Palmer buys Townsville BHP refinery

BHP has confirmed the sale of its Yabulu nickel refinery in Townsville, in north Queensland, to mining magnate Clive Palmer.

The value of the sale is being kept confidential but BHP says it believes there is enough working capital for the refinery to continue as a going concern.

BHP says it would write down the value of Yabulu assets by about $630 million and write off a further $220 million in unrecoverable tax benefits.

The sale is expected to be finalised by the end of the month and appears to have secured more than 700 jobs at the plant.

The Queensland Treasurer Andrew Fraser has welcomed mining magnate Clive Palmer's decision to buy the Yabulu nickel refinery, north of Townsville.

Mr Fraser has been embroiled in a defamation dispute with Mr Palmer, but has set that aside to applaud the news.

"He's now announced, and it's on the stock exchange, that he will be purchasing the Yabulu refinery," Mr Fraser said.

"That's fantastic news.

It would have been devastating to Townsville and the regional economy for the nearly 1,000 jobs on site to be lost up there.

"What this is about is a good result here that means that the refinery will continue and it means ultimately good news for Townsville," he said.

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Fri 3rd July 2009 - 10:31am