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An Australian government has dismissed the notion one of Australia's largest nickel refineries was forced to sack workers because of a lack of support.
The Clive Palmer-owned Queensland Nickel Pty Ltd had been in discussions with the Queensland state government over a 35-million-Australian dollar (24.33-million-U.S. dollar) loan guarantee to help ensure the ongoing employment of some 700 workers, but was refused.
Queensland Nickel managing director Clive Mensink - Palmer's nephew - said the lack of government support was key to the producer being forced to "restructure its operations", forcing the redundancy of 237 workers.
"Because of the current nickel price and because of the failure of our own government to offer any support for our company's continued operations in Townsville, today Queensland Nickel has been forced to make 237 workers redundant," Mensink said on Friday.
The Queensland state government however rejected the company's assertions, arguing self-declared billionaire-turned politician Clive Palmer refused to hand over full financial statements to his business empire proving no other option.
"And we could not in all good conscience hand over money to a private company without full financial due diligence," Queensland state acting premier Jackie Trad told reports.
Palmer's business empire has been under significant financial stress following a failed court bid to force estranged business partner CITIC group to pay a 48- million-U.S. dollar advance on disputed royalties from a joint iron ore project.
Lawyers for Palmer's Mineralogy argued it and five other entities, including Queensland Nickel would suffer "irreparable harm" if the request was refused.
