Smelter clean-up bill likely to be funded by Tasmanian taxpayers, experts say

The future of the Liberty Bell Bay manganese smelter site in Tasmania remains uncertain, with experts predicting that Tasmanian taxpayers will likely foot the bill for its rehabilitation and cleanup. Administrators announced the smelter's closure on Thursday after failing to secure a buyer, leaving approximately 200 workers jobless.

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This particular site will need a significant rehabilitation if it does come to that kind of full closure.

Tasmanian Minister for Business, Industry and Resources Felix Ellis acknowledged the significant financial burden the site could pose if it closes permanently. "This particular site will need a significant rehabilitation if it does come to that kind of full closure," Ellis stated, adding that the government is closely monitoring the situation. While not ruling out another operator taking over, the focus is shifting towards the potential costs of closure.

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Liquidators have a power that administrators don't. If the company goes into liquidation, what would happen is the liquidators would be able to disclaim the property.

Legal experts suggest that if the company enters liquidation, the responsibility for the site and its cleanup will likely fall to the state government. Professor Jason Harris, an expert in corporate and insolvency law at the University of Sydney, explained that liquidators can disclaim property, returning it to the state government as the ultimate owner. "Then the land will go back to the state government, as the kind of ultimate owner for the land that no-one owns. They'd be responsible for the land," Harris said.

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Then the land will go back to the state government, as the kind of ultimate owner for the land that no-one owns. They'd be responsible for the land.

An October report estimated the rehabilitation costs at around $200 million if the facility were to close. Minister Ellis confirmed this figure is "around that mark," emphasizing the substantial nature of the required work. The operation at Liberty Bell Bay is Australia's only manganese smelter, adding to the significance of its potential closure and the subsequent cleanup costs.

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It's too early. This is still a hypothetical at this stage.