Liberty Bell Bay Manganese Smelter Closes After Loan Default and Failed Restart

Australia's only manganese alloy smelter at Liberty Bell Bay has closed, with short-term restart ruled out after a loan default and failed buyer negotiations, Abc reported. The facility, located roughly 50 kilometres north of Launceston in Tasmania, produced ferromanganese alloy from manganese ore for steelmaking.

It halted operations in May 2025 due to ore supply issues and volatile market conditions.

In August 2025 the Tasmanian government provided a $20 million loan to GFG Alliance to purchase ore, but the smelter never restarted. GFG Alliance defaulted on the loan in January 2026. The Tasmanian government then appointed receivers and managers to protect the 23,000-tonne ore stockpile.

Liberty Bell Bay entered voluntary administration in March 2026. A consortium of buyers could not reach an agreement to restart operations. Tasmanian Minister for Business, Industry and Resources Felix Ellis stated that bringing the smelter back into operation in the short term is no longer an option.

He added that a substantial clean-up effort will be required at the site. Ellis said the Tasmanian government holds high-ranking security over the ore and the site and remains confident the $20 million loan is recoverable. A William Buck report indicated that a rehabilitation claim valued at approximately $200 million would crystallise in the event of closure.

TMEC chief executive Ray Mostogl stated that decommissioning and rehabilitating the site will cost more than restarting it and that the closure will trigger a domino effect through the Tamar Valley supply chain. In March 2026 the Australian government released more than $50 million in funding to help create a domestic critical metal refining industry.