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MELBOURNE, March 7 (Reuters) - Australian mining magnate Clive Palmer has taken back management control of his Queensland Nickel refinery, securing a conditional loan of A$23 million ($17 million) to support the business, Palmer and QNI's administrators said on Monday.
Queensland Nickel, one of Australia's biggest nickel refineries, went into voluntary administration in January after a slumping metal price pushed it into financial difficulty.
"The Yabulu Refinery will remain open under a new joint venture manager, Queensland Nickel Sales Pty Ltd, which will be headed by Clive Palmer," Palmer said in a statement.
Queensland Nickel Sales would take over as manager of operations at the Yabulu Refinery and associated port facilities with "immediate effect," Palmer and QNI administrator FTI Consulting said in separate statements.
FTI said it had been advised that the new management unit, which is owned by the plant's related parent companies, QNI Resources Pty Ltd and QNI Metals Pty Ltd, had a conditional offer for some $23 million of funding to support the plant's operations.
The funds would be secured against assets outside of the company that had not been available to administrators, it said.
The decision to install the new manager was determined by Palmer's nephew Clive Mensink, FTI said, a director of both parent companies.
"The actions of Clive Palmer, Clive Mensink, and their related entities are beyond the control of the Administrators," FTI Consulting said.
FTI would continue to act as administrator without management control, and would focus on evaluating plans for restructure or liquidation. It would also continue investigating the company's management and reasons for its insolvency.
Administrators had been strongly considering placing the Yabulu Refinery on care and maintenance due to ongoing trading losses and their concerns over plant maintenance, safety and environmental issues, it said, adding that a report to creditors is due to be issued on or before 15 April 2016.
The deal came as Australia's Queensland state government on Monday laid down the terms under which it would consider a A$10 million loan to the refinery, including Palmer's departure.
($1 = 1.3501 Australian dollars)