GFG Alliance’s Liberty Bell Bay manganese smelter in Australia will be closed immediately following the collapse of a proposed sale.
Administrators from EY Parthenon confirmed the closure, informing employees that the site in northern Tasmania would cease operations after efforts to secure a buyer failed this week.
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The smelter, which had been in administration since March, was subject to uncertainty after one of its main financial backers withdrew from a purchase consortium last month.
The consortium, which initially included Adroit Capital and White Oak, advised administrators that it would no longer pursue the acquisition.
Around 217 workers are affected by the closure of the smelter.
Australian Workers Union Tasmania branch secretary Robert Flanagan was quoted by ABC as describing the news as a significant blow for the workforce and anticipated that contracts would be terminated during an upcoming meeting.
Flanagan stated that the staff would continue to be paid until that point and may then need to seek unpaid entitlements through the federal government’s Fair Entitlement Guarantee Scheme, a process he said could take eight to 12 weeks.
A joint statement from Tasmania Premier Jeremy Rockliff and Federal Industry Minister Tim Ayres called the closure “a sad day” for communities dependent on the smelter.
Both the state and federal governments pledged immediate assistance.
The smelter previously operated at limited capacity because of ore supply shortages.
Last year, the Tasmanian Government provided a A$20m ($14m) loan for ore procurement, and both the state and federal governments contributed $9.6m to continue staff payments during the attempted sale.
A proposed ten-year power agreement was also offered to attract buyers, but this was not enough to secure a successful transaction.
