Palmer buys Townsville BHP refinery

The Yabulu nickel refinery in Townsville in north Queensland has been sold to mining magnate Clive Palmer.

BHP Billiton scaled back operations at the Yabulu Refinery in January, prompting fears that it might close.

The refinery employs 950 workers.

BHP's president of the stainless steel division, Jimmy Wilson, says Yabulu has been sold to Queensland mining figure Clive Palmer for an undisclosed amount with the promise of keeping the refinery open.

"We made very effort to ensure the business had sufficient working capital," Mr Wilson said.

Clive Palmer says he believes he got a good deal with the purchase of the refinery.

Mr Palmer says he plans to operate it for the long term and it will be welcome news for the 940 staff.

"Well no one can guarantee anyone a job in any circumstance but we've certainly got no plans at this time to dismiss anybody," Mr Palmer said.

"We probably will restructure the workforce.

"Our main aim will be to go up to the plant and listen to what they've got to say.

"They've been in a very large organisation for a very long time," Mr Palmer said.

The sale is a reprieve from bad economic news in north Queensland and Townsville Mayor Les Tyrell is relieved.

"The alternative of closure was not something we were looking forward to," Cr Tyrell said.

The sale is expected to be finalised by the end of the month.

The Queensland Treasurer, Andrew Fraser, has welcomed the purchase.

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.

More Quotes and Company Information:BHP BILLITON (ASX: BHP.ax) ... read original article
Fri 3rd July 2009 - 12:21pm