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Clive Palmer's Queensland Nickel begins closing temporarily over lack of ore

  • Wednesday, March 2, 2016
  • Source:ferro-alloys.com

  • Keywords:Nickel ore
[Fellow]Clive Palmer's Queensland Nickel has begun shutting down temporarily because of a lack of ore to process.

Clive Palmer's Queensland Nickel has begun shutting down temporarily because of a lack of ore to process.

The revelation comes after the ABC revealed administrators FTI Consulting, appointed to run the nickel refinery near Townsville, had told the State Government it could shut within a week if a $10 million loan facility was not guaranteed.

The refinery's shutdown is due to difficulties importing ore from New Caledonia and the problem is contributing to Queensland Nickel's urgent cash flow problems.

It is understood FTI Consulting told Queensland Treasurer Curtis Pitt it could not continue incurring liabilities and it would be forced to shut down the operation as early as Monday.

The business would then be liquidated.

Mr Pitt has written to his Federal Government counterpart, Scott Morrison, asking for assistance.

However, Mr Morrison has responded by suggesting Queensland Nickel's future was a state issue.

"The Government remains very sympathetic to the situation faced by the workers at Queensland Nickel and the situation the owner has left them in," Mr Morrison said.

"We will obviously consider any matters put forward to the Government but also note this is predominantly an issue for the Queensland Government and we would consider issues in this context."

Queensland Premier Annastacia Palaszczuk said she was concerned about the workers.

"We need the Federal Government to make it clear: what is their commitment to Townsville and the workforce in Townsville?" she said.

"We also need to see what Clive Palmer's commitment is — Clive Palmer is linked to this company, intimately, and he needs to let Queenslanders know what assets he is putting on the table, first and foremost."

Queensland Nickel was put into voluntary administration on January 17 after sacking 237 employees.

Mr Palmer said he was not involved.

"The administrators have all the authority," he said.

  • [Editor:Sophie]

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