Troubled smelter faces shutdown move by regulator
Australia’s only manganese alloy smelter could be shut down by the corporate regulator after the company took legal action over its failure to submit annual financial reports.
Liberty Bell Bay in Tasmania’s north has been idle since May, when it ceased operations due to ore supply problems and global price fluctuations.
The Australian Securities and Investments Commission announced on Friday it had applied to the NSW Supreme Court to close the smelter.
It is stated that Liberty Bell Bay, which has approximately 250 employees on its records, failed to submit an annual report to ASIC for the financial years ending 2021, 2022, 2023 and 2024.
ASIC said Liberty Bell Bay, owned by GFG Alliance, chaired by British businessman Sanjeev Gupta, had failed to comply with a court order to submit a report for the 2024/25 period.
“ASIC has now applied for the closure of Liberty Bell Bay on fair and equitable grounds,” it said in a statement.
“It is important that annual reports are provided in a timely manner to help creditors and other annual report users make informed decisions when dealing with large companies.”
The GFG Alliance and the federal government have been contacted for comment.
In August, the Tasmanian government loaned Liberty Bell Bay $20 million to purchase ore to continue operations.
When operations did not restart, the government appointed trustees and administrators in January to protect the ore stockpile and accused the company of violating credit regulations.
Trade, Industry and Resources Minister Felix Ellis said ASIC news would be challenging for workers, their families and the wider community.
“GFG has failed to deliver on its promises to the people of Tasmania and its employees to restart operations,” he said.
“To workers and their families: We are in your corner.
“We will continue to work closely with buyers, the workforce and the community throughout this process.”
GFG Alliance announced in November that it had signed a memorandum of understanding with Steel International Trading Company, a Georgian company, to operate the smelter for up to five years.
Gupta has encountered problems elsewhere in Australia. It previously operated the Whyalla steelworks in South Australia and the Tahmoor Coal works in NSW; both were under administration.
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.
