ASIC looks into $2.5m transfer to Clive Palmer’s Mineralogy

The transfer of $2.5 million to Clive Palmer’s flagship company has prompted investigations by the corporate regulator.

The transfer of $2.5 million to Clive Palmer’s flagship company has prompted investigations by the corporate regulator.

The Australian Securities & Investments Commission has asked key staff to provide a range of documents about the decision to transfer the sum from Gladstone Pacific Nickel, of which Mr Palmer controls about 95 per cent, to Mineralogy, his wholly-owned flagship company.

The Australian revealed last week that Gladstone Pacific Nickel, in which Mr Palmer is estimated to have sunk and lost almost $30m, is also being pursued by tax authorities in New Caledonia for unpaid taxes. Recovery actions in the South Pacific French territory have started.

Gladstone Pacific Nickel’s latest financial accounts, which were lodged with ASIC earlier this month, hold out little hope of a revival for the company.

It is seeking refunds of deposits on land once earmarked for a nickel and cobalt refinery near the town of Gladstone, on the Queensland coast, about 530km north of Brisbane. The cash that remains in Gladstone Pacific Nickel has been funding directors’ fees of $360,000 for one meeting, as well as the salaries of two employees. But the $2.5m transfer of cash was made possible after a decision to strike a royalty and mining agreement — despite there being no nickel mining or royalties.

Mr Palmer and Mineralogy, which is two years overdue in lodging its accounts with ASIC, were the major beneficiaries of the transaction, while the remaining shareholders of Gladstone Pacific were being “asset-stripped”, sources said.

The nickel company was described as “currently non-revenue generating”.

If additional funds were not raised “there is significant uncertainty that it may not be able to continue as a going concern”.

Mr Palmer was reading poetry in Brisbane yesterday and did not respond to The Australian’s requests for comment.