Clive Palmer refinery: Taxpayers face multi-million-dollar bill to clean up Queensland Nickel site

Source ABC Network:

Exclusive by the National Reporting Team's Mark Willacy


Clive Palmer
Photo: Rehabilitation costs at Clive Palmer's refinery could be "upwards of $300 million". (ABC News: Rebecca Trigger)

Related Story: Government puts up $500k for sacked Queensland Nickel workers



Map:  QLD

As well as potentially paying out sacked workers' entitlements, taxpayers could be forced to stump up tens of millions of dollars to clean up the site of Clive Palmer's north Queensland refinery if the company cannot trade its way out of voluntary administration.



Key points:
•The clean-up bill at the Queensland Nickel may reach $40 million, Government says
•Opposition claims it could reach $300 million
•Taxpayers could be forced to foot the cost of rehabilitation
•The Environment Department does not hold any bond for the site



Queensland Government sources have told the ABC that the cost of remediating the Queensland Nickel site, at Yabulu, could be anywhere from $25 million to $40 million.

Former owner BHP believed the environmental clean-up cost may exceed $100 million, while the Queensland Opposition said the clean up bill could be "upwards of $300 million".

Opposition environment spokesman Stephen Bennett said taxpayers were in danger of being left to foot the cost of rehabilitation if Queensland Nickel was forced to close the refinery.

Queensland Nickel called in administrators earlier this week, and the state's Environment Department has told the ABC that it does not hold any environmental bond for the refinery site "because financial assurance is not applied to businesses of this type".

"While the state does not hold a financial assurance bond, the company's environmental authority contains conditions to ensure that rehabilitation is conducted in accordance with [department] guidelines," the department said.

The department said there were also specific requirements for Queensland Nickel to rehabilitate the refinery's huge tailings dams, which sit on the edge of the Great Barrier Reef World Heritage Area.

The dams contain high levels of ammonia and other waste.

Premier Annastacia Palaszczuk said she had asked for a report on the state of the site.

"We've already asked the Department of Environment, which comes under Resource Management, to be looking into that matter. They are taking that as a key issue and we'll be updated on that at Cabinet next Monday," she said.

Plant's closure a 'risk' to Great Barrier Reef

Townsville Mayor Jenny Hill expressed concern that there could be repercussions for the Great Barrier Reef if the plant were to close.

"While the plant is operating we have people on site and part of their role is to maintain the assets," she said this week.

"If the plant wasn't operating there is a greater risk for the reef and the environment."

Queensland's Environment Department said that under Queensland Nickel's environmental authority there were specific requirements for the company to restore disturbed areas so that they were "safe to humans and wildlife".

Part of the structures inside the Yabulu nickel and cobalt plant.
Photo: Clive Palmer's company took over the Yabulu nickel plant in 2009. (AAP)



But the Australian Financial Review yesterday reported that six months before Queensland Nickel went into voluntary administration, Mr Palmer's company decided it did not need to clean up fully around the Townsville plant and only needed to restore the site so it was suitable for "industrial use".

The refinery at Yabulu has had a chequered environmental history.

Last month a magistrate ordered Queensland Nickel to stand trial for alleged breaches of environmental regulations. It is alleged one of the refinery's tailings ponds overflowed last year.

The company has indicated it will plead not guilty to the charges when the case returns to court this year.

Clives wont be thats for sure..

hows the titanic mk11 going???

cods wrote on Jan 20^th, 2016 at 4:15pm:


Funny thing Cods, the other day on Mythbusters about the movie Titanic, and whether Rose and Jack both could have been saved on that floating wooden panel, rather than just one person....in the end, if a life jacket is tied around the panel so it's on the underneath, is the only way it could have stayed afloat with both of them....
Then it got me thinking, wasn't Clive Palmer doing the Titanic 2, and haven't heard much about it of late.

I often think a name or something relative to an ill fated vessel, kind of gives me that ominous feeling.

Sorry, have changed the subject

Aussie wrote on Jan 20^th, 2016 at 4:18pm:


He has already built the Titanic II.  Then he called it PUP.  Same outcome. Arrogance, mass expense and utter failure.

Enjoying your PUP membership, Aussie?

cods wrote on Jan 20^th, 2016 at 5:01pm:


Do you follow any news at all cods?  Dio Wang today was reported confirming his support for Palmer.  Membership of PUP was free when I joined.  I insisted on paying a fee, and was charged either $10.00 or $20.00.....can't remember which.

If he has only about 25 Members, cods, the Party would be de-registered.  Do you enjoy just making pure crap up and posting it?

Gives some sort of feeling of having made a valuable contribution to a discussion, does it?

Aussie hitched himself to Palmers star imagining he would soon be amongst the movers and shakers instead he has saddled himself to a rapidly deflating buffoon.

Secret Wars wrote on Jan 20^th, 2016 at 5:42pm:


I hitched myself to a Party which destroyed Campbell Newmann and successfully disrupted the cosy little duopoly which is what we have in Canberra.

Whether they are PUP Senators or not now, the presence of Lambie and Lazarus in the Senate (thanks to PUP) took away the absolute power the Libs would otherwise have had in this Country.

If I have got any of that wrong, I look forward to you pointing me in the direction of enlightenment.  Go on, have a go Elde Fruit.  I am all eyes.

Secret Wars wrote on Jan 20^th, 2016 at 5:55pm:


Not one bit.  PUP has destroyed Newmann's Government and made it not so easy for the Libs to do what they want in Canberra.  I'm quite happy with those two outcomes, thank you very much for your so obvious and sincere concern for me.