Cloud forms again over unique smelter and 200 jobs
Hundreds of jobs and the future of Australia’s only manganese smelter are again in limbo after its preferred buyer ran into trouble during negotiations.
A consortium comprising Adroit Capital, White Oak Global Advisors and OM Holdings was announced as the preferred bidder for Liberty Bell Bay in Tasmania in May.
The smelter, formerly owned by controversial businessman Sanjeev Gupta’s GFG Alliance, ceased production in May 2025 and was placed into administration in March.
On Friday, workers were told that Adroit Capital was no longer in private discussions with executives.
Manager EY Parthenon said critical financing, supplier and government regulatory challenges had arisen.
The federal and Tasmanian governments contributed $5 million in May to secure wages for the smelter’s 216-strong workforce.
EY Parthenon said the money was conditional on the consortium funding non-labor operating costs to enable expedited confirmatory due diligence and completion of the proposed acquisition.
It was stated that due to the lack of a commercially valid transaction and the necessary financing for the continuation of operations, the company counseled the workers regarding their employment.
He stated that urgent negotiations are ongoing to provide more financing so that an alternative path can be followed.
“We recognize that this uncertainty is difficult for employees, their families and the wider Bell Bay community,” said Morgan Kelly of EY Parthenon.
“We are working to provide clarity as quickly as possible.”
The smelter produces ferroalloys critical for steel production.
In a joint statement they said the federal and Tasmanian governments would “stand by” workers through difficult times, but there was no mention of further funding.
“To date, the state and Tasmanian governments have announced a total of $9.6 million in three packages to support workers’ wages throughout the administration,” they said.
“We recognize that this is a difficult and uncertain time for workers and their families, as well as the community and small businesses.
“Support is provided through state and Tasmanian government services.”
On Wednesday the federal, South Australian and Tasmanian governments announced a $105 million funding support package to keep two Nyrstar smelters operating.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
