Type Private Founded 1971 Products Nickel | Industry Refinery Headquarters Townsville, Australia | |
Fate In voluntary administration, undergoing creditors' liquidation | ||
Queensland Nickel is a company owned by businessman and politician Clive Palmer. Queensland Nickel owns and operates the Palmer Nickel and Cobalt Refinery at Yabulu in North Queensland. On 19 January 2016 the company entered into voluntary administration. In April 2016 the companies' creditors voted for liquidation.
Contents
History
The company was established in 1971 and Palmer acquired the refinery in 2009 from British-Australian company BHP Billiton.
A freedom of information request by the Northern Queensland Conservation Council in 2014 showed that Queensland Nickel discharged nitrate-laden water into the Great Barrier Reef in 2009 and 2011—releasing 516 tonnes (508 long tons; 569 short tons) of toxic waste water on the latter occasion. In June 2012, Queensland Nickel stated it intended to release waste water, continuously for three months, "at least 100 times the allowed maximum level as well as heavy metals and other contaminants". A Great Barrier Reef Marine Park Authority (GBRMPA) briefing stated the company had "threatened a compensation claim of $6.4bn should the GBRMPA intend to exert authority over the company's operations". In response to the publicisation of the dumping incidents, the GBRMPA stated:
We have strongly encouraged the company to investigate options that do not entail releasing the material to the environment and to develop a management plan to eliminate this potential hazard; however, GBRMPA does not have legislative control over how the Yabulu tailings dam is managed.
Financial troubles
In recent years, the company experienced financial difficulties. Despite having previously ruled-out requesting government funding, Palmer requested taxpayer-funded assistance from the Queensland Government in late 2015, however this was rejected, citing the refusal of the company to share full details with the government and its large donations to Palmer's Palmer United Party. The company's ownership was later transferred to a new company named Queensland Nickel Sales Pty Ltd in a joint venture between two of Clive Palmer's companies, QNI Resources Pty Ltd and QNI Metals Pty Ltd, with the directorship going to Palmer's nephew Clive Theodore Mesnick.
On 15 January 2016 the company terminated 237 workers. The company blamed poor nickel prices, which were at a twelve-year low, and the refusal of the Queensland Government to guarantee a loan of A$35 million for the redundancies. Despite the financial troubles, Queensland Nickel donated more than $20 million to the Palmer United Party in two years including a donation of $288,516 days before the workers were terminated.
In early April 2016 the administrators, FTI Consulting, found that the company had "incurred debts of $771 million after going insolvent in November."
On 22 April 2016 the companies' creditors voted to liquidate it.