Workers at Tasmania’s only manganese smelter have been thrown a short-term lifeline, with the state and federal governments striking a deal to pay employee wages for another two weeks.
The federal and Tasmanian government have agreed to a second short-term worker support package worth AU$1.6 million, split 50:50 between both state and federal governments.
The two-week funding package aims to provide some certainty to workers, their families, and the broader George Town community while administrators continue to secure a new owner for the operation.
In April, the voluntary administration period for the northern Tasmanian smelter was officially extended until July 29.
Jeremy Rockliff, Premier of Tasmania, said the government is focused on helping the workers of the troubled smelter.
“We recognise the uncertainty faced by workers, families, businesses and the broader George Town community,” the Premier said.
“This decision is about backing workers and their families while administrators work through the final steps of the sales process.
“Our focus has always been on supporting workers, protecting the Bell Bay community and preserving options for the future of the smelter.”
Liberty Bell Bay is the country’s only manganese alloy smelter. It was placed in caretaker mode in 2025 after its parent entity Sanjeev Gupta’s GFG Alliance collapsed.
The state and federal governments will continue working closely with administrators as the sale process progresses, with the shared objective of securing the best possible outcome for workers, the Bell Bay community and Australia’s sovereign industrial capability.
Federal Industry Minister Tim Ayres noted that the assistance backs employees who have been let down by the facility’s previous owner.
Tasmanian Minister for Business, Industry and Resources, Felix Ellis, clarified that the government’s cash offer is subject to strict conditions.
“The best outcome for the workers, the community and small businesses is for the administrator to secure a buyer for the smelter,” Ellis said.
“The site needs a buyer willing and able to invest in the future of the plant and its people.”
The window for non-binding indicative offers closed last week. The joint government loan aims to protect Australia’s sovereign industrial capability and buy administrators the critical time needed to vet prospective buyers.
