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Category: Government and Politics / Political Parties / Clive Palmer / Federal Parliament / Mining Industry

Document proves I was not a shadow director, Palmer says

Wednesday, 13 Apr 2016 16:20:00 | George Roberts

Mr Palmer said millions in donations to his party should have been listed as coming from his other companies, not Queensland Nickel. (ABC: Damien Larkins)

Clive Palmer has released a Joint Venture Agreement he says proves he was not acting as a shadow director of his beleaguered Queensland Nickel refinery.

He also says millions of dollars in donations to his Palmer United Party should have been listed as coming from two of his other companies, not Queensland Nickel Pty Ltd.

On Tuesday, administrators FTI Consulting recommended Queensland Nickel be liquidated, as it owes nearly $200 million, including about $73 million to about 800 sacked workers, a figure that may have to be funded by taxpayers.

Among other things, FTI Consulting's report to creditors concluded that Mr Palmer had acted as a director of the company, alongside the appointed director, his nephew Clive Mensink.

"Both Mr Mensink and Mr Palmer, in our view, appear to have been reckless in exercising their duties and powers as directors of QN," the report said.

If found to have been a "shadow director" Mr Palmer could be liable for the operation of the company in the same way an appointed director is.

Queensland Nickel 'did not own refinery'

Today, Mr Palmer told the ABC the Joint Venture Agreement showed Queensland Nickel, which went into administration in January, was merely "contracted to carry out services" to two other companies he owns.

What next for Queensland Nickel?


The administrators have recommended liquidation, but what does that mean for workers, creditors and Clive Palmer?

He said those companies, QNI Resources and QNI Metals, own the physical refinery at Yabulu and had a joint venture that saw Queensland Nickel run the plant.

Mr Palmer said his role was that of a member of the Joint Venture Owners Committee, saying the Joint Venture Agreement showed Queensland Nickel was contracted to operate the plant at the direction of that committee.

He said the agreement stipulated the committee "direct, monitor and give instructions" to the refinery manager, but argued that did not make him a shadow director.

The agreement was first signed in 1992, long before Clive Palmer took over the plant from BHP, but Mr Palmer said the agreement and structure of the operation still applied today despite not being set up by him.

Trading as insolvent?

Mr Palmer said FTI Consulting's assertion that Queensland Nickel was trading as insolvent last year was not true.

He claimed the assertion related to a default notice on a payment owed to freight train operator Aurizon.

Mr Palmer said that ignored an extension granted by Aurizon that meant the payment was not overdue until January 18, when the company was placed into administration.

Political donations 'should have been listed' as from other companies

Mr Palmer's political party, the Palmer United Party (PUP), has received more than $20 million from Queensland Nickel Pty Ltd.

Now that the refinery operator has gone into administration there is pressure on Mr Palmer to personally pay back creditors, including the $73 million in entitlements owed to sacked workers.

Mr Palmer said the donations to PUP listed as being from Queensland Nickel "should have been listed as the other two," referring to QNI Resources and QNI Metals.

He said they were private companies, wholly owned by him, and "have no debt" are "not in administration" or in danger of being liquidated.

External Link: Queensland Nickel Joint Venture Agreement document

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