Troubled smelter faces shutdown move by regulator

The Australian Securities and Investments Commission on Friday announced it had filed an application with the NSW Supreme Court to wind up the smelter.

It says Liberty Bell Bay, which has roughly 250 workers on its books, failed to lodge annual reports with ASIC for the financial years ending in 2021, 2022, 2023 and 2024. 

ASIC says Liberty Bell Bay, owned by GFG Alliance which is headed by British businessman Sanjeev Gupta, failed to comply with a court order to lodge reports for 2024/25. 

"ASIC has now applied to wind up Liberty Bell Bay on just and equitable grounds," it said in a statement. 

"It is important that annual reports are lodged in a timely manner to assist creditors and other users of the annual reports in making informed decisions when dealing with large companies."

GFG Alliance and the federal government have been contacted for comment. 

In August, Tasmania's government loaned Liberty Bell Bay $20 million to purchase ore with the goal of resuming operations.

When operations didn't restart, the government in January appointed receivers and managers to protect the ore stockpile, accusing the company of breaching loan arrangements.

Business, Industry and Resources Minister Felix Ellis said the ASIC news would be challenging for workers, their families and the wider community.

"GFG has failed to deliver on its promises to Tasmanians and to its workers to restart operations," he said.

"To the workers and their families: we are in your corner.

"We will continue to work closely with the receivers, workforce and the community throughout this process."

GFG Alliance in November said it had signed a memorandum of understanding with a Georgian company, Steel International Trading Company, to operate the smelter for up to five years. 

Gupta has faced troubles elsewhere in Australia. He previously ran the Whyalla steelworks in South Australia and Tahmoor Coal in NSW, which are both under administration.