Australia's Only Manganese Smelter Closes, Leaving Hundreds Jobless

Australia's sole manganese smelter, Liberty Bell Bay, has ceased operations permanently after an eleventh-hour deal to find a new owner fell through. Administrators ordered the closure of the facility in George Town, Tasmania, on Thursday.

"In the absence of both a commercially viable transaction, and the funding required to continue operations, the administrators have made the difficult decision to commence the orderly closure of the business with immediate effect," EY-Parthenon, the appointed administrator, stated. The firm cited "broader economic challenges associated with operating the smelter in a volatile global economy" as contributing factors.

More than 200 workers were informed on Thursday morning that their positions had been made redundant, with only a small number remaining to oversee the safe demobilisation of the site. The smelter produced manganese, a transition metal crucial for steel production and the manufacturing of batteries for electric vehicles.

The Mining and Energy Union expressed disappointment, stating that members had expected the smelter to be sold. A union spokesperson vowed to assist affected members in accessing their entitlements and to continue advocating for government support for workers, their families, and the community.

Tasmanian Premier Jeremy Rockliff and federal Industry Minister Tim Ayres acknowledged the closure as a significant loss. "Workers, unions, local businesses, EY and all levels of government have worked tirelessly these past few months towards finding a serious buyer for the smelter," they said in a joint statement. "This is deeply difficult news for the workers of Liberty Bell Bay and the communities of Bell Bay, George Town and northern Tasmania who have fought tirelessly for a better outcome."

Both the Commonwealth and Tasmanian governments stated their focus is now on ensuring workers and their families receive immediate support. Governmental assistance had previously been provided to the smelter, including a $20 million loan from the Tasmanian Government for ore purchase in October 2025 and $9.6 million from state and federal governments to cover worker wages during the administration period. The smelter had initially suspended operations in May 2025 due to price volatility and ore supply disruptions.