Liberty Bell Bay courts new European operator for troubled manganese smelter

ABC NEWS (Australia)

Six months after it stopped processing ore, Liberty Bell Bay is courting a new operator for the troubled manganese smelter. It's signed a memorandum of understanding with a foreign company, which it says could provide operating capital and more customers for the smelter's product.

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00:00The agreement will see the Steel International Trading Company,

00:05which is based in Georgia in Eastern Europe,

00:07operate the troubled smelter for up to five years.

00:10Liberty Bell Bay's owner, GFG Alliance, says

00:13because Steel International Trading Company

00:15is already a supplier of ferro-alloys into the United States market,

00:19the deal will give the smelter greater supply flexibility and market reach.

00:23GFG says the arrangement will also provide more money

00:27to provide for day-to-day operations at the smelter.

00:29Liberty Bell Bay has been in limited operations since May,

00:33which it attributed to ore supply challenges and global price volatility.

00:37The smelter has now purchased ore using a $20 million state government loan,

00:42but has not restarted production, blaming falling market prices in the US.

00:47The agreement with Steel International Trading Company

00:49will need approval by regulators and the federal government.

00:52Federal Industry Minister Tim Ayres has noted the development.

00:56He says he's consistently called for GFG to invest in the ongoing operations of the smelter

01:01and provide a pathway for its future.

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