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Embattled nickel miner Queensland Nickel on Friday announced that 237 workers would be made redundant at its Townsville operations.

The company said the decision was necessitated by announcements by the Chinese government that it was injecting A$6.6 billion in to its own metals industry and the Canadian government waiving electricity charges for its metals industry, making it difficult for Queensland Nickel to compete in its current operational structure.

The Queensland governments has made it clear despite the nickel price being the lowest in 15 years it has no interest in assisting Queensland Nickel in providing continued employment for over 800 families in Townsville, Queensland Nickel MD Clive Mensink said.

This stands in contrast to the A$ 40 million a year cheque the Queensland Treasury writes each year to a multinational group for their Gladstone operations.

Because of the current nickel price and because of the failure of our own government to offer any support for our company’s continued operations in Townsville, today Queensland Nickel has been forced to make 237 workers redundant, Mensink said.

Queensland Nickel had previously vowed to do all in its power to ensure that the company remained afloat, and that worker wages would be paid, despite rumors that the company had called in an insolvency expert at the nickel refinery.

Mensink on Friday reiterated this promise, saying that over the next few days, the company would be taking steps to do whatever it takes to continue the company’s contribution to the Townsville community.

We now need to concentrate on ensuring that the 2000 additional jobs that Queensland Nickel operations sustain in Townsville can continue, he added.

• [Editor:Juan]