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Clive Palmer takes back control of struggling Queensland Nickel refinery Clive Palmer takes back control of struggling Queensland Nickel refinery
(about 1 hour later)
Clive Palmer has taken back control of his collapsed Queensland Nickel refinery from administrators through a new company that says it has a $23m lifeline to keep the business running. Clive Palmer has taken back control of his collapsed Queensland Nickel refinery from administrators through a new company run by his nephew and political chief of staff.
Related: Queensland treasurer defends refusal to bail out Clive Palmer's nickel refineryRelated: Queensland treasurer defends refusal to bail out Clive Palmer's nickel refinery
In a surprise move that removes the operational control of administrators appointed to Queensland Nickel Pty Ltd, its Palmer-owned parent companies have replaced the ailing company with a new joint venture manager. In a surprise move that removes the operational control of administrators appointed to Queensland Nickel Pty Ltd, its Palmer-owned parent companies have replaced the ailing company with a new joint venture manager that says it has a $23m lifeline to keep the business running.
Queensland Nickel Sales Pty Ltd, which took over the running of the nickel plant at Yabulu on Monday, told administrators FTI Consulting it had a “conditional offer” for about $23m to keep the business going. Queensland Nickel Sales Pty Ltd took over the running of the nickel plant and associated port facilities on Monday, telling administrators FTI Consulting it had a “conditional offer” for about $23m to keep the business going.
FTI Consulting in a statement said the actions of Palmer, his nephew Clive Mensink and Queensland Nickel parents QNI Resources and QNI metals – of which Mensink is director – were “beyond the control of administrators”. A media statement released by Palmer said the new joint venture manager would be “headed by Clive Palmer”.
However, company documents show Palmer resigned as a director of Queensland Nickel Sales on 10 January. The remaining directors are his nephew Clive Mensink and his political chief of staff James McDonald, a onetime Palmer United party senate candidate for South Australia.
The switch of plant operator was possible because the plant and its site near Townsville were owned not by the failed Queensland Nickel but by its parent companies.
FTI Consulting said the actions of Palmer, Mensink and Queensland Nickel parents QNI Resources and QNI metals – of which Mensinck is director – were “beyond the control of administrators”.
Palmer said Queensland Nickel Sales secured its loan against “assets outside of Queensland Nickel Pty Ltd” which were not available to administrators.
“I have been working diligently for weeks to find a solution to secure the long term operations of the Yabulu Refinery and its workforce in the best interests of the Townsville economy,” he said.
Queensland Nickel Sales Pty Ltd is also owned by QNI Resources and QNI Metals.
FTI Consulting said administrators had given “strong consideration” to mothballing the Yabulu refinery – otherwise known as placing it into “care and maintenance” – because of concerns over “safety and environmental issues” and plant maintenance amid ongoing trading losses.
The takeover by the new company came on the same day that FTI Consulting nominated as the deadline for the Queensland government to decide whether it would guarantee an emergency $10m loan to keep the refinery running.
The state’s treasurer, Curtis Pitt, agreed only on conditions including that Palmer exited the business altogether.
Administrator John Park has previously indicated it was likely the government would be left to foot the entire bill for the environmental clean-up of the refinery, where waste ponds have allegedly previously contaminated Great Barrier Reef waters by overflowing.
Related: Clive Palmer's Queensland Nickel to stand trial over alleged toxic leaks
The new plant operator intended to offer all of Queensland Nickel’s current 550 employees jobs on the same terms and conditions, FTI Consulting said.
Administrators are due to release a report by 15 April outlining their recommendation to creditors of Queensland Nickel. They include almost 240 workers owed $16m in entitlements after being made redundant days before the company went into administration in January.
Queensland’s supreme court last month heard more than 800 creditors claimed $420m in debts owed by Queensland Nickel, including $235m by two other Palmer-owned companies.