Future Secured
The future of GFG Alliance’s Whyalla operations is officially secure, with refinancing now finalised.
GFG confirmed this morning that it had agreed a debt restructuring with Credit Suisse Asset Management (CSAM) for LIBERTY Primary Metals Australia (LPMA) – which comprises its integrated mining and primary steel business at Whyalla and its coking coal mine at Tahmoor – following the collapse of its main lender Greensill in March.
City of Whyalla Mayor Clare McLaughlin said although expected, it was fantastic news to finally have confirmation of the much-needed refinancing.
“Whyalla has been right behind GFG and Mr Gupta throughout this entire period of speculation, as we were confident in the future of GFG’s local operations,” Ms McLaughlin said.
“We have reinforced that Whyalla will only continue to strengthen and is now perfectly poised to capitalise on the exciting opportunities ahead.
“This announcement should put an end to the ongoing negative speculation surrounding our city, allowing us to focus on the numerous new developments that will reshape our future, including the proposed green hydrogen projects; foreshore hotel; and redevelopment of our entire foreshore precinct.”
”This news will stimulate confidence in the private sector and may well open the doors to additional new investment in complementary projects that will drive the greening of heavy industry and energy production.”
The funding comes on the back of record-breaking performances for LPMA, which saw the business grow revenues from A$1.96bn in FY20 to A$2.52bn in FY21, with the forecast remaining strong due to its ongoing continuous improvement initiatives, underpinned by strong investment in infrastructure.
Mayor McLaughlin once again commended local employees for their outstanding effort throughout this period.
“The local GFG team has done an outstanding job to turn the operations around into a business that is now profitable, has strong forward sales and is setting regular production records. This would have given CSAM great confidence in its negotiations to finalise GFG’s ongoing funding,” she said.
GFG Alliance Executive Chairman Sanjeev Gupta said the deal provides a stable financial platform for the LPMA business.
“I care deeply about this community and remain committed to our long-term vision to transform Whyalla into a modern GREENSTEEL hub,” Mr Gupta said.
“I’d like to thank all our stakeholders – government, union representatives, customers, suppliers and of course our employees and the local community – for the support they’ve shown GFG Alliance as we managed our way through the challenges created by the Greensill collapse.”