Tasmania Seizes Ore Stockpile After Liberty Bell Bay Loan Default
The Tasmanian government has taken decisive action following a loan default by Liberty Bell Bay, Australia’s sole manganese alloy smelter. Receivers and managers have been appointed to safeguard a stockpile of manganese ore financed by taxpayers at the facility.
Tasmania’s Response to Loan Default
In August, the Tasmanian government granted a $20 million loan to Liberty Bell Bay, with $14.5 million allocated for a specific ore shipment of 23,000 tonnes delivered in October. However, the smelter’s operations remain halted, a situation that has persisted since May last year. Management attributed the shutdown to ore supply challenges and fluctuations in global prices.
Background of Liberty Bell Bay
The smelter, located near George Town, was acquired by GFG Alliance in 2020, led by British businessman Sanjeev Gupta. Despite receiving financial assistance, the company has yet to resume operations or repay the loan, leading to significant concerns among stakeholders.
The Government’s Position
Felix Ellis, Tasmania’s Minister for Business, Industry, and Resources, expressed disappointment regarding GFG’s failure to meet commitments. He emphasized the importance of protecting public funds and highlighted ongoing discussions for the potential future of Liberty Bell Bay.
- Current state of operations: Paused indefinitely since May 2022.
- Loan amount: $20 million from the Tasmanian government.
- Ore shipment value: $14.5 million.
- Location: Northern Tasmania, near George Town.
Supplier Impact
The financial struggles have also affected local businesses. Suppliers of Liberty Bell Bay are owed a total of $1.3 million, as stated by Susie Bower, CEO of the Bell Bay Advanced Manufacturing Zone. Some suppliers have not received payments since December, leading to potential closures and layoffs.
- Outstanding payments: At least five businesses awaiting $1.3 million.
- Timeframe of non-payment: Some since December 2022.
The situation has created a ripple effect, threatening jobs and the viability of local suppliers. As discussions continue, stakeholders hope for a resolution that secures the future of both Liberty Bell Bay and its associated businesses.
Conclusion
The Tasmanian government remains open to collaboration with Liberty Bell Bay while safeguarding public interests. The outcome of ongoing negotiations will be crucial for the local economy and the future of manganese alloy production in Australia.
