Australia's Only Manganese Smelter Closes After Sale Efforts Collapse
Ernst & Young administrators ordered the immediate closure of the Liberty Bell Bay smelter in Tasmania after a buying consortium withdrew its bid.
Administrators from Ernst & Young ordered the immediate orderly closure of Liberty Bell Bay on July 16, 2026. The facility, Australia's only manganese smelter, had been in voluntary administration since March and stopped production in mid-2025. The decision followed the collapse of a sale to a consortium including Adroit Capital and White Oak, after the group notified administrators on Tuesday that they would no longer pursue the purchase.
The closure affects approximately 217 workers, though a small team will be retained briefly to demobilize the site and manage asset liquidation. Affected employees may need to seek unpaid entitlements through the federal government's Fair Entitlement Guarantee Scheme. The shutdown removes Australia's onshore capacity to process manganese, a mineral essential for steelmaking and battery production.
Despite significant intervention, the sale failed. The Tasmanian government provided $150 million in support over a decade, including a final $20 million loan for ore procurement, while federal and state governments provided approximately $10 million for payroll support. Administrators cited volatile global economic conditions and difficulties with operating requirements as key factors in the shutdown. The plant was previously owned by Sanjeev Gupta's GFG Alliance, which acquired the site from BHP in 2021.