The Tasmanian government has appointed receivers and managers to protect the manganese ore stockpile paid for by taxpayers at the Liberty Bell Bay smelter in the state’s north.
Liberty Bell Bay is Australia’s only manganese alloy smelter.
It was given a $20 million loan from the state government in August, $14.5 million of which was used to buy one 23,000-tonne shipment of ore which was delivered in October.
Despite this, operations at the troubled smelter have not resumed, after being paused indefinitely in May last year, with the company blaming ore supply issues and global price volatility.
The smelter was bought in 2020 by international company GFG Alliance, which is headed by British businessman Sanjeev Gupta.
Liberty Bell Bay operates a manganese alloy smelter in northern Tasmania. (ABC News: Owain Stia-James)
Minister for Business, Industry and Resources Felix Ellis said the move had been made following ongoing defaults under the state’s loan agreement.
“Unfortunately, GFG has not delivered on its promises to Tasmanians and to its workers to restart operations, and the loan [has] not been repaid,”
he said.
“By securing the ore and not moving immediately to sell it, the government is maintaining options and providing opportunity for Liberty Bell Bay and interested parties to continue discussions about potential future operations at the site.
“We have engaged extensively with Liberty’s owners over recent months, including on potential future pathways for the business.
The smelter, near George Town, is the only one in Australia that can process manganese alloy, used in steel-making. (Supplied: Liberty Steel Group)
“The state must act responsibly to protect public funds and ensure its secured position is maintained.”
The Tasmanian government said it remained open to working with Liberty Bell Bay.
Liberty Bell Bay has been contacted for comment.
Suppliers left unpaid, some considering closure as a result
The chief executive of the Bell Bay Advanced Manufacturing Zone, Susie Bower, said at least five businesses were collectively owed $1.3 million by Liberty Bell Bay.
“We have been working with suppliers for quite some time, since October last year,” she said.
Some suppliers are still waiting on payments from Liberty Bell Bay. (ABC News: Kate Nickels)
“We found out last week that four [staff] have had to be let go from one business, and another business keeps ringing me every week saying: ‘What is happening Susie? I may have to close my business.'”
“This has quite significant ramifications with Liberty’s non-payment of our suppliers.
“Liberty really do now need to step up and actually tell us what the future of this site will hold.”
Ms Bower said some businesses have not been paid since December.
“After December those payments have all stopped,” she said.
“They are on a knife’s edge.”