Liberty Bell Bay has been placed into liquidation following a vote by creditors, a move the Tasmanian government has called “deeply disappointing” for the communities of George Town, Bell Bay and northern Tasmania.
Business and Industry Minister Felix Ellis said the decision comes after GFG Alliance “ripped almost $200 million from the business” during its time overseeing the operation.
The company has now transitioned from voluntary administration to liquidation, with EY appointed as liquidator.
More than 200 workers at the smelter lost their jobs last month after EY confirmed the closure of the country’s only manganese smelter, ending more than 65 years of operations at the site long known as Temco.
Ellis said the government would “continue to engage constructively with EY in its capacity as liquidator.”
The closure has also raised questions about a $20 million government loan to Liberty Bell Bay announced in August last year.
Deputy Labor leader Janie Finlay accused the state government of lending the money despite receiving a report weeks earlier showing the smelter was likely insolvent.
“No fair-minded director of any company, no minister of a state should lend money to a company trading insolvent,” she said.
Ellis previously described the loan as a “calculated risk” backed by legal advice and designed to protect taxpayers while giving the smelter a chance to restart.
A $14.4 million pile of manganese ore purchased with part of the loan remains on site under the control of state-appointed receivers and is separate from the liquidation process.
The receivers are expected to begin a sale process for the ore shortly.
The government launched the FORGE AHEAD program with Master Builders Tasmania in July to help former workers complete nationally recognised training and connect with builders hiring across the state.
Drop-in sessions have also been run through the Bell Bay Advanced Manufacturing Zone to support workers into employment or training.
Ellis said liquidation “does not diminish the strategic potential of the site” and that there is third-party interest in its future.
The Tasmanian Government is preparing a Northern Economic Plan due for release at the end of August as part of its broader support for the region.
