Australia’s last domestic manganese smelter is shutting down with immediate effect, ending more than 60 years of industrial history in northern Tasmania.
The administrators of the Liberty Bell Bay smelter, EY Parthenon, announced the sudden closure July 16 after a rescue bid for the troubled facility collapsed.
The administrators found no buyer for the facility despite an expedited sales process, which was supported by the federal and Tasmanian governments.
The smelter, formerly owned by UK billionaire Sanjeev Gupta’s GFG Alliance, had been in voluntary administration since March.
While hopes were raised in May when a buyer consortium agreed to purchase the asset, the deal unravelled after one of the consortium’s main financial backers pulled out in June.
On Tuesday, the remaining buyers formally notified administrators that they were walking away due to difficulties securing key operational and enabling arrangements.
“In the absence of both a commercially viable transaction, and the funding required to continue operations, the Administrators have made the difficult decision to commence the orderly closure of the business with immediate effect,” EY Parthenon said in a statement.
The administrators cited “volatile global economy” pressures and steep economic challenges as driving factors behind the failed rescue attempt.
Tasmanian Premier Jeremy Rockliff and federal counterparts expressed deep sadness, describing the closure as a “very sad day” for the region.
Both state and federal governments had previously intervened, injecting almost AU$10 million in funding to support workers’ wages throughout the administration process and a joint offer to consider a AU$20 million start-up package.
In addition, the Tasmanian government provided a AU$20 million loan to the previous owner to purchase ore which remained on-site at the smelter for a potential buyer.
The consortium was also offered to continue the concessional 10-year power agreement struck with the previous owner last year.
To support the workers, the state government is partnering with Master Builders Tasmania to launch a new program to retrain workers from Liberty Bell Bay for new careers in building and construction.
The FORGE AHEAD program will give Liberty workers the opportunity to undertake nationally recognised training needed to step onto commercial and residential construction sites.
