One of Australia’s biggest industrial manufacturing employers has scaled back production, blaming global supply problems and US tariffs, with staff encouraged to take leave.
Manganese alloy smelter Liberty Bell Bay, in Tasmania’s north, announced on Monday it had no option but to enter a period of limited operations due to ongoing challenges with ore supply.
AAP has been told there are no immediate forced redundancies planned, with the company asking employees to take available leave.
The smelter, formerly known as TEMCO, is owned by international company GFG Alliance, owned by UK billionaire Sanjeev Gupta.
In 2020, it employed about 250 workers when it was acquired from global mining and metals company South32.
A Liberty Bell Bay spokesperson told AAP they were working through ore supply options.
“Liberty Bell Bay lost its main ore supplier last year due to Tropical Cyclone Megan which caused extensive damage to South 32’s GEMCO infrastructure, placing pressure on inventory and working capital,” the spokesperson said.
“Price volatility globally and the imposition of tariffs in the US have also impacted operations.”
Premier Jeremy Rockliff told ABC News scaled back operations would affect the majority of staff at the facility, including 40 contractors.
Tasmanian Industry Minister Eric Abetz said the government was taking immediate action to support impacted workers, their families and the local community.
“The Tasmanian government has been and will continue to maintain very close contact with Liberty Bell Bay and the broader GFG Alliance group as it works through this situation,” Mr Abetz said.
“We will respond accordingly with our focus on ensuring the well-being of the workers, suppliers, contractors and community impacted by this pause.”
This isn’t the first Australian site where GFG Alliance has faced trouble. Production at the Whyalla Steelworks in South Australia was halted in January after suppliers ceased deliveries due to unpaid bills.
The site, operated by OneSteel, a subsidiary of GFG Alliance, was placed into administration a month later, after the South Australian government fast-tracked legislation through parliament.
Administrators found a total of $837.1 million is owed to unsecured creditors, including trade creditors, associated entities and prepaid sales, by OneSteel.
Mr Abetz has informed the federal government of the development, saying the Tasmanian smelter was of “national strategic importance”.
“We are a strong supporter of Liberty Bell Bay and recognise it as a key employer and contributor to the Tasmanian economy, and we will continue to work closely with stakeholders through this period,” he said.
Liberty Bell Bay is a producer of ferro manganese and silicomanganese. It is the only commercial ferroalloy operation in Australia.
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