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Australia's only manganese smelter closure exposes geopolitical risks

From ABC Australia · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • Australia's only manganese alloy smelter, Liberty Bell Bay, has closed, increasing reliance on imported alloys.
  • The smelter halted operations in May last year due to supply issues and market volatility, despite government support.
  • The site faces significant rehabilitation liabilities, with closure costs potentially exceeding restart expenses.

Australia's sole manganese alloy smelter, Liberty Bell Bay, has ceased operations, leaving the nation more dependent on imported alloys crucial for steel production. The closure raises concerns about the site's future and Australia's industrial self-sufficiency.

The smelter, located north of Launceston, produced ferromanganese, a vital component for steel used in defense, construction, and mining. Operations paused in May last year amid difficulties securing ore supply and volatile market conditions. The Tasmanian government provided a $20 million loan in August to facilitate a manganese ore shipment, but the smelter never resumed production.

There may still be opportunities in the future for a smelter operator to control the site and bring it back into production.

— Felix EllisTasmanian Minister for Business, Industry and Resources Felix Ellis commenting on the potential future of the Liberty Bell Bay smelter site.

Uncertainty has loomed over the smelter's workers since operations halted. In January 2026, the former owner, GFG Alliance, defaulted on the state loan agreement. The Tasmanian government then appointed receivers and managers to safeguard a 23,000-tonne ore stockpile. By March, Liberty Bell Bay was placed into voluntary administration.

It is a substantial clean-up effort that would be required at this site. Certainly, Tasmanians would understand that these major industrial sites do have significant rehab liabilities.

— Felix EllisTasmanian Minister for Business, Industry and Resources Felix Ellis discussing the rehabilitation obligations for the closed smelter site.

Despite efforts, a consortium of buyers could not reach an agreement to restart the smelter. Tasmanian Minister for Business, Industry and Resources Felix Ellis stated that while opportunities for a future smelter operator might exist, restarting the site in the short term is no longer feasible. The focus now shifts to the significant rehabilitation liabilities associated with the industrial site.

An October report by William Buck, administrators for Sanjeev Gupta's Whyalla Ports Pty Ltd, estimated the rehabilitation claim at approximately $200 million should the facility close permanently. Ray Mostogl, chief executive of the Tasmanian Minerals, Manufacturing and Energy Council, believes the cost of decommissioning and rehabilitating the site will likely surpass the expense of restarting it, highlighting the substantial financial and environmental challenges ahead.

In my view it's going to cost more to decommission and rehabilitate than it is to restart it.

— Ray MostoglTasmanian Minerals, Manufacturing and Energy Council chief executive Ray Mostogl on the cost comparison between decommissioning and restarting the smelter.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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