Tasmania Appoints Receivers Following Liberty Bell Bay’s $20M Loan Default
Tasmania has appointed receivers to take control of a manganese ore stockpile following a significant loan default by GFG Alliance. The company, owned by Sanjeev Gupta, failed to repay a $20 million loan from taxpayers, which was intended to revitalize the Liberty Bell Bay smelter. This facility is notable for being Australia’s sole manganese alloy plant.
Background of the Loan Default
The manganese ore was delivered in early October, but production at the smelter never resumed. Business Minister Felix Ellis stated that GFG Alliance did not fulfill its obligations. “Unfortunately, GFG has not delivered on its promises to Tasmanians and to its workers to restart operations and the loan has not been repaid,” he remarked.
Loan Breaches and Receivership Details
The Tasmanian government alleges that GFG breached various loan conditions. Reports suggest that the company may have used the Bell Bay facility as collateral for other loans in Gupta’s industrial network. The government’s receivership action focuses solely on the ore stockpile, aiming to safeguard public funds while keeping future options open for the smelter.
- Loan Amount: $20 million
- Delivery Date of Ore: Early October 2023
- Number of Employees at Smelter: Approximately 250
Future Prospects for Liberty Bell Bay
By securing the ore without immediate plans for sale, the government is keeping avenues open for potential future operations at Liberty Bell Bay. Ellis emphasized that this approach provides opportunities for discussions with interested parties regarding the site’s future.
The secured loan was approved in August 2023 as the plant faced supply disruptions earlier in the year. GFG Alliance took over the facility from South32 in 2021 amid Gupta’s ambitious strategy to expand into Australia’s heavy industry sector. However, since the collapse of Greensill Capital in 2021, the enterprise has encountered intense scrutiny.
Government’s Stance on Future Operations
The Tasmanian government is open to engaging with “credible proponents” to explore future options for the Bell Bay precinct. While the immediate future remains uncertain, this proactive measure could pave the way for renewed operations.
For more updates, visit Filmogaz.com.
