ASIC Drops Case Against Tasmania’s Only Manganese Smelter
Synopsis
ASIC has discontinued its Supreme Court case against Liberty Bell Bay, Australia's only manganese smelter, after reaching an agreement with administrators Ernst and Young. The regulator had been trying to wind up the Tasmanian facility over GFG Alliance's failure to lodge five years of financial reports. Dropping the case removes a significant obstacle to finding a buyer. The plant has been shut since May last year and 216 workers have remained on the payroll. A $3 million government loan last week bought the sale process another three weeks to find a buyer.
Australia’s corporate regulator has ended its legal pursuit of Liberty Bell Bay, clearing a major obstacle as insolvency administrators seek to sell the country’s only manganese smelter and save 216 jobs.
Key Highlights
- ASIC abandons case against Liberty Bell Bay, makes deal to withdraw Supreme Court claim with administrators Ernst and Young.
- ASIC has been attempting to close the company down over accusations that it had failed to submit financial reports between 2021 and 2025.
- The northern Tasmania plant was suspended from operations after the collapse of former owner GFG Alliance in May last year.
- A total of 216 employees who report for work and are paid while a buyer is sought.
- Last week, state and federal governments provided a $3 million loan to pay workers for another three weeks while the sale process continues.
ASIC Drops the Case, But Here Is What Changed
In March ASIC initiated proceedings in the NSW Supreme Court to wind up Liberty Bell Bay, accusing its former owner, British businessman Sanjeev Gupta’s GFG Alliance, of not lodging annual financial reports for five consecutive years from 2021 to 2025. But those proceedings have now been discontinued following an agreement between ASIC and the administrators Ernst and Young, sanctioned by the Supreme Court.
Further hearings have been vacated. Administrators have welcomed the move, getting legal proceedings ceased removes a major hurdle to sealing a sale of the facility and leaves any prospective purchaser with a clearer path into taking it on board.
Why It Matters, The Lowe Down Australia Only Manganese Smelter at Risk
Liberty Bell Bay is the only manganese smelter site in Australia, adding a strategic element to its industrial infrastructure. The plant closed in May last year when GFG Alliance went into administration, but 216 workers have continued to go into work and get paid while administrators continue searching for a buyer.
Things reached a crisis point earlier this month, when administrators warned there was no longer enough money to continue paying the entire workforce, with around 175 workers told they would either have to take leave without pay or face redundancy.
Feds Step In With $3 Million Loan To Buy Time
Last week Tasmanian Premier Jeremy Rockliff and federal Industry Minister Tim Ayres confirmed a $3 million loan shared half and half between the state and federal governments would be given to Ernst and Young so it could continue paying workers through the sale process.
“We’re supporting the workers and their families and the community,” Prime Minister Anthony Albanese said. He said, “This facility and these jobs matter.” The loan gives administrators about three additional weeks to track down a purchaser, making the dropping of ASIC’s case all the more propitious as it expels what may have been a deal-breaking requirement for any potential purchaser.
FAQs
- ASIC dropped the case?
ASIC alleged former owner GFG Alliance failed to lodge annual financial reports for five consecutive years, 2021 to 2025, and moved to wind up the company as a result.
- Are the workers still being paid?
Yes, for now. The 216-strong workforce was kept paid with a $3 million government loan last week for nearly three more weeks, during which time the sale process continues.
- What is manganese used for?
Manganese forms part of steel and battery production, giving the output from Liberty Bell Bay an application to both older-style heavy industry and the expanding electric vehicle supply
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