Tasmanian smelter Liberty Bell Bay pauses operations, leaving 250 workers in limbo as governments call for support

A major Tasmanian smelter has paused operations, leaving hundreds of workers in limbo and prompting calls from both state and federal governments for transparency and urgent support.

Liberty Bell Bay, located in George Town and owned by British businessman Sanjeev Gupta’s GFG Alliance, is Australia’s only commercial ferroalloy operation.

It produces ferromanganese and silicomanganese and is one of Tasmania’s largest industrial energy users.

The smelter, which employs more than 250 people, is the latest of Mr Gupta’s assets to face turmoil.

Earlier this year, the South Australian government forced his Whyalla steelworks into administration, with administrator KordaMentha overseeing debts reportedly around $1 billion, the ABC reports.

A spokesperson for Liberty Bell Bay, formerly known as TEMCO, said the facility lost its primary ore supplier after Tropical Cyclone Megan struck in March 2024.

“We are still working through ore supply options at present,” the spokesperson said.

“Price volatility globally and the imposition of tariffs in the US have also impacted operations.

“Due to ongoing challenges with ore supply, Liberty Bell Bay has no option but to enter a period of limited operations.”

Premier Jeremy Rockliff described the situation in George Town as “very concerning”.

“There’s a workforce of around 253 FTE (full-time equivalent) and around 30 FTE contractors,” Mr Rockliff said.

“And during this pause there will be 40 people engaged, as I understand it in terms of FTEs, in care and maintenance.”

While GFG has said there will be no forced redundancies, the majority of staff are now without work, with the premier warning the operational pause could last “for the foreseeable future”.

Industry Minister Eric Abetz said the state government was “mobilising support” for affected workers, families and businesses.

“We will respond accordingly with our focus on ensuring the wellbeing of the workers, suppliers, contractors and community impacted by this pause,” Mr Abetz said.

Jobs Tasmania has been tasked with co-ordinating support for impacted employees.

Federal Industry Minister Tim Ayres also weighed in, calling for “much more transparency about the state of the business and the decision to halt operations”.

“I urge GFG Alliance to step up and deliver confidence and certainty in the ongoing operations of this facility,” Mr Ayres said.

“They must engage with, and deliver transparency to, the Tasmanian government, staff, unions and the local community about the issues facing the business.

“I have asked my department to establish a rapid assessment team to work with the Tasmanian government to analyse the facility’s commercial position comprehensively and to provide both governments with advice over coming days.”

Tasmanian Labor Opposition Leader Dean Winter warned of broader economic impacts if the smelter fails to recover.

“This is primarily about those 300 jobs,” Mr Winter said.

“But it’s also about all the flow-on impacts of the economy, [and] other major industrials. It’s about power prices. It’s about the actual Tasmanian power network.”

“If this business falls over, there will be wide-ranging impacts that we all need to be aware of.”

Energy expert Marc White from Goanna Energy told the ABC the shutdown could affect Tasmania’s energy and gas markets.

“Liberty Bell Bay accounts for around seven per cent of the state’s energy consumption,” he said.

“It’s one of the state’s largest natural gas consumers, meaning the future cost of transporting gas from Victoria to Tasmania could also be impacted.”

The smelter previously faced closure in 2019 under its former owner, South32, before it was purchased by GFG Alliance in 2020.