Company created to seize control of Nickely refinery demanded money be paid to it instead

THE company created by Clive Palmer to seize control of his nickel refinery demanded money owed to Queensland Nickel be paid to it instead.

Clive Palmer in the House of Representatives Chamber at Parliament House in Canberra. Pic by kym Smith

THE company used by Clive Palmer to seize control of his own nickel refinery demanded money owed to Queensland Nickel be paid to it instead.

It meant money that should have been coming in to pay Queensland Nickel employees and its creditors was blocked.

Queensland Nickel Sales, which Mr Palmer substituted in as the refinery operator after QN went into administration, sent invoices to QN’s debtors and instructed them not to pay QN any money.

It meant QN was unable to collect money to pay its debts, as well as cover its wages, according to the report issued by administrators FTI Consulting.

“QNS issued invoices to QN debtors for ore supplied by QN and communicated with QN debtors instructing that no funds be paid to QN,” the report stated.

It further stated: “QNS ... would not take over the assignment for ore contracts, leaving QN having to exit existing supply contracts and incur significant loss due to cancellation penalties from shipping and ore suppliers”.

Mr Palmer did not respond to requests for comment.

Facing a potential ASIC investigation, Mr Palmer yesterday said he would reopen the north Queensland refinery and hire 1000 workers if nickel prices recovered this year.

“Queensland Nickel is certainly finished ... but if we’re talking about the refinery certainly it’s being kept in care and maintenance at the moment, and can start up within a short period of time,” Mr Palmer told ABC radio yesterday.

But the announcement was dismissed by unions as “cruel” hope for the 800 workers who lost their jobs since January.

“It would be somewhat cruel in the circumstances to ask the 800 workers and their family to hold out hope for a phoenix-like resurrection of the refinery,” AWU’s Ben Swan said.

The second creditors’ meeting about Queensland Nickel is due to be held in Townsville on Friday, where creditors are expected to vote to put the company into liquidation.

Mr Palmer, the federal MP for the seat of Fairfax, was notably absent from Parliament yesterday. But when asked where he was, he texted The Courier-Mail just before 5pm to say he intended to appear in the House later.

“(You) should watch and learn,” he texted.

Originally published as Company created to seize control of Nickely refinery demanded money be paid to it instead