Mining billionaire Clive Palmer buys nickel refinery from BHP

Queensland mining billionaire Clive Palmer has made one of his most audacious deals yet, buying the Yabulu nickel refinery in north Queensland from BHP Billiton for an undisclosed sum.

The future of Yabulu, which employs around 950 workers, has been in doubt since BHP closed its $2.7 billion Ravensthorpe nickel mine in Western Australia. The mine provided much of the feedstock for the Yabulu refinery.

While the price of the deal is not known, BHP will take a big haircut on its nickel investments. It will write down the value of Yabulu assets by $500 million and write off a further $175 million in unrecoverable tax benefits.

The sale is expected to be finalised by July 31.

Palmer was valued at $3.42 billion in this year’s BRW Rich 200. He holds extensive iron ore resources in Western Australia, oil and gas investments in the Pacific Islands and coal investments in Queensland.

A key to the expansion of Palmer’s resources businesses has been his close association with Chinese investors.

But earlier this week, one of Palmer’s London-based companies, Gladstone Pacific Nickel, was forced to dump plans for a $3.65 billion nickel refinery project in Gladstone, after losing the backing of Chinese partner, China Metallurgical Construction Corp.

However, now Palmer has picked up Yabulu, the setback is likely to be quickly forgotten.