GFG Alliance looks to raise capital for Australia coal mine
MELBOURNE - GFG Alliance, owned by embattled commodities tycoon Sanjeev Gupta, is looking to raise capital for development of a coking coal mine in Australia where its steelworks was last week put into administration by the South Australian state government.
Australian media had previously reported that GFG Alliance was looking to sell the coking coal mine for some $500-million as the privately held conglomerate sought funds to shore up the troubled Whyalla steelworks.
South Australia's premier put Whyalla into administration for unpaid bills on February 19 and said he wants to help develop lower carbon steel production in the state. GFG said at the time it was seeking advice on its options.
"The South Australian Government’s announcement ... opens up new opportunities for Tahmoor Colliery which has provided considerable financial aid to Whyalla and was previously being leveraged to rescue Whyalla," a GFG spokesperson told Reuters.
"GFG Alliance is continuing to look at a capital raise at Tahmoor to support the operations and growth of this tier one asset with our top priority reinvesting in the business."
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