👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

Palmer wrests back management control of Qld nickel refinery

Published 07/03/2016, 05:41 pm
Updated 07/03/2016, 05:50 pm
© Reuters.  Palmer wrests back management control of Qld nickel refinery

(Adds detail)

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)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.