Future of nickel refinery shrouded in uncertainty

BESIEGED business man Clive Palmer was in Townsville yesterday inspecting his asset.

But whether this asset, the shutdown Yabulu refinery, is worth anything, apart from a lot of heartache, depends on your point of view.

One source suggested yesterday the refinery was Mr Palmer’s “insurance policy”.

Townsville Chamber of Commerce president Troy Popham provided the view it was highly unlikely the refinery would ever produce nickel again and that the debate should shift towards ensuring the site was safe in the event of a major storm.

Mayor Jenny Hill suggested if Mr Palmer were to sell the site, he should charge what he paid, “which was $ 1”.

Mr Palmer is being sued by liquidator PPB Advisory over debts relating to the collapse of the refinery last year.

PPB also wants to freeze Mr Palmer’s assets, such as the refinery, to preserve any value for creditors.

According to media reports, Mr Palmer lodged documents in the Queensland Supreme Court last week indicating the refinery could be worth $ 790 million if Mr Palmer were to spend $ 50 million to reopen it. But there are few people in Townsville who think it is worth that kind of money or that it can be reopened.

Mr Popham believes the days of the refinery are over because of its disrepair.

“I will be surprised if the refinery ever produces nickel again,” he said. “It’s unfortunate but it’s a fact of life.

“I think we need to focus on the environmental impact. If we were to have a big wet, what does that mean?”

He said the state should show leadership to take the steps needed to minimise any impact in the future.

Cr Hill said Mr Palmer should immediately sell the plant to a new owner.

“If someone ( were) going to open ( the refinery) it will be a multinational ( company) and not a Clive Palmer from the Gold Coast,” she said.