Posted December 01, 2015 18:08:40

The West Australian Supreme Court has heard Clive Palmer’s Queensland Nickel refinery is in a dire economic position and could face unspecified consequences if his bid for a $ 48 million payment from one particular his Chinese enterprise partners is not met this week.

Mr Palmer’s company Mineralogy is locked in a lengthy-running legal battle with the CITIC Group over disputed royalties at the Sino Iron magnetite project in WA’s Pilbara.

Mineralogy is demanding CITIC pay the $ 48 million instantly or face closure of the project and is looking for an urgent injunction in the matter.

Mineralogy lawyer Simon Couper told the court the matter was urgent, due to the fact a payment was due to be paid by Queensland Nickel subsequent Monday.

CITIC’s lawyer Charles Scerri told the court confidential affidavits tendered in the matter contained evidence of Queensland Nickel’s “dire monetary situation”.

“[Queensland Nickel’s] economic circumstance is very regrettable, but it has nothing at all to do with this case,” Mr Scerri mentioned.

He also told the court the company’s director had been speaking to the Mayor of Townsville about possible job losses.

It comes two months soon after Mr Palmer met with workers at the Townsville refinery and reassured them about the future of his organization.

He also denied reports the business was in discussions with the Queensland Government about a prospective $ 25 million loan.

The matter will be heard by Justice Paul Tottle subsequent Monday.

Topics: clive-palmer, business-economics-and-finance, townsville-4810

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