The Tasmanian government has met with a US firm reportedly eyeing an acquisition of the country's only manganese smelter. Liberty Bell Bay in the state's north remains out of action despite receiving a $20 million taxpayer-funded loan. Many are now questioning whether a new owner could provide certainty for the smelter's workers.
00:00Weeks after receiving a multi-million dollar lifeline from Tasmanian taxpayers, the smelter is still quiet.
00:10It's distressing, you know, I gave literally all of my working life to Liberty Bell Bay, as so many people have done.
00:18Taxpayers loaned Liberty Bell Bay $20 million to buy a 23,000 tonne shipment of manganese ore.
00:26It came nearly four weeks ago. The smelter was expected to restart, but it continues on care and maintenance.
00:34The Tasmanian government says loan terms have been breached, but Liberty Bell Bay blames the unstable manganese market and says restarting now would be irresponsible.
00:44Liberty Bell Bay is owned by Sanjeev Gupta's GFG Alliance. Experts say there are problems across its businesses.
00:52Its Tarmore coal mine in New South Wales is in limbo, and its Wyala Steelworks was forced into administration earlier this year.
01:00Recent financial documents reveal that Liberty Bell Bay operated at a net loss of $80 million last financial year.
01:09The Tasmanian government has also received advice that it withdrew $200 million from the operation to transfer to a parent company in the UK.
01:19Now, one of its lenders, White Oak Global Advisors, is reportedly considering an acquisition of the smelter.
01:27Liberty Bell Bay says it's received no formal proposal, but the Tasmanian government has met White Oak three times, most recently in August.
01:37We're aware that White Oak has an interest.
01:41Some say an acquisition could be a good thing for its 350 workers.
01:46It's better for the employees perspective to have an owner of the business that is fully funded, rather than have a company owning it that is on the financial precipice.
01:56But others urge caution.
01:58These people are not a benevolent sort of welfare organisation.
02:03They'll be looking to take their pound of flesh, and I think the government needs to look at all the downsides of any potential deal as well.
02:13The Tasmanian government is pushing the Commonwealth to chip in.
02:17It's time for the federal government to step up and support Tasmanian industry.
02:22Federal Industry Minister Tim Ayres says he'll continue to work through the issue.
02:27For the smelter's workers, the uncertainty continues.
02:30They are genuinely concerned about what the future holds.
02:33They are genuinely concerned about what the future holds.
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