Liberty Bell Bay Smelter Gets Six-Week Reprieve as Talks Continue

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It was revealed on Friday that Adroit Capital had withdrawn from the consortium, with workers informed of a Monday deadline to secure a new source of funding.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

"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."