The administrators of the Liberty Bell Bay manganese smelter believe the company had been insolvent since May last year, months before the Tasmanian government loaned it $20 million.
The smelter in northern Tasmania was placed into administration in March and officially closed last week, leaving about 200 workers without jobs.
In its voluntary administrators’ report, EY Parthenon identified that Liberty Bell Bay may have been insolvent.
“The Administrators are of the view that the Company [GFG Alliance] was insolvent from as early as 1 May 2025,” it stated.
The company was given a $20 million loan from the state government in August 2025, $14 million of which was used to buy one 23,000-tonne shipment of ore.
The Tasmanian government…