Tough blow for Australian manufacturing as smelter closes leaving hundred of workers without jobs

By ASHLEY NICKEL, NEWS REPORTER, AUSTRALIA Published: 09:58, 16 July 2026 | Updated: 10:07, 16 July 2026 Australia's only manganese smelter has shut immediately after an eleventh-hour deal fell through. Liberty Bell Bay was ordered by administrators to close on Thursday after an acquisition deal failed to secure a new owner for the smelter, located in George Town in northern Tasmania. '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,' administrator EY-Parthenon said in a statement.  'These difficulties were, in part, driven by the broader economic challenges associated with operating the smelter in a volatile global economy.'  EY-Parthenon was appointed to oversee the business's operations in March after it stopped operations last May. The smelter made highly sought-after manganese. The transition metal is used in the production of steel and in making batteries, like those used in electric vehicles - two globally massive markets. More than 200 workers were employed at Liberty Bell Bay. They learned their jobs had been made immediately redundant on Thursday morning. Only a handful will remain at the site to oversee its safe demobilisation. Liberty Bell Bay, Australia's only manganese smelter, was closed for good on Thursday More than 200 workers were immediately dismissed from Liberty Bell Bay (above) on Thursday morning The industry's top union told 9News many workers had expected the smelter to be successfully sold.  'We have fought hard alongside our members over many months to keep Australia's only manganese smelter operating,' a spokesperson for the Mining and Energy Union said. 'We will help members access their entitlements and keep fighting for state and federal support for our members, their families and their community. 'These workers have made an immeasurable contribution to the Tasmanian economy, and deserve full wrap-around support from state and federal government.' Tasmanian Premier Jeremy Rockliff and federal Industry Minister Tim Ayres described the closure as a loss to the community in a shared statement. '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. '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 are now focused on ensuring workers and their families are supported during this time, with immediate on-ground support now available.' The smelter stopped operations in May 2025 due to price volatility and disruptions to ore supply The smelter shut down in 2025 due to price volatility and disruptions to ore supply.  The Tasmanian Government gave Liberty Bell Bay a $20million loan to purchase ore, which was delivered in October 2025 but never used. Both state and federal governments contributed $9.6million to ensure workers were paid while EY Parthenon attempted to sell the site.