Australia’s last manganese smelter will shut down, ending months of uncertainty for workers and dealing a major blow to northern Tasmania’s industrial heartland.Administrators for Liberty Bell Bay announced on Thursday they had begun an immediate “orderly closure” of the business after a proposed sale collapsed, leaving the future of the Bell Bay operation beyond saving for now.The closure is expected to cost about 250 jobs, with only a small number of staff to be retained for the site shutdown.The smelter in northern Tasmania had been in voluntary administration since March, with hopes raised in May when EY Parthenon revealed it had struck an agreement with a consortium to buy the business. However, those hopes unravelled after one of the deal’s key financial backers pulled out last month, and administrators confirmed this week the transaction would not proceed.“In the absence of both a commercially viable transaction, and the funding required to continue operations, the administrators have made the difficult decision to commence the orderly closure of the business with immediate effect,” EY Parthenon said.The administrators blamed part of the collapse on the pressures of running the operation in “a volatile global economy”.Workers were told of the decision on Thursday morning, with updates on redundancies expected next week. A smaller team will remain on site in the short term to wind down operations, manage the sale of remaining assets and meet environmental and regulatory requirements.“Employees are being provided with all support available during this difficult period,” the statement said.The closure marks a bitter end to a long-running battle over the future of the smelter, which had already been operating under a cloud for more than a year. Its former owner, GFG Alliance, scaled the business back to limited operations in May last year, pointing to a lack of ore supply. The Tasmanian government later stepped in with a $20 million loan intended to help purchase ore, although that material was delivered in October and was not used.After GFG’s financial troubles deepened, the plant was pushed into voluntary administration in March. State and federal governments then jointly contributed $9.6 million to keep workers paid while a buyer was sought.That search appeared to make progress in May when EY Parthenon named a preferred bidder involving Perth-based Adroit Capital and US private equity firm White Oak. But Adroit’s withdrawal last month cast serious doubt over the rescue plan, and administrators said this week the consortium had stopped pursuing the acquisition.The Tasmanian and federal governments described the outcome as a “sad day” for the region, with both now shifting their attention to workers and families facing the fallout.“This is deeply difficult news for the workers of Liberty Bell Bay and the communities of Bell Bay, George Town and northern Tasmania who have fought tirelessly for a better outcome,” Premier Jeremy Rockliff and federal Industry Minister Tim Ayres said in a joint statement.“Both the Commonwealth and Tasmanian governments are now focused on ensuring workers and their families are supported during this time, with immediate on-ground support now available.”Unions said the announcement had left workers shattered, with staff told they would be made redundant from Monday after a drawn-out campaign to keep the smelter alive.The Bell Bay Joint Unions said workers had been left “reeling” and shared their “sense of shock and disappointment” after the sale fell apart.They argued the loss of the operation would hit far beyond the plant gates, warning of “devastating effects on the local economy and community” if the closure is not stopped.The union group also urged both levels of government to keep working with the administrators in the hope a pathway could still be found to revive the sale process.