, supervised directly by senior management including Executive Chairman Sanjeev Gupta to optimise operations globally based on new market conditions. Headcount reduction: GFG Alliance businesses are adjusting to lower levels of demand. With regret, this will mean we cannot avoid a reduction in roles in certain locations. We will explore and exhaust all options to minimise the impact on our people, including natural attrition and redeployment with support from GFG Workforce Solutions. Sanjeev Gupta, Executive Chairman, GFG Alliance, said: “The COVID-19 pandemic has impacted every one of the 35,000 people who work across our businesses. The crisis has prompted us to think differently about how our businesses are organised, how we will work in the future and how we best allocate our resources.
“We have a very ambitious investment programme to achieve our GREENSTEEL, GREENALUMINIUM and carbon neutral ambitions, but there will be difficult decisions in the short term as we seek to make efficiency gains to respond to the challenged market conditions brought about by this crisis. I deeply regret that this will necessitate a reduction in roles in certain cases.
“While our primary focus will be on operational improvements and overhead optimisation, where we are forced to make reductions in roles, we will consult closely with employees, and will do everything possible to mitigate the impact. Through our Workforce Solutions initiative, we will strive to provide every blue collar worker impacted with an employment offer as an alternative to voluntary redundancy.”
“I am determined that the steps we take now will make us an even stronger group. Our focus on sustainable steel, aluminium and metals production, and on developing sources of renewable energy, is stronger than ever.”
GFG Alliance sites will begin implementing local plans over the next three months.
Plans revealed for a Direct Reduced Iron facility, and a new Electric Arc Furnace in addition to the heavy-section combination Rolling Mill previously announced to serve Australia’s rail, mining and infrastructure projects with domestic GREENSTEEL.
Will position Whyalla to become a world-leading, carbon-neutral steel producer, utilising South Australia’s abundant magnetite resources and Natural Gas, transitioning in time to green hydrogen produced from renewable energy.
GFG has established an expert global team to review Whyalla Steelworks’ current performance and to identify and implement improvement opportunities.
GFG Alliance (GFG) has today announced its updated Whyalla GREENSTEEL Transformation Plan in a major milestone for the business, as it seeks to secure the long-term future of its South Australian based steelworks.
This investment blueprint builds on previously-announced plans for a new Rolling Mill to be built by Danieli Group, Italy. Today’s announcement reveals further plans for a sophisticated Electric Arc Furnace (EAF) – utilising cutting edge technology for energy optimisation – and a Direct Reduced Iron (DRI) facility to produce low-emission GREENSTEEL from GFG’s abundant South Australian magnetite resource and domestic steel scrap.
The new DRI plant will be fed by Natural Gas, in time transitioning to green hydrogen produced from GFG’s own renewable energy projects including Cultana – one of Australia’s largest solar farms being built in Whyalla. Combined, these new facilities will produce advanced steel long products for the Australian construction, critical infrastructure and mining industries for generations to come.
While there is an exciting future ahead, Whyalla’s legacy primary steel making facilities remain financially challenged. To this end, leveraging GFG’s international operations, an expert team has been assembled with a three-month mandate to identify and implement major cost reductions and efficiency improvements. GFG’s recently-announced global CEO for primary steelmaking and integrated mining, Mr Paramjit Kahlon, will take direct responsibility for the review, working closely with GFG’s Executive Chairman, Sanjeev Gupta, in leading this critical activity. Stakeholders will be invited to participate and provide valuable insights and recommendations.
The review, which will conclude in September, will build on initiatives already in place, including the first wins at Whyalla’s aged Rolling Mill hitting a record production of 40,000 metric tonnes in May. The international members of the review team are already utilising communication technologies, engaging key stakeholders remotely until such time as arrangements can be made for them to travel to Whyalla given the current COVID-19 constraints. GFG has also put in place extra funding arrangements to ease pressure on the challenged business while the review undertakes the turnaround to identify savings and efficiency gains.
Commenting on GFG’s GREENSTEEL Transformation plan, Mr Gupta said:
“This exciting plan will not only transform the Whyalla business into an internationally-competitive steel manufacturer, it will be our first primary steel plant to be transformed to GREENSTEEL, helping fulfil our ambition to become the world’s largest carbon-neutral steel producer by 2030.”
“I believe in domestic manufacturing in Australia using its abundance of natural resources. South Australia, in particular, has one of the largest deposits of magnetite ore, and some of the best conditions for renewable energy. These are the key ingredients needed for GREENSTEEL which enable this exciting venture. We will more than double the value-added steel products we make with our new plant, capturing the growing infrastructure requirements of Australia, which are currently being covered by imports.
“We have to-date invested over $60 million in the engineering and design work for this project and are now ready to take the next steps of finalising funding and commencing construction. We plan to start construction later this year for the mill, and next year in 2021 for the EAF and DRI facilities. With this, the Whyalla Transformation Project will finally become a reality.”
Commenting on GFG investments in Whyalla and plans to undertake a three-month review, Mr Gupta said:
“Since buying the business out of administration in 2017, we have made significant investments in the Whyalla operations, completed much-needed maintenance – after years of under-investment by previous ownership – and introduced a comprehensive continuous improvement program thanks to the hard work of our employees.
“Despite the substantial improvements that have been achieved, the existing Whyalla facility – especially when faced with the additional impact from COVID-19 – remains financially-challenged.
“I am committed to taking a direct and personal role with the review team. Our global experts have experience in returning similar assets to financial viability in difficult conditions, and I am confident that with the cooperation of all our stakeholders, the existing Whyalla steel making operations will continue to operate during the three-year transition period while the new GREENSTEEL plant is built.”
Commenting on GFG’s commitment to its workforce, local community and suppliers, Mr Gupta said:
“It is important that we all embrace change as we drive towards financial viability of our current operations, in-turn enabling our long-term vision of a sustainable, world-class, carbon-neutral steelworks at Whyalla, supported by a vibrant and growing community,” he said.
“Finalising the funding and the ultimate construction of the Transformation Project, while ensuring the immediate financial viability of the operations, will enable GFG’s vision of a revitalised, world-class Whyalla operation to become a reality.
“With the continued hard work and commitment of all our employees and stakeholders, I remain confident that we will be successful in our mutual goal of creating an exciting and vibrant future for generations to come.”
About GFG Alliance
GFG Alliance is a collection of global businesses and investments owned by Sanjeev Gupta and his family. The Alliance is structured into three core industrial pillars; LIBERTY Steel Group, ALVANCE Aluminium Group and SIMEC Energy Group, independent of each other yet united through shared values and a purpose to create a sustainable future for industry and society. GFG Alliance employees 35,000 people, across 10 countries and has revenues of USD $20bn. GFG Alliance is a leader in sustainable industry with a mission to become Carbon Neutral by 2030.
GFG ALLIANCE appoints key directors to lead financial services offering in France.
Sanjeev Gupta’s GFG Alliance, has announced the creation of a French team to lead its financial services offering to drive the group’s M&A and investment banking activities in France and across Europe.
The French branch of GFG Alliance’s financial services arm will be led by Jean-Noël Hénon and Philip Vivier, who join the business from RiverRock, as joint Managing Directors of Investment Banking for the new office. Jean-Noël and Philip were key advisors to GFG in their former roles at RiverRock and will build on their already extensive knowledge of the group, extending its M&A capabilities and developing its offerings as an advisory financial services provider.
Both MDs have extensive investment banking and financial advisory experience – Jean-Noël has previously held senior posts at Arthur Andersen, Citigroup, Bank of America Merrill Lynch and Santander while Philip has run his own financial consultancy since 2012, and formerly held senior roles at Lazard’s and Bank of America Merrill Lynch.
Jean-Noël and Philip will pursue, analyze and advise on investment banking matters involving companies within GFG Alliance including M&A transactions for the Alliance across Europe, supporting any development plans in France and supporting GFG’s interactions with the French Government and local authorities around its ambitious expansion plans.
The team will also manage and develop the relationships with French banks and leading debt providers to support planned M&A transactions, equity and working capital facilities. The pair will be based out of GFG Alliance’s Paris office which is already headquarters to the group’s global aluminium business ALVANCE, which owns and operates the Dunkerque aluminium smelter and downstream facilities in France.
Jean-Noël Hénon said: “GFG Alliance has seen enormous growth in France since its first acquisition here in 2018 and I’m hugely excited to be joining the business at this time and to be given the chance to drive the group’s investment banking work in France and into Europe. These are challenging times for the industry and for markets internationally but there will be opportunities ahead and I’m very much looking forward to helping the Alliance capitalise on them for the benefit of its many businesses and the thousands of workers that work within them.”
Philip Vivier said: “GFG Alliance is an uncommon organisation whose ethos of investing in the heavy industries many western countries have turned their backs on makes it both an exciting and rewarding prospect from an M&A perspective. Its commitments to environmental and social sustainability are now, more than ever, considerations for both stakeholders and investors alike and so we’re relishing the chance to help take that vision to the market.”
Jay Hambro, Chief Investment Officer of GFG Alliance said: “I am delighted to welcome Jean-Noël and Philip to our expanding team and can think of no-one better to lead our operations in France which continues to be a key market for us across all GFG activities. Their experience and expertise will bolster our capacity to identify and capitalise on new M&A opportunities and underpin our international development as a financial services provider.”
GFG Alliance’s financial services sit within a family office structure and are managed separately from GFG Alliance’s three industrial pillars; LIBERTY Steel Group, ALVANCE Aluminium Group and SIMEC Energy Group. Combined GFG Alliance has revenues of $20bn USD and employees 35,000 people across 30 countries.
The health and well-being of our people remains a top priority as we manage the impact of COVID-19 on our business. We are taking all necessary steps in accordance with WHO and government advice in the countries where we have operations to protect our people.
With great sadness, GFG Alliance announces that Neil Barrell, Chief Operating Officer, tragically passed away last week in a loss which has been felt across the group.
Sanjeev Gupta launches global fire relief appeal to support bush fire affected people and recovery across Australia
Mr Gupta has pledged to match eligible donations from GFG Alliance employees and encourages business partners and customers from around the world to donate to a bushfire relief charity.
GFG Alliance Executive Chairman, Sanjeev Gupta is rallying the global GFG Family of employees, business partners and customers to give generously in response to Australia’s bushfire crisis.
Mr Gupta personally donated $250,000 to the Wollondilly Mayoral Fund South West of Sydney to assist in the rebuild in December, and during his Christmas message committed to matching the total raised by his 35,000 employees in 35 countries around the globe.
On Christmas Eve, Mr Gupta and his wife visited the bushfire affected towns of Bargo and Tahmoor in the Wollondilly Shire south of Sydney, seeing firsthand the devastating impact of Australia’s bushfires. One of GFG Alliance’s businesses, the SIMEC Coking Coal Mine located south of Tahmoor, was impacted by recent fires however lost no critical infrastructure.
“It was a sobering moment to witness the aftermath of the fires and their impact on local communities but in a display of true human spirit everyone came together to support emergency services and to help those who lost their homes and property,” Mr Gupta said.
“Our iron ore operations in the Middleback Ranges near Whyalla in South Australia were also impacted by fires. Thankfully, everyone was safe, and no critical infrastructure was lost.
“I can’t thank the emergency services teams enough for their tremendous work under extreme conditions as well as local volunteers supporting the bushfire efforts.
“Australians are facing a very difficult time with fires burning relentlessly across the country which has captured the attention of the world. I have been contacted by a number of our people from across our businesses wanting to support affected colleagues and their communities. Their generosity motivated me to launch this appeal. Australia is very special to me and my family, and I want to do what I can to help,” Mr Gupta said.
The GFG Family as well as business partners and customers are invited to contribute to the Bushfire Appeal by donating to any registered Australian charity supporting the bushfire response.
Mr Gupta said he will personally match the funding that the GFG employee group raises. The additional money matched by Mr Gupta will be personally donated to and managed by the GFG Foundation, which will work directly with leading charities and on-the-ground community organisations in bushfire affected areas to assist those in need.
“I want to make sure the money gets to where it is needed. The funds will be disbursed by the GFG Foundation to relevant charities and organisations that are working closely with affected communities where we operate and directly impacted by the fires, ensuring support for families, small businesses, disadvantaged individuals and young people who are most in need to help them get back on their feet as soon as possible.”
“Importantly, the GFG Foundation will do what it can to prioritise the needs of Fire Service volunteers who have been impacted by the fires,” Mr Gupta said.
To be eligible for Sanjeev’s donation matching:
An employee donation must have been made to a registered Australian Charity that is specifically supporting the current bushfire crisis.
Only donations from current GFG employees, are eligible
Proof of donation showing the eligible charity, amount and date of donation must be provided and submitted to the GFG Foundation through their website.
For more information on eligible registered Australian charities please visit the National Bushfire Recovery Agency which has a list of charities with bushfire appeals: https://pmc.gov.au/registered-bushfire-charities
SIMEC Mining, a member of the GFG Alliance, today thanked local emergency services particularly the NSW Rural Fire Service who were critical in defending the towns of Tahmoor and Bargo including the SIMEC Mining Coking Coal Mine from recent bushfires.
The mine provides jobs for over 400 people with around half living in the area.
GFG Alliance Executive Chairman Sanjeev Gupta visited the site today to survey the damage and offer his support to the local team.
“I was receiving constant updates from the team about the hard work that went into fighting the catastrophic conditions last week.
“It is one thing to see the reports of fires on the news, but another to have our own people on the frontline. I want to personally thank the crews that were here.
“While the initial threat is over, we must refocus on rebuilding. So as part of our commitment to the Wollondilly area, I am donating $250,000 to the Mayoral Relief Community Fund.
The Fund is being administered by an independent committee for the reconstruction of these towns. The Fund will be made available to local families and businesses directly impacted by the fires ensuring they get back on their feet as soon as possible.
“Importantly, this fund will also be available to any RFS volunteer who has been impacted by the fires in the area.
“We have been part of the community for over 40 years and will be for many more years to come. We hope this contribution can make a small difference as the community rebuilds,” Mr Gupta said.
General Manager of the site, Peter Vale said he was incredibly grateful for the heroics of the local crews.
“The fire came up very quickly on Thursday and we had no choice but to evacuate the site on the direction of the local fire service.
“Thanks to the hard work of emergency services, no critical infrastructure was lost. We are currently working to resume full operations.
