Queensland Nickel is among the largest nickel refineries in Australia.
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The hearing decision comes amid speculation Queensland Nickel could fall into administration after another Palmer company, Mineralogy, lost a legal bid to have an estranged Chinese business partner pay millions in “outstanding royalty payments”.
THE future of Clive Palmer’s north Queensland nickel refinery rests in the hands of the state government, his company says.
A letter to Queensland Nickel’s 700-odd employees started circulating on Tuesday morning calling on all staff to pull together to save the site.
“I left the meeting reassured that the government has been looking at what it can and can’t do in the way of assistance should the refinery face closure”, Mayor Jenny Hill said in a statement after talks with the treasurer on Thursday.
CITIC’s Australian spokesman Rob Newton expressed sympathy for the refinery’s workers but said his company had paid millions of dollars to Palmer and Mineralogy over the years.
Mineralogy argued in court that if the multi-million-dollar advance on royalties was not granted, Queensland Nickel – a separate business also owned by Palmer – would “suffer irreparable harm” and risk hundreds of jobs, highlighting the perilous state of some firms as metals prices flounder.
Despite Supreme Court judge Paul Tottle accusing the mining magnate of exaggerating his “dire” financial position, the Townsville-based refinery is close to being placed in receivership, resulting in the loss of 800 jobs.
Queensland Nickel managing director Clive Mensink has called for an urgent meeting with Premier Annastacia Palaszczuk and Treasurer Curtis Pitt to discuss the refinery’s future.
Concerns first surfaced in October about Queensland Nickel when Palmer met with the state government, but he denied seeking a loan.
Queensland Nickel, which runs the refinery, has reportedly been seeking a short-term $40 million “guarantee” from the government.
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The ABC’s AM program has been told that a Queensland Government-commissioned audit by KPMG of the company’s business operations and financial position showed it was able to continue operating and trade out of its financial difficulties. “Take Clive Palmer out of it, this is a company that delivers jobs in Townsville and that’s what my government is focused on”.
