UK-based firm eyes Tasmanian smelter in liquidation

• The Liberty Bell Bay manganese smelter in Tasmania has entered liquidation and ceased operations after a previous sale agreement collapsed, resulting in approximately 200 job losses.
• UK-based Natrium Redox Technologies is bidding to acquire the site, offering a proposal it claims is superior to potential interest from former preferred buyer White Oak.
• The Tasmanian government has urged liquidators to ensure all credible proposals are properly tested to secure the best outcome for the facility’s future and its creditors.

A UK-based green technology firm is urging Australian authorities to step in and save Tasmania’s Liberty Bell Bay manganese alloy smelter, arguing that its strategic importance outweighs the complexities of its recent collapse. Natrium Redox Technologies is calling on both state and federal governments to secure the site’s future, even as the facility undergoes a formal liquidation process.

The 66-year-old smelter, the only facility of its kind in Australia, was forced into liquidation earlier this month. Its decline began in March when it entered administration following financial instability within former owner Sanjeev Gupta’s GFG Alliance. Although a consortium led by the US private equity firm White Oak was initially named the preferred buyer, the deal eventually collapsed, leading to the smelter’s closure and the loss of roughly 200 jobs.

Control of the site now rests with liquidators from EY Parthenon, whose primary mandate is to recover funds for creditors. However, the race for the site’s future is far from over. White Oak, a secured creditor, has reportedly signaled a renewed interest in the acquisition. According to the Australian Workers’ Union, any potential return by White Oak would likely be contingent on the Tasmanian government waiving the site’s significant environmental liabilities.

Natrium Redox Technologies offers a different path. Executive Chairman Dr. Bill Higgs revealed that his company has been in high-level talks with government officials since March. He maintains that Natrium’s proposal provides a more sustainable and beneficial outcome for creditors and the Australian economy alike. Higgs noted the inherent tension in the current situation, pointing out the difficulty of addressing a major strategic asset while a strictly defined legal liquidation process is in the driver’s seat.

In response to the competing interests, Tasmanian Industry Minister Felix Ellis has formally asked EY to ensure that every credible proposal is given a fair hearing through a rigorous market testing process. While the Minister expressed a commitment to finding a viable solution, he acknowledged the limitations of the government’s role, noting that as the liquidator, EY maintains ultimate control over the site’s disposal and any final decisions regarding its fate.

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Original article and photo by "ABC News"