The Liberty Bell Bay manganese smelter in northern Tasmania has officially entered liquidation following a vote by creditors. This decision marks the final chapter for Australia’s only manganese alloy smelter, which had already ceased operations last month after administrators were unable to secure a buyer for the facility. The move follows a period of voluntary administration that began in March 2026, ending more than 65 years of industrial history at the site.
Approximately 200 workers lost their jobs when the smelter closed its doors in July. The transition to formal liquidation now allows these former employees to access the federal government’s Fair Entitlements Guarantee scheme, which provides a safety net for unpaid wages, redundancy pay, and other leave entitlements. While this offers some financial relief, the closure remains a significant blow to the local economy in George Town and the broader Bell Bay region.
Financial reports presented to creditors suggest the company may have been trading while insolvent for nearly a year. The facility, previously a profitable operation, faced severe financial strain amid claims that its parent company, GFG Alliance, moved nearly $200 million out of the business to support other global operations. These intercompany loans significantly eroded the smelter's working capital, leaving it unable to sustain operations.
The Tasmanian government, which had provided a $20 million loan to the smelter last year in an attempt to keep it running, is now dealing with the fallout. A portion of those funds was used to purchase a stockpile of manganese ore, which remains on-site under the control of state-appointed receivers. As the liquidation process moves forward, the focus shifts to the sale of remaining assets and the long-term economic recovery of the impacted community.