The Liberty Bell Bay smelter will enter a period of ‘limited operations’ due to a lack of raw materials for its ferro manganese and silicomanganese production. Photo: Liberty Bell Bay.
More than 250 workers at a major smelter in Tasmania’s north are at risk of being laid off after a scaling back of production due to a shortage of raw materials.
The Liberty Bell Bay smelter on the River Tamar north of Launceston faces a period of “limited operations” from mid-June after saying it has been unable to source sufficient supplies of manganese to produce ferro manganese and silicomanganese.
Ferro manganese and silicomanganese are ferroalloys used in steelmaking. Ferro manganese is added to steel to improve its hardenability and abrasion resistance properties, while silicomanganese is used as a deoxidiser and alloying additive in steel production.
As a result of the supply problems, smelter owner GFG Alliance has asked staff to take accrued leave or risk being stood down.
But the Australian Workers’ Union (AWU) said the smelter had a particularly young workforce with limited leave accruals.
“The union has received a number of calls from employees concerned they have little to no leave balance for that period,” AWU representative Robert Flanagan told ABC Radio Hobart.
Tasmanian Minister for Business, Industry and Resources Eric Abetz said on Monday (19 May) Liberty Bell Bay had advised the government production would be paused due to global ore supply issues, and said the government was taking immediate action to mobilise support for impacted workers and the broader 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,” Minister 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.
“As with any business interruption, Jobs Tasmania is now engaging to ensure that any impacted employees are offered a range of supports and services.
“I have reached out directly to Tim Ayres, the Federal Minister for Industry and Innovation, to make him aware of the situation as we believe that production out of Liberty Bell Bay is of national strategic importance.
The following day, Premier Jeremy Rockliff said Liberty Bell Bay was Australia’s only manganese smelter and one of Tasmania’s largest employers and economic contributors.
“Over the past week, I have been engaged with and briefed by Liberty Bell Bay, and this morning I met with the George Town Council Mayor,” he said, adding that he had also called the Prime Minister to ask for Federal Government assistance to support the smelter “as a matter of priority”.
“I made it clear to the Prime Minister that Tasmania expects the Federal Government to play a pivotal role in securing supply chain opportunities, acknowledging their Future Made in Australia policy, which seeks to strengthen sovereign capability,” he said.
“The Federal Government’s Critical Minerals Strategy lists manganese, and the United States also designates manganese as a critical mineral.
“Tasmania fully expects the Federal Government to do all it can to support steel-making capability in Australia and secure the operations’ future.
But Federal Minister for Industry and Innovation and Minister for Science Tim Ayres said the Federal and State governments needed more transparency about the state of the business and the decision to halt operations.
“I urge GFG Alliance to step up and deliver confidence and certainty in the ongoing operations of this facility,” he said.
“They must engage with and deliver transparency to the Tasmanian Government, staff, unions and the local community about the issues facing the business. I also urge them to provide sufficient support so that the smelter can continue processing ore.
“I have spoken with my Tasmanian counterpart … and we will continue to work closely,” he added.
“I have asked my department to establish a rapid assessment team to work with the Tasmanian Government to analyse the facility’s commercial position comprehensively and to provide both governments with advice over coming days.”
