Government Intervention at Liberty Bell Bay Smelter
The Tasmanian government has appointed receivers and managers to secure a manganese ore stockpile at the Liberty Bell Bay smelter, located in northern Tasmania. This action aims to protect the ore, which was purchased with $14.5 million from a $20 million state government loan provided to the smelter in August. The ore shipment, totaling 23,000 tonnes, was delivered in October.
State Secures Ore Amid Defaults
The smelter, Australia's sole manganese alloy producer, has not resumed operations since May of the previous year. Liberty Bell Bay, owned by GFG Alliance, had attributed the operational pause to issues with ore supply and global price volatility. Minister for Business, Industry and Resources, Felix Ellis, stated that the appointment of receivers followed ongoing defaults on the state's loan agreement.
By securing the ore rather than immediately selling it, the government aims to maintain options for Liberty Bell Bay and other interested parties regarding future operations at the site.
Ellis indicated that GFG had not fulfilled commitments to restart operations or repay the loan. The government affirmed its openness to continued collaboration with Liberty Bell Bay.
GFG Alliance Responds, Eyes New Partnership
GFG Alliance issued a statement clarifying that the receiver appointment pertains only to the ore stockpile and does not restrict ongoing efforts to secure the smelter's future. The company also confirmed that Liberty Bell Bay workers remain on standard shift rosters.
GFG has entered into a memorandum of understanding with Steel International Trading Company (SITC), a Georgia-based exports firm, for a potential lease arrangement to operate the smelter for up to five years.
Liberty Bell Bay is currently progressing negotiations and due diligence with SITC, with engagement from the Tasmanian Government. GFG believes SITC's involvement represents the most viable path forward, citing SITC's capability to introduce necessary technology for the smelter's viability amidst challenging market conditions.
Local Businesses Face Financial Strain
Susie Bower, chief executive of the Bell Bay Advanced Manufacturing Zone, reported that Liberty Bell Bay owes at least five local businesses a collective sum of $1.3 million. She noted that some suppliers have not received payments since December, leading to significant financial difficulties, including job losses and potential business closures. Bower urged Liberty Bell Bay to provide clarity regarding the site's future.