The Tasmanian and federal governments have reached a deal to secure the wages of more than 200 workers at the Liberty Bell Bay ferromanganese smelter.
The package worth AU$3 million will be funded 50/50 by both state and federal governments and will guarantee payroll for the employees for the next three weeks.
Federal Industry Minister Tim Ayres and Tasmanian Premier Jeremy Rockliff announced the deal while visiting Liberty Bell Bay.
Rockliff acknowledged the difficulties faced by the smelter’s workers and the broader George Town community in light of Liberty Bell Bay’s financial troubles.
“We’ve been let down by GFG and the owners,” the Premier said, noting that the plant accounts for roughly 850 direct and indirect jobs and a AU$350 million injection into the state economy.
“Now the owners have let us down big time, and that’s an absolute understatement, and they’ve deserted this community. They deserted the workforce and showed absolute disrespect for Tasmania.”
The smelter was placed into voluntary administration last month following the collapse of Sanjeev Gupta’s GFG Alliance.
Administrators are currently working to identify a responsible owner, with both governments refusing to rule out further support if a deal is not reached within the initial 21-day window.
Minister Ayres described Liberty Bell Bay as an efficient, “top-shelf” industrial facility that remains a victim of “bad corporate behaviour”.
He emphasised that the government’s intervention is an extraordinary step intended to keep the workforce intact for a potential buyer.
“This facility has been owned by an industrial conglomerate that has – I’ll choose my words carefully – not behaved in the best interests of the facility. That is what has happened here,” Ayres said.
While the funding has been welcomed by the Bell Bay Joint Unions, labour leaders warn that three weeks of support is insufficient for a complex industrial sale.
Australian Workers Union Assistant National Secretary Chris Donovan described the funding as a short-term lifeline, noting that a realistic sale timeline could span months.
“This is a nationally significant asset – the only one of its kind in Australia – and it supports hundreds of direct jobs and hundreds more in the community,” he said.
“You can’t flick the switch on a sale like this and hope for the best. If it’s even possible to rush a sale, that risks undermining the very jobs we’re trying to save.”
The smelter is considered a critical piece of Australia’s sovereign capability, as it is the only facility in the country capable of turning manganese ore into products essential for the steel industry.
To make the site more appealing to potential new owners, the Tasmanian government highlighted that it previously secured a long-term power agreement and a AU$20 million stockpile of ore, which remains ready for use should operations restart under new management.
