Photo by: Bloombeg
PERTH (miningweekly.com) – The embattled Queensland Nickel on Monday announced that the company had gone into voluntary administration, as it struggled to stay afloat.
MD Clive Mensink said that Queensland Nickel would continue with its operations while under administration, saying that it would be “business as usual” for employees.
“I believe Queensland Nickel has the ability to continue its operations and trade out of administration,” Mensink said.
“Queensland Nickel plays an important role in North Queensland’s economy and I believe that will remain the case in the future once restructuring is completed in this volatile commodity environment.”
The decision to be placed under administration follows just days after Queensland Nickel announced that 237 workers would be made redundant at the Townsville operation.
The company said at the time that the decision was necessitated by announcements by the Chinese government that it was injecting A$6.6-billion into its own metals industry and the Canadian government waiving electricity charges for its metals industry, making it difficult for Queensland Nickel to compete in its current operational structure.
Following a notice of the redundancies, the Queensland government mobilised a rapid response team to assist the 237 affected workers to help secure their rights and entitlements, along with other services including financial advice and employment assistance.
“237 hardworking Queenslanders have lost their jobs through no fault of their own, and that’s a terrible way to start 2016,” said State Development Minister Dr Anthony Lynham.
“These are tough time for these workers and their families, but there is help at hand and we’re on an all-out effort to give those affected the support they need.”
Queensland Nickel had previously vowed to do all in its power to ensure that the company remained afloat, and that worker wages would be paid, despite rumours that the company had called in an insolvency expert at the nickel refinery.
The company at the end of last year flagged financial difficulties, and called on the Queensland government to provide a short-term guarantee to act as security, allowing the miner to raise A$35-million.
However, the state government had been unwilling to provide this guarantee.