Singapore 11/03/2016 - Australia’s Queensland government has approved the transfer of Queensland Nickel’s (QNI) environmental authority (EA) to Queensland Nickel Sales (QNS), the new operator of the Yabulu nickel refinery.
The approval is expected to allow the refinery to continue operating.
The Queensland government said in a Friday statement that the application to transfer the EA to QNS from the refinery’s voluntary administrators, FTI Consulting, was expedited as “there were no environmental impediments to the plant’s continuing operation”.
The EA transferred to QNS sets environmental standards for air, water, regulated structures, noise, land and rehabilitation, including strict conditions on the refinery’s operations that ensure the safety of the surrounding environment, including the Great Barrier Reef, according to the statement.
The approval comes just after FTI said that majority of the employees of QNI was terminated effective March 11, 5 pm local time.
QNS, which has replaced FTI as manager of the refinery on Monday, may offer the employees employment, though FTI said it was unaware of the terms or timing of those offers.
Mining magnate and Australian politician Clive Palmer who owns QNS and QNI, however, told local media on Friday that he intends to rehire the workers.
Palmer took back control of QNI from FTI on Monday after receiving a conditional offer of around A$23 million ($17 million) to support operations at the refinery following the recent recovery in nickel prices.
The turn of events since Monday is expected to keep the 30,000-35,000 tonnes per year refinery operating.
Prior to being replaced as manager, FTI said it had "strong consideration to replacing the Yabulu refinery into care and maintenance due to ongoing trading losses being incurred and concerns over plant maintenance, safety and environmental issues."
FTI had introduced a temporary 11-day production suspension early last week due to a lack of nickel ore.