Liberty Bell Bay, a manganese smelter in Tasmania, may have been operating while insolvent for over a year prior to its recent closure. Administrators revealed the company was likely unable to meet its financial obligations when the Tasmanian government provided a $20 million loan. The timing of the loan is now under scrutiny, raising questions about due diligence conducted before the funds were released. This revelation casts doubt on the viability of the smelter even with the government’s financial support. The substantial loan was intended to safeguard jobs and maintain manganese production in the region. Administrators are now working to understand the full extent of the company’s financial position and its debts. The situation raises concerns regarding the government's investment and the future of the site.