Restarting refinery hinges on port access

ACCESS to the Port of Townsville remains the “biggest stumbling block” to restarting Yabulu nickel refinery, Clive Palmer says, as both the port and berth lessee Glencore say they are prepared to negotiate access, and legal proceedings between the parties play out in court.

Mr Palmer last month announced plans to reopen the refinery by processing nickel ore and tailings at the shuttered refinery.

But he needs access to the port for imports of nickel ore and exports of metals and so far has sought to get it by having the state use powers to resume a berth held by lease to mining giant Glencore.

The state has called on Mr Palmer to negotiate with the port, while the port said it was happy for the trade to resume but that it needed detailed plans and Mr Palmer needed to negotiate with berth lease holder Glencore.

Mr Palmer said he needed to confirm port access before committing to “a couple of hundred million dollars” worth of nickel ore supplies in New Caledonia, Indonesia and The Philippines.

“Port access … that’s the biggest stumbling block,” Mr Palmer said. “As soon as the port confirms to us, even by letter, that we can import ore and export product in Townsville then we will immediately employ 100 people that day.”

The port said QNI had expressed “general ambitions” but that they need a “detailed proposal”. Glencore said licences it provided to Queensland Nickel were terminated when that company was placed in liquidation in 2016.

“Mr Palmer has not approached us in relation to port access since announcing his intent to reopen the refinery,” the spokeswoman said.

“Queensland Nickel, now in liquidation, failed to pay significant harbour fees and defaulted on their licence agreement, which as a result, was terminated.”