‘We’re open for business’: banks reject Clive Palmer claims

The big four banks have rejected Clive Palmer’s claim they are ­refusing to lend to Queensland ­resources companies.

Clive Palmer claimed he was being ’personally attacked ­because I am a politician’. Picture: Virginia Young

The big four banks have rejected Clive Palmer’s claim they are ­refusing to lend to Queensland ­resources companies, as political brinkmanship over his beleaguered nickel refinery intensifies.

In a toughening of language ­directed at the resources magnate, Queensland Premier Annastacia Palaszczuk yesterday challenged Mr Palmer to be upfront with the refinery’s 800 workers and throw open the books of Queensland Nickel to the government.

“My No 1 concern is the workers of the nickel refinery in Townsville,” Ms Palaszczuk said. “Why should they have this cloud of uncertainty over them in the lead-up to Christmas?

“The onus is on Mr Palmer to come out and give a reassurance to those workers about what his plans are.”

Mr Palmer claimed he was being “personally attacked ­because I am a politician”. He said Queensland Nickel was in a “strong position”, with a “small deficit in cash flow” caused by the low nickel price.

Mr Palmer’s comments come three days after his lawyer told a WA court the company would be in a “worse than perilous” situation if it did not receive $US48 million from Mr Palmer’s ­estranged Chinese business ­partners.

The court refused to order the payment, despite the lawyer’s warnings that Queensland Nickel would be forced to call in administrators, sack its 776 workers, and close the refinery.

“The fact is not a single job needs to be lost at the Townsville refinery if fairness and common sense prevails,” Mr Palmer said yesterday.

He said Queensland Nickel ­approached the big four banks for a $35m overdraft, but was denied despite “unencumbered assets of nearly $2 billion’’. “Banks are not supporting the resources sector, which is in a downturn cycle, as a matter of policy and this is a major problem,’’ Mr Palmer said.

He said Queensland Nickel then approached the state government for help, and met the banks with Under Treasurer Jim Murphy, head of the state’s Treasury.

“The banks reconfirmed their policy in relation to lending to Queensland resource companies and stated if the Queensland government acted as guarantor for the small amount of money being sought against unencumbered ­assets of $1.95bn, the funds would be forthcoming,” Mr Palmer said.

The Australian understands Mr Murphy met two banks with Mr Palmer. No arrangement has been reached between Queensland Nickel and the state government, but the big four banks — and the Queensland Resources Council — have rejected Mr Palmer’s suggestions they have a policy that prevents lending to resources companies.

“I can confirm we do not have any such policy in place,’’ a NAB spokesman said.

A CBA spokeswoman pointed to figures from the last ­financial year that showed it had loaned $29.3bn to the resources sector — the equivalent of 3 per cent of the bank’s total commercial exposure.

Westpac said it remained “committed to supporting the natural resources sector”.

“We take a long-term view of the sector when assessing project financing and bank customers through ­cycles,’’ a spokeswoman said.

“All projects we finance need to meet our credit criteria and our rigorous risk assessment ­standards.”

An ANZ spokesman said: “We continue to support the Australian resources sector, including in Queensland”.

He said ANZ had never had a policy not to lend to the ­Queensland or Australian resources sector.

Queensland Resources Council boss Michael Roche said there was no blanket ban by banks.

“We know the banks are and ­always have been careful about their lending policies, but from our contact with the Australian banking majors, there is no blanket policy against lending to resources companies,” Mr Roche said.