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MELBOURNE, March 10 (Reuters) - The administrator of Australia's Queensland Nickel (QNI) refinery said on Thursday it would terminate the employment of the bulk of the plant's 550 workers on Friday, but left the door open for a new management group to keep the operation running.
Administrator FTI Consulting, which was called into the struggling plant in January, was sidelined this week when the refiner's owner, mining magnate and politician Clive Palmer, wrested back management control of the plant.
FTI said in a statement the newly appointed manager may offer jobs to current employees, but it was "unaware of the terms or timing of those offers".
Palmer and his spokesman could not be immediately reached for comment.
QNI called in voluntary administrators following a prolonged slump in nickel prices CMNI3 , which hit a 12-year low last month.
However, Palmer this week found an 11th hour lifeline of $23 million in a conditional loan from an unnamed financier to support refinery operations.
The refinery, which has an annual capacity of 35,000 tonnes and buys most of its ore from New Caledonia, has wound down production since Feb. 29 due to insufficient ore stocks, cutting into its revenues.
The uncertainty over QNI's future led New Caledonia this week to consider lifting restrictions on the sale of nickel ore to China. Australian Workers Union (AWU) said it was not clear if Palmer's management body would reinstate employees.
"If he does that, then the plant has a chance. If not, it's all over," said AWU official Cowboy Stockham.