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UPDATE 1-Australia's Queensland Nickel calls in administrators

Published 18/01/2016, 10:22 am
© Reuters.  UPDATE 1-Australia's Queensland Nickel calls in administrators
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(Adds QNI, administrator comments, context)

SYDNEY, Jan 18 (Reuters) - Australia's Queensland Nickel (QNI) appointed voluntary administrators on Monday, just days after the company owned by mining magnate and politician Clive Palmer announced a restructuring after nickel prices plunged to decade lows.

QNI and the administrators, FTI Consulting, said they intended to run the business as usual, while FTI reviews the future of the company.

"We will undertake an urgent assessment of the financial position and ongoing viability of the company and its business operations," FTI Consulting Australia leader John Park said in a statement.

FTI said it would update creditors at a meeting expected in late January.

QNI last week cut more than 200 workers, saying it was forced to do so as the Queensland state government had refused to shore up the business.

Palmer, who bought the refinery from BHP Billiton BHP.AX BLT.L in 2009, said QNI had sought "minimal" assistance from the state, asking it to act as guarantor for a A$35 million ($24 million) bank loan to avert closure.

"I believe QNI has the ability to continue its operations and trade out of administration," QNI managing director Clive Mensink said in a statement on Monday.

The company has a production capacity of 35,000 tonnes a year.

Nickel producers are under pressure following a more than 40 percent slump in nickel prices CMNI3 last year to their lowest since 2003, with stockpiles having hit record highs largely due to a downturn in stainless steel demand. ($1 = 1.4594 Australian dollars)

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