Liberty Bell Bay Smelter Administrator Continues Talks with Preferred Buyer Consortium

In short: The administrator of the Liberty Bell Bay manganese smelter is continuing to engage with the consortium designated as its preferred buyer, the ABC understands.

It was revealed on Friday that one of the members of the consortium had withdrawn from it, leaving workers fearing for their jobs.

What's next? The Australian Workers Union says the continued talks between the administrator and the consortium are a welcome reprieve. The union also says it remains hopeful a sale will be struck.

Liberty Bell Bay has been given another reprieve, with administrators for the mothballed Tasmanian smelter continuing to engage with the consortium designated as its preferred buyer, the ABC understands.

It was revealed on Friday that Adroit Capital had withdrawn from the consortium, with workers informed of a Monday deadline to secure a new source of funding.

Now, following a closed-door stakeholder meeting, the ABC understands no final decision has been made about the smelter's future, and workers will maintain their jobs for the time being.

The ABC understands administrator EY Parthenon is continuing to engage with the consortium.

It is unclear if a new party has been considered as part of the negotiations.

The manganese smelter, which employs more than 200 workers, has received more than $9 million in government assistance since entering voluntary administration in March.

Robert Flanagan from the Australian Workers Union said a six-week funding commitment had been struck, with hopes remaining that a sale could be reached.

"There is a level of certainty for the next six weeks … during the next six weeks, the administration process will be funded," Mr Flanagan said.

He said the funding would come from a consortium "which has the intention of purchasing the business", though he could not provide specific details.

Mr Flanagan said the update was welcomed by Liberty Bell Bay workers, who had been bracing for news that they would lose their jobs today.

"Workers have had a very difficult weekend, their expectation was their employment would be terminated today … it's a welcome reprieve,"

Mr Flanagan said.

"It means that again there is a pathway forward, potentially.

"To have some certainty for the next six weeks is something really valued by the workforce."

Mr Flanagan said workers would meet with the administrators again on Thursday.

"There are a lot of questions workers have around some of the details," he said.

" What is most important at the moment is the administration's funding is in place, which means there is still an active sale process in place … which means there is potentially still a future for Liberty Bell Bay. "

Mr Flanagan said having a consortium willing to fund administration costs — which he estimated were about half a million dollars per week — until the end of July, was a good sign.

"The fact the consortium is prepared to keep funding the administration means there is a level of confidence that a sale process is likely to happen," he said.