Glencore said in a statement that the sale, to GFG’s mining division SIMEC Mining, was subject to approval from the NSW government and was expected to complete in Q1 2018.
“It will be business as usual until then,” it said.
The deal will provide the Whyalla steelworks GFG bought out of administration last year with coking coal.
“The acquisition of the Tahmoor mine is an exciting step forward in our stated strategy to create a fully-integrated, end-to-end businesses in Australia, from raw materials and energy right through to high-value finished products ready for market,” Gupta said.
“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.”
The Tahmoor mine last year produced nearly 1.8 million tonnes of saleable coking coal and employed about 340 people including contractors from the Southern Highlands.
“Our Tahmoor mine is an established, stable operation but has minimal operational synergies with the rest of our NSW coal business located in the Hunter Region,” Glencore said.
“In August 2016, we announced that we would not continue mining beyond 2018 on the basis that ongoing operations would not meet our internal investment criteria.
“However, given the increase in coking coal prices, we have recently recommenced development for additional longwalls blocks in the North West area.”