Early Christmas Gifts For Tomago And Tahmoor

The Prime Minister, Anthony Albanese, has announced his government will partner with Tomago Aluminium and the NSW state government to ensure the aluminium smelter´s survival beyond 2028. In October, Tomago said its business would likely become unviable after its current energy contract expires in 2028, because the cost of any new contract would be too high. Tomago, which is majority owned by Rio Tinto, employs more than 1,000 people and produces almost 40% of Australia’s annual aluminium output. Mr Albanese visited the smelter, near Newcastle, on December 12 to make the announcement. “If Australia doesn’t produce aluminium, then the knock-on effect to other industries is significant,” the Prime Minister warned. The federal government said the deal, which has yet to be finalised, would involve securing a long-term, fixed-price energy supply for the smelter. The Federal Minister for Industry and Innovation, Tim Ayres, was also present. Without giving many details, he said: “There are benefits and costs for all of us in this process.” It was confirmed, however, that Tomago Aluminium would be required to contribute at least $1 billion in capital and major maintenance investment

over the next decade, including identifying decarbonisation opportunities. The smelter is the latest business to win support from the federal and state governments, which have made 2025 the year of the bailout. This has included: $2.4 billion for the Whyalla steel plant; $600 million for Glencore’s copper smelting and refining operations in Mount Isa and Townsville; and $135 million to rescue Nyrstar´s Port Pirie and Hobart enterprises. The rush to get the Tomago deal announced before Christmas perhaps accounts for its lack of detail. Either way, critics might say the fine line the federal and state governments run between wanting to support manufacturing and being seen as a soft touch for money – just got finer.

It appears Christmas has also come early for Tahmoor Coal in NSW. The colliery, which is 200km south-west of Sydney, was mothballed in February because it couldn´t pay suppliers. The 500-person workforce was sent home on pay, but half were subsequently given the sack. Tahmoor Coal is owned by Liberty Primary Metals Australia (LPMA), which itself went into administration in November. LPMA is one of the Australian arms of GFG Alliance, the group of companies owned by the British industrialist, Sanjeev Gupta, and his family. To the surprise of many, it was reported in early December that creditors to LPMA had agreed to let Mr Gupta resume control of LPMA, after some funds had become available. In theory, this will allow Mr Gupta to re-engage with Tahmoor´s management and potentially restart the operations. The funds in question – being $82.5 million – were lent to LPMA by Clydesdale Engineering, a UK company specialising in complex fabrications and engineered products for sectors including aerospace, defence, automotive and industrial markets. Now the catch. Clydesdale Engineering is a GFG Alliance company.

This news came as a local bid for Tahmoor Coal was in the final stages of development. When it was operational, Tamoor´s majority contractor had been RStar, which in recent weeks had been assembling a bid with GBA Capital. In describing the bid, RStar’s legal representative said: “RStar’s workforce is a contracted workforce that would remain, as would the existing workforce. Our proposal also carves off a piece of the pie for management to participate as equity owners.” It remains to be seen whether Mr Gupta can actually get money flowing into Tahmoor. There is also the significant issue of the NSW government still being owed almost $30 million in unpaid royalties. So, watch this space.

To Whyalla, where the global commodity supply group, M Resources, has become an alternative bidder for the steelworks and has announced its bid will include collaboration with the Hazer Group. Under a memorandum of understanding for the partnership, Hazer’s proprietary methane pyrolysis technology, in conjunction with KBR, has been incorporated into M Resources’ proposal for Whyalla. Hazer’s technology produces clean hydrogen and high-value graphite from methane, and would help in establishing a low-carbon emissions steel manufacturing precinct at Whyalla. In addition, Hazer graphite would be used in the electric arc furnace to produce steel.

Matt Latimore, M Resources, CEO, said: “We are very pleased to be collaborating with Hazer to incorporate their world-class methane pyrolysis technology into our Whyalla proposal. This technology further strengthens our bid for this unique asset by dramatically lowering the cost of low-carbon emissions steel production. We look forward to working with Hazer on this and other opportunities.”

Elsewhere, the familiar claim by tradesmen that “the job will be finished by Christmas” has proved to be true at InfraBuild´s Laverton facility with the installation of the meltshop´s new lower shell EAF bowl. A second bowl will be put into service in January. The bowls are part of a rotation system in which one is re-lined offline and exchanged with the operating bowl approximately every six weeks. InfraBuild´s CEO, Francisco Irazusta, said the investment supports the objective of increasing site production by 25% in the coming year to one million metric tonnes per annum (Mm/t). Meanwhile, studies in Sydney have commenced to determine the optimal path for it to also reach one Mm/t. InfraBuild’s circular steel making model uses EAF technology to recycle scrap metal and produce steel for Australian infrastructure and construction projects and other sectors. Scrap-based EAF technology emits approximately 70% lower CO2 emissions per tonne of steel than traditional blast furnace methods, according to data from the World Steel Association.

Finally, as 2025 draws to a close, one of ASN´s long-time advertisers will also be farewelled. Earlier this year, Australian Steel & Wire was purchased by Jennmar Australia. In a recent note to the industry, Jennmar said that Australian Steel & Wire will cease to exist from January 1 onwards and all its activities will be rolled into Jennmar Australia.

Australian Steel News wishes all its readers a Merry Christmas and a Happy New Year.

Resource: https://australiansteel.com/steel-market-summary-australia/