Palmer Resumes Management Control of Embattled Queensland Refinery

The Yabulu refinery, in Queensland, is back under the management of mining magnate Clive Palmer, who on Monday announced that funding was secured to support the business operation of one of Australia’s biggest nickel refineries.

A joint venture between QNI Resources and QNI Metals, Queensland Nickel Sales, on Monday replaced Queensland Nickel, which went into voluntary administration in January, as the manager of the refinery and associated Townsville Port facilities. Queensland Nickel administrators FTI Consulting confirmed the change of management control and said that the decision to replace Queensland Nickel as manager was beyond its control.

Queensland Nickel Sales had received a conditional offer for about $23-million of funding to support the refinery. “The funding facility will be secured against assets outside of Queensland Nickel Pty Ltd which were not available to the Voluntary Administrators in the discharge of their duties as manager of the Yabulu refinery,” Palmer said in a statement. FTI Consulting has considered placing the refinery in care and maintenance owing to trading losses and concerns over plant maintenance, safety and environmental issues.

However, Palmer announced that Yabulu would remain open under the management of Queensland Nickel Sales and that all current employees would be offered employment on the same terms and conditions as they were currently engaged. “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. “I have been harshly vilified with false allegations in respect of this matter.

The Queensland government and the Treasurer Curtis Pitt have done nothing to protect the livelihoods of the people of north Queensland. “While we have fought hard to keep the Yabulu Refinery operating we have seen the Palaszczuk government sitting on its hands while 22 000 jobs have been lost in the Queensland resources industry over the past 12 months,” Palmer said. Palmer had previously requested state government support for the struggling refinery to secure its 2 500 jobs.

Meanwhile, FTI Consulting said that it would continue to act as the administrator of Queensland Nickel. Its role, however, would shift to evaluating proposals tendered for the potential future restructure of the company or alternatively, liquidation of the company. This would include the continuing investigation into the past management of the company and the underlying reasons for its insolvency. FTI Consulting aimed to have a recommendation report ready for creditors by April 15. 

• [Editor:Juan]