Loan of $20m to troubled smelter deemed high risk, govt went ahead anyway

Key points

• An internal document shows the Tasmanian government was advised to approve a $20 million loan to Liberty Bell Bay, the country's only manganese smelter, despite high risk of not recovering all the money. The advice judged that doing nothing carried greater risk.
• The smelter closed in July and was liquidated, costing more than 200 jobs. Minister Felix Ellis said the government stood by its decision, saying the loan gave workers the best chance of a future.
• The smelter's administrator believes the company was insolvent from May 2025, though its directors declared solvency in August that year.