New attempt to revive manganese smelter in Tasmania

Australia's sole manganese smelter, Liberty Bell Bay, faces liquidation after creditors voted to wind up the company, resulting in approximately 200 workers losing their jobs. The smelter's closure signifies the loss of Australia's sovereign steelmaking capability, as manganese is a crucial component in steel production.

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The consortium has been involved in a range of discussions with private investors and they believe that they have enough private investors to recapitalise the plant.

Despite the grim outlook, a consortium comprising White Oak and OM Holdings has expressed conditional interest in acquiring the site and reviving the smelter. The Australian Workers' Union (AWU) views this as a "phoenix opportunity" and urges the Tasmanian government to support the proposal. The consortium has reportedly secured sufficient private investors to recapitalize the plant and has established a new entity, TEMCO Bell Bay, to facilitate the takeover.

However, the consortium's interest is contingent on the state government waiving pre-existing environmental liabilities at the site. They propose to be responsible only for environmental impacts incurred during their future operations. This condition raises questions about the long-term environmental stewardship of the site, especially given past concerns about the company's financial dealings, including alleged inter-company loans and trading while insolvent.

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From the union's perspective, this is a real phoenix opportunity and we would urge the Tasmanian government to embrace the proposal with some enthusiasm.

Liberty Bell Bay ceased operations in May last year, initially citing ore supply issues and market volatility. The company's owner, GFG Alliance, has faced accusations of financial impropriety. The liquidator, EY Parthenon, believes the company was insolvent for over a year, even after receiving a $20 million loan from the Tasmanian government, a portion of which was repossessed. The situation remains uncertain as the liquidator must consider all proposals for the site.

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So, the new owner would work and be responsible for any environmental impact that they have going forward, but the pre-existing environmental liabilities would not be their responsibility.