Liberty Bell Bay smelter officially enters liquidation

Attempts will soon begin to recover tens of millions of dollars owed to creditors after Australia's sole manganese alloy smelter, Liberty Bell Bay, was officially placed into liquidation. Creditors voted to liquidate the 66-year-old facility, located in northern Tasmania, appointing former administrators EY Parthenon as liquidators.

The smelter entered administration in March due to long-standing issues with its former owner, GFG Alliance. After a potential sale collapsed last month, the facility officially closed, resulting in 200 workers losing their jobs. Workers had held out hope for a buyer.

A recent report indicated the company may have been trading while insolvent for nearly a year, with debts to creditors estimated between $70 million and $300 million, including $27 million owed to workers. With liquidation underway, affected workers can apply to the federal government's Fair Entitlements Guarantee for entitlements like unpaid wages and redundancy pay, though payments are capped and do not cover unpaid superannuation.

Tasmanian Minister for Business, Industry and Resources, Felix Ellis, described the liquidation as "deeply disappointing" for the local communities. He stated the government is focused on supporting workers and their families. "Liquidation does not diminish the strategic potential of the site," Ellis added, noting third-party interest and the government's intention to engage with the liquidator and potential proponents for the site's future. The government plans to release its Northern Economic Plan at the end of August.

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The Tasmanian government remains focused on ensuring workers and their families are supported during this time. Liquidation does not diminish the strategic potential of the site. There is third-party interest, and the government will engage constructively with the liquidator and prospective proponents as opportunities for its future are explored.