The future of about 200 workers at Liberty Bell Bay is once again in doubt after a deal to buy Australia’s only manganese alloy smelter collapsed.
Administrators EY confirmed on Friday that a consortium led by Perth-based Adroit Capital was no longer in exclusive talks to buy the northern Tasmanian plant.
EY said the deal fell over because of issues with “critical financing, supplier and government arrangements” that emerged during the exclusivity period.
A condition of the government wage-support deal was that the consortium fund non-workforce operating costs, but EY said that funding did not eventuate.
“In the absence of both a commercially viable transaction and the funding required to continue operations, the company is in the process of consulting with employees regarding their future employment,” the administrators said.
The collapse leaves workers in George Town and the broader Bell Bay region facing fresh uncertainty.
The plant was owned by Sanjeev Gupta’s GFG Alliance before it went into voluntary administration on March 23.
The state and federal governments have so far committed $9.6 million across three packages to keep workers paid during the administration.
In a joint statement, Federal Industry Minister Tim Ayres, Premier Jeremy Rockliff, Minister Felix Ellis and Federal Bass MP Jess Teesdale said the news was a blow.
“This is disappointing news for the workers and communities of Bell Bay, George Town and northern Tasmania who have been in limbo since the previous facility owners, GFG, let them down,” they said.
“The Commonwealth and Tasmanian governments stand with the workers of Liberty Bell Bay at this difficult time.”
“We recognise this is a difficult and uncertain time for workers and their families, as well as the community and small businesses.”
“Support is available through Commonwealth and Tasmanian government services.”
Labor leader Josh Willie said “the priority must be protecting jobs, supporting workers and securing a future for the site”.
“Workers have been living with uncertainty for months and deserve clear answers about what happens next,” he said.
The smelter is the sole domestic producer of manganese alloy, a key input for steelmaking in defence and construction.
