Australia govt says Liberty Bell Bay smelter to close

The Australian government has confirmed that the Liberty Bell Bay manganese smelter in northern Tasmania will close following regulatory action by the Australian Securities and Investments Commission (ASIC). The smelter, Australia’s only manganese alloy producer, has failed to lodge annual financial reports for five consecutive years, prompting apply for its winding up in the NSW Supreme Court.

The smelter, owned by Sanjeev Gupta’s GFG Alliance, entered voluntary administration in March 2026 after secured lender placed it into administration. Despite a $20 million loan from the Tasmanian government in August 2025 to restart operations, the smelter did not resume full production, and receivers were appointed in January 2026 to protect a stockpile of 23,000 tonnes of manganese ore.

GFG Alliance has signed memorandum of understanding with Steel International Trading Company (SITC) to lease the smelter for up to five years, offering some hope for continued operations. However, federal and state officials have expressed skepticism about the likelihood of further government support for GFG, citing ongoing financial instability across its Australian operations.

The closure of Liberty Bell Bay raises concerns about the loss of 250 jobs and the impact on Tasmania’s industrial sector, which relies heavily on the smelter for employment and energy consumption. Federal Industry Minister Tim Ayres emphasized that businesses must comply with Australian law and continue to meet obligations to workers.

With administration proceedings underway, the future of the smelter remains uncertain, though efforts continue to secure a buyer or operator to ensure its long-term viability.