Palmer seeks A$1.2bn from Qld Nickel administrators

PERTH (miningweekly.com) – Mining personality Clive Palmer on Tuesday announced that he was seeking A$1.2-billion in damages from the administrators of Queensland Nickel, alleging “illegal diversion” of the company’s funds and assets.

The creditors of Queensland Nickel last month voted in support of a recommendation by administrators FTI Consulting to wind up the company, with liquidators appointed to recover monies owing to the creditors.

The decision came after FTI released a report that claimed Palmer had used the company to fund a number of his other interests, including A$21.5-million to the Palmer United political party, a further A$200-million to support other companies associated with Palmer’s business portfolio, and that Palmer had scrapped some A$189-million in debt owing to Queensland Nickel.

The administrators also revealed that 787 former employees at Yabulu refinery and associated Townsville port facilities were due nearly A$72-million in redundancy entitlements, which the defunct Queensland Nickel was unable to pay owing to a lack of funds.

At the time when the administrators were appointed, Queensland Nickel had A$1.16-million available in its Australian bank account and a further $64 000 in its US account.

However, Palmer on Tuesday accused FTI and its senior MD John Park of aiding and abetting a breach of trust, and causing serious breaches of the Queensland Nickel joint venture (JV) agreement.

“Park has opposed the appointment of a special purpose liquidator by the commonwealth [government] to cover up his wrong doing and has sought to convince the creditors’ committee of Queensland Nickel to oppose it,” Palmer said.

“Park has done this for one purpose only and that is to hide his criminal actions and diversion of joint venture funding from a new liquidator. In short, Park lied in his report as administrator to creditors including the commonwealth [government].”

Palmer also blamed Park for closing down the Yabulu refinery, in Townsville, which resulted in some 550 workers losing their jobs, in addition to the 237 sacked before the appointment of FTI.

The refinery was closed after a JV between Palmer ventures QNI Resources and QNI Metals replaced Queensland Nickel as the manager of the refinery and port facilities.

The corporate restructure was undertaken without an environmental authority, which was only secured post the restructure.

Palmer alleged on Tuesday that if it had not been for the actions of Park, the refinery would still be operational.

“It was Park who caused an unlawful breach of trust and contract disregarding the lawful rights of joint ventures to close the refinery and dismiss the workforce causing social upheaval to fill his own pockets,’’ Palmer said.

"Park knows that if he had acted in accordance with the law, the closure and dismissal of the workforce didn't have to happen. Park and FTI need to be brought to account for their actions.”