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🇦🇺 Australia /Economy & Trade

UK Firm Eyes Tasmanian Smelter Amid Liquidation

From ABC Australia · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • A UK-based green technologies firm, Natrium Redox Technologies, has expressed interest in acquiring the Liberty Bell Bay manganese alloy smelter in Tasmania, which is currently in liquidation.
  • The smelter, Australia's only manganese alloy producer, closed earlier this month, resulting in about 200 job losses after a previous deal with a US firm collapsed.
  • Natrium Redox Technologies claims its carbon-neutral production process offers better outcomes for creditors and Australia, and is urging governments to consider its proposal alongside the liquidation process.

A United Kingdom-based green technologies company is vying to acquire Tasmania's Liberty Bell Bay smelter, Australia's sole producer of manganese alloy, which recently entered liquidation. Natrium Redox Technologies has been in discussions with state and federal governments since March regarding its proposal to take over the 66-year-old facility.

I think the challenge becomes how to manage a strategic question for the state and the federal government in a world where you've got a clearly defined administration and liquidation process that is running the show.

— Dr. Bill HiggsExecutive Chairman of Natrium Redox Technologies, discussing the complexities of acquiring the smelter during liquidation.

The smelter, previously owned by Sanjeev Gupta's GFG Alliance, faced financial difficulties and entered administration in March before going into liquidation this month. An earlier deal with a consortium including US private equity firm White Oak collapsed, leading to the closure of the plant and the redundancy of approximately 200 workers. Creditors subsequently voted to wind up the company, appointing EY Parthenon as liquidators.

Natrium Redox Technologies executive chairman Dr. Bill Higgs stated that his company's proposal offers superior outcomes for creditors and Australia. He highlighted the company's proprietary technology, which produces high-purity manganese without carbon emissions, using a chemical-based process instead of coke. Higgs believes the Liberty Bell Bay site is ideal for scaling this technology commercially.

EY controls the site as liquidator and any decision about its future is ultimately a matter for EY.

— Felix EllisTasmanian Industry Minister, explaining the liquidator's control over the smelter's future.

Tasmanian Industry Minister Felix Ellis confirmed discussions with Natrium Redox, White Oak, and other interested parties. He has formally requested the liquidators, EY, to ensure all credible proposals undergo a thorough market testing process before any decision on the site's future is made. The Minister also wrote to ASIC and the federal treasurer seeking support to investigate the conduct of GFG Alliance and pursue asset recovery or enforcement actions.

It's a chemical-based process where we, rather than using coke to strip the oxygen from manganese ore, we actually use sodium to do that same process. And it essentially enables us to produce high-purity manganese powder without emitting any CO2.

— Dr. Bill HiggsDescribing Natrium Redox Technologies' carbon-neutral production method.
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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