Tasmania Secures 200 Jobs at Smelter With $3M Wage Deal

When workers at Tasmania's Liberty Bell Bay smelter faced an impossible choice this week—take unpaid leave or lose their jobs—two levels of government said "not on our watch."

The Tasmanian and federal governments announced a $3 million loan Wednesday to cover three weeks of wages for nearly 200 workers at Australia's only remaining ferromanganese smelter. The deal buys critical time as administrators search for a buyer to save the historic Bell Bay facility.

The smelter, which produces alloys that strengthen steel, entered administration in March after years of turbulence under British owner Sanjeev Gupta's GFG Alliance. Workers were told last week they'd need to take unpaid leave starting Friday or face termination.

Federal Industry Minister Tim Ayres visited the site with Premier Jeremy Rockliff to announce the wage guarantee. The two governments split the $3 million cost evenly, covering the workforce's $1.6 million fortnightly payroll with room to spare.

"We need to give the sale process the best possible chance," Rockliff said. That process could take two to six months, but administrators from Ernst & Young report a dozen potential buyers have expressed interest.

The Bright Side

Union and industry leaders say the smelter remains profitable in the right hands. The key to any successful sale? Keeping the highly skilled workforce intact.

That's exactly what this deal accomplishes. Chris Donovan from the Australian Workers' Union said while they'd hoped for faster action, "we are happy with where we are now."

The workers originally faced a Tuesday 5pm deadline to decide their futures. As negotiations progressed, that deadline shifted to Thursday, then disappeared entirely when the deal came through.

Both government leaders didn't hold back criticism of GFG Alliance, which purchased the smelter in 2019. The company moved $200 million out of Liberty Bell Bay to related parties and paid dividends to its UK parent while the operation struggled.

"The owners have let us down, big time," Rockliff said. "They've deserted the community and deserted the workforce." Ayres agreed, placing responsibility squarely on GFG's leadership.

The state government previously lent GFG Alliance $20 million to purchase iron ore, which still sits unused at the site. Contractors are owed millions, and Australia's securities regulator has filed court action over years of missing financial reports.

When asked about extending support beyond three weeks if no buyer emerges, Rockliff left the door open. "We've demonstrated today that we're in their corner," he said.

For now, 200 families in Northern Tasmania can breathe easier knowing their next three paychecks are secure while hope for a long-term solution grows stronger.