GFG's Whyalla Operations Secured
GFG Alliance has announced that it has secured financing to ensure the future of its Whyalla operations. GFG confirmed the agreement in a statement this afternoon:
GFG Alliance is pleased to announce that LIBERTY Primary Metals Australia has agreed terms to refinance its Greensill exposure.
The new financing is sufficient to pay out its Greensill debt in full and to provide on-going working capital for the LPMA group, which includes the integrated mining and primary steel business at Whyalla and its coking coal mine at Tahmoor.
The offer is subject to customary conditions precedent and documentation, a process which has commenced and is expected to complete within 4 weeks.
GFG Alliance is in continuous discussions with multiple financiers on a competitive basis for various parts of its business and is committed to securing sustainable funding solutions to replace funding provided by Greensill.
City of Whyalla Mayor Clare McLaughlin said the announcement was fantastic news for the city.
“Our community has continued to support and have confidence in the future of GFG Alliance’s Whyalla operations,” Ms McLaughlin said.
“The local GFG team has done an outstanding job to turn the operations around in the past few years and they should be extremely proud of their efforts – that’s clearly played a key role in GFG being able to source this alternative funding.
“We have regularly stated that Whyalla would emerge from this period of speculation stronger and ready to capitalise on the exciting opportunities ahead, so we trust that this announcement will help turn the negative speculation into optimism for our future.”
The State Government has also welcomed the announcement, with Premier of South Australia Steven Marshall stating this was an important day for the Whyalla community and hard-working people at the Whyalla Steelworks.
“The workers of Whyalla deserve enormous credit for the recent, much improved performance of the Whyalla Steelworks, which has contributed to this refinancing
“Our Government remains a steadfast supporter of the people of Whyalla, the local Council and of course the steelworks and the Middleback Ranges mining operations.
“The South Australian and Federal governments have worked closely together to give potential financiers the confidence to back Whyalla.
“GFG Alliance Executive Chairman, Sanjeev Gupta, has often told me he regards Whyalla as his ‘spiritual home’ and I am sure his faith in the future of the city and the steelworks has driven his determination to seek this second re-financing of the operations.
“This is the outcome all South Australians were hoping for and I look forward to the Whyalla Steelworks continuing its transformation as a key employer in Whyalla and the Iron Triangle,” Premier Marshall concluded.