Clive Palmer not seeking Townsville nickel refinery licence

Clive Palmer has told the Qld government he doesn’t want a crucial licence needed to legally run his refinery.

Clive Palmer dines Ming's House Chinese Yum Cha & Malaysian Restaurant in Townsville. Picture: Shae Beplate.

Clive Palmer has quietly told the Queensland government he doesn’t want a crucial licence he needs to legally run his cash-strapped nickel refinery, fuelling fears the plant will not reopen.

Mr Palmer yesterday visited the Townsville refinery for the first time since nearly 800 workers lost their jobs in two mass-sackings this year. He had lunch at a yum cha restaurant before dodging questions from journalists and angry ex-employees.

A spokesman told The Australian the federal MP for Fairfax had ventured north to “have a coffee with his nephew, Clive Mensink”.

Mr Mensink ran the plant before Queensland Nickel collapsed into voluntary administration in January, owing more than $100 million to trade creditors and $70m in employee entitlements.

Mr Palmer replaced QNI as refinery manager with another of his companies, Queensland Nickel Sales, earlier this month.

Voluntary administrator John Park yesterday said QNI looked destined for liquidation because neither Mr Palmer’s companies nor non-profit Sister City Partners had lodged promised rescue plans for the operation.

“At this stage, we have not ­received any DOCA (Deed of Company Arrangement) and so ... we will be recommending liqui­dation,” Mr Park said.

A meeting of creditors will be held on April 22 in Townsville to vote on the future of the company.

In the meantime, the refinery is shut down and even Mr Palmer’s indication he would reopen it on July 31 looks shaky.

The Australian can reveal Queensland Nickel Sales quietly withdrew its application to transfer a vital Major Hazard Facility licence held by QNI to the new management company. A spokeswoman for Industrial Relations Minister Grace Grace confirmed Mr Palmer’s company had indicated “it was not seeking a transfer” of the authority on March 18.

The state government is now in an awkward stalemate. The ­licence is still held by QNI, which is in administration and is no longer the manager of the plant.

Mr Palmer did not answer questions from The Australian about whether he would lodge a DOCA and why he had withdrawn the licence transfer.

In Townsville yesterday, news of Mr Palmer’s visit spread quickly on social media pages used by his ex-employees. Several workers waited outside the airport to confront the businessman as he left north Queensland yesterday afternoon, but he was ushered in a back door. One source close to the company said: “He’s a brave man for showing up in Townsville.”