The Tasmanian government has moved to take control of a manganese ore stockpile after Sanjeev Gupta’s GFG Alliance defaulted on a $20 million taxpayer-funded loan.
Receivers have been appointed to secure the ore, which was purchased with public money to restart the troubled Liberty Bell Bay smelter – Australia’s only manganese alloy plant.
The ore arrived in early October but production never resumed.
Business Minister Felix Ellis said GFG had failed to deliver on its commitments.
“Unfortunately, GFG has not delivered on its promises to Tasmanians and to its workers to restart operations and the loan not been repaid,” he said.
The government has accused the company of breaching multiple loan conditions, including allegedly using the Bell Bay facility as collateral for other operations within Gupta’s sprawling industrial empire.
The receivership targets only the ore, not the broader smelter, in what the government described as an effort to protect public funds while preserving options for the site’s future.
“By securing the ore and not moving immediately to sell it, the government is maintaining options and providing opportunity for Liberty Bell Bay and interested parties to continue discussions about potential future operations at the site,” Ellis said.
The secured loan was approved in August after supply disruptions forced the plant into limited operations earlier this year.
About 250 workers are directly employed at the smelter, with hundreds more jobs in northern Tasmania tied to its operations.
GFG Alliance acquired the facility from South32 in 2021 as part of Gupta’s aggressive expansion into Australian heavy industry.
The British-Indian billionaire’s business empire has faced intense scrutiny since the 2021 collapse of its main financier, Greensill Capital.
The state government said it remained open to discussions with “credible proponents” about the Bell Bay precinct’s future.
