The Tasmanian government has stepped in with a $20 million loan to stop the closure of the Bell Bay manganese smelter and told its owner to “step up” and run the business properly.
New Business, Industry and Resources Minister Felix Ellis announced the conditional funding on Wednesday.
He said the money would allow Liberty Bell Bay to buy ore and restart operations at Australia’s only manganese alloy smelter, which was on the brink of shutting down.
The GFG Alliance facility pumps more than $450 million a year into the state economy and is a key part of Australia’s steel supply chain.
But Ellis stressed the bailout was about protecting jobs, not the company.
“Let me be clear. This support is for Tasmanian workers and their families, not for the GFG Group,” he said.
“It is now time for GFG to step up and provide certainty for its workers by committing to do whatever it can to see the smelter continue to operate, including through investing in the operations.”
The smelter supports almost 900 jobs – about 300 directly and hundreds more across northern Tasmania.
The loan comes with stringent conditions, including twice-weekly financial reports and government oversight of ore purchases.
Tasmania also holds first-ranking security over both the purchased ore and all smelter assets, Ellis said.
Bell Bay Advanced Manufacturing Zone chief executive Susie Bower welcomed the move, calling it a “critical step” in keeping operations alive.
“This support sends a strong message that Tasmanian jobs and industrial capability matter,” she said.
The Greens’ Bass MP Cecily Rosol said getting the plant back up and running was vital for local workers after months of uncertainty.
“It’s good to see the state government has stepped in to secure workers’ jobs, but they can’t do it alone,” she said.
“We will continue to call on the federal government to step in and provide long-term surety for workers.”
More on this story: Tasmania’s Liberty Bell Bay smelter halts production amid ore supply crisis
