An under threat smelting plant has been sold by mining firm Rio Tinto in a £330m deal, securing 150 jobs.

On Wednesday, energy and metals group the GFG Alliance announced it was acquiring the plant and associated hydro-power scheme near Fort William in the Highlands.

Two of the alliance's firms, Simec and Liberty House, are behind the move at the Lochaber site.

Last month, Rio Tinto said it was in talks with a potential buyer having begun a review of its operations in January.

Liberty House, which bought over two mothballed Tata Steel sites in Lanarkshire earlier this year, said it will be "integrating the smelters" with the group's engineering and manufacturing activity across Scotland.

The transaction is due to be completed in the next four weeks, while GFG Alliance said the £330m to secure the site has been acquired through a "mixture of equity and funds raised through a securitisation programme".

Sanjeev Gupta, executive chairman of Liberty House, said: "This transaction fits very well with our vision to develop a sustainable and competitive metals industry in the UK as a key part of our global industrial business.

"This is a natural next step for us in our Scottish investment programme and is a springboard for wider manufacturing growth, creating many more jobs in Scotland.

"We are immensely grateful for the continuing support of the Scottish Government and for their far-sighted approach to industry."

The new owners said the purchase of the facility is being "backed by the Scottish Government through a variety of business support mechanisms", including through "support for a Liberty contract to purchase power from the hydro-electric plants."

Under the deal, Rio Tinto is selling off the hydro plants at Lochaber and neighbouring Kinlochleven, the Lochaber aluminium smelter and 100,000-acre estate hosting the water catchment area, which spreads to the foothills of Ben Nevis.

Chief executive of Simec Jay Hambro stated: "This is a significant boost to our renewables portfolio and will be another major step towards reducing our carbon footprint in metals production.

"We are looking forward to working with Rio Tinto over the coming weeks to complete this strategically important transaction. This is a very exciting acquisition opportunity for us and we have big ambitions for this site and for the development of green energy across the UK."

Fergus Ewing, cabinet secretary for rural economy and connectivity, welcomed news of the deal.

He said: "I am delighted at this news from Rio Tinto today. The sale of both the smelter and hydro power station increases the chance of the site having a viable, long-term future. This is great news for the whole local community and especially for the workers at the smelter.

"Subject to all necessary agreed processes, the deal implemented will safeguard 150 jobs and has the potential to create hundreds more. I want to thank Rio Tinto for their positive engagement with Ministers and officials throughout the process and I will be sorry to see the company move out of Scotland after such a long association."