Clive Palmer’s nickel refinery faces administration, 800 jobs on the line

CLIVE Palmer’s nickel refinery could go belly-up today after he lost a court bid to force his former Chinese business partner to hand over $66 million.

PUP leader Clive Palmer (C) and PUP Senator Glenn Lazarus (R) arrive for a press conference at Parliament House ahead of the Intergeneratiolal Report to be released on Thursday, Canberra, Wednesday, March 4, 2015. (AAP Image/Mick Tsikas) NO ARCHIVING

CLIVE Palmer’s nickel refinery could go belly-up as early as today after his private company Mineralogy lost a court bid to force its former Chinese business partner to pay millions in “outstanding royalty payments”.

The failed court bid yesterday has cast doubt on the future of Queensland Nickel’s Yabulu refinery, which the WA Supreme Court heard yesterday was in a “worse than perilous position” and without the payment administrators would be called in, The Courier Mail reports.

Mineralogy and CITIC Pacific remain embroiled in a dispute over royalties from the massive Sino Iron project in Western Australia, with Mr Palmer’s company claiming it is owed millions by the state-owned miner.

While that battle continues, Mineralogy had applied to the Supreme Court of WA, seeking an immediate payment of $66 million ($US48 million), saying it and five other entities including Mr Palmer’s Queensland Nickel Pty Ltd would suffer “irreparable harm” if the request was refused.

The company’s Yabulu refinery, which processes nickel laterite ore imported from New Caledonia, employs about 800 people.

On Monday, Justice Paul Tottle dismissed the application.

“I am prepared to accept that there is a risk that QN may be placed into administration ... the New Caledonian interests are not at risk to the extent that is contended by Mineralogy,” Justice Tottle said.

He said there was some evidence to suggest National Australia Bank could give Queensland Nickel a loan, but “the avenues of finance that the bank was prepared to consider do not appear to have been pursued”.

A CITIC spokesman said outside the court that the company’s thoughts were with the workers of Yabulu.

“Our commercial relationship is with Mineralogy alone,” he said. “How Mr Palmer chooses to spend this money and how he chooses to manage his other ventures — whether it be golf courses, nickel mines, soccer teams, the Titanic 2 or robotic dinosaurs — is a matter for him.” Mineralogy was being sought for comment.

Townsville Mayor Jenny Hill last night told The Courier Mail it was “extremely disturbing news” for the refinery’s almost 800 employees and all reasonable steps needed to be taken to protect them.

CLOSURE ‘WILL BE CLIVE’S FAULT’

Queensland’s treasurer says if the refinery closes, it will be Clive Palmer’s own fault.

Curtis Pitt will meet with Mr Palmer later on Tuesday to discuss the future of the Yabulu refinery near. Mr Pitt said the government would stand ready to assist workers if needed but was surprised Mr Palmer was threatening to close the plant following months of assurances its future was safe.

“Let me be clear: any decision to close the Yabulu nickel plant will be the decision of Mr Palmer and his alone,” Mr Pitt said. “We want to find out the full state of affairs and have a sensible discussion about how this entity will remain viable into the future.” However he accused the mining magnate of issuing an ultimatum weeks before Christmas, putting the future of the refinery’s almost 800 workers in doubt.

“We are seeing people’s livelihoods are being part of some kind of a bargain with government,” Mr Pitt said.

Australian Workers’ Union Queensland Branch secretary Ben Swan said he’d held a meeting with Mr Palmer, among others, on Tuesday to discuss the need for government assistance to keep the Yabulu operation afloat.

Union representatives were told the deterioration of nickel prices had put pressure on the site but this was likely to improve with China planning to reduce output in the new year.

As such, any government help afforded to Queensland Nickel would be relatively short-term, Mr Swan understood. He said approaches made to Suncorp and Australia’s big four banks earlier had been rebuffed.

Others have suggested pleas to parliament for the future of the refinery is an elaborate bluff by company management.

“I’m not interested in debates if this is bluff or brinkmanship — we are not gamblers in my union and I’m not prepared to accept that this is all bluff and bluster,” Mr Swan said.

“We are calling the only secure sort of entity that can give any assurance to people — and that’s the state government.”

Originally published as Clive Palmer’s nickel refinery faces administration, 800 jobs on the line