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Morrison refuses to bail out Palmer's Queensland Nickel

Friday, 4 Mar 2016 16:16:25

Clive Palmer's Queensland Nickel is facing closure. (ABC News: Nick Haggarty)

Treasurer Scott Morrison has refused to bail out Clive Palmer's Queensland Nickel, leaving the fate of the ailing business in the hands of the State Government.

The ABC understands Mr Morrison turned down a request by his Queensland counterpart for financial assistance.

The administrators appointed to run the refinery near Townsville approached Curtis Pitt on February 25 asking his Government to guarantee a $10 million loan.

FTI Consulting warned the State Government it could not continue incurring liabilities after it had difficulty acquiring ore from overseas to process.

Part of the structures inside the Yabulu nickel and cobalt plant. Photo: Queensland Nickel was Townville's biggest private employer before the redundancies. (AAP)

The shortage forced the plant to begin winding down its operations temporarily on Tuesday, compounding its cash crisis.

Mr Pitt then contacted Mr Morrison but was rebuffed this afternoon.

"The Treasurer is responding directly to the Queensland Treasurer in relation to these matters and we will be continuing to pursue any issues directly with the Queensland Government," a spokesman for Mr Morrison said in a statement.

FTI Consulting was appointed to run Queensland Nickel when it was put into voluntary administration on January 17 after sacking 237 workers.

The State Government is considering the risk in guaranteeing the loan, and is likely to make a decision over the coming days.

The company's collapse would be devastating to the North Queensland economy; QNI was Townsville biggest private employer before the redundancies.

The company donated more than $21 million to Clive Palmer's political party in the past two years.

AustraliaPlus


 

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