Rich new owner changes nickel plant's fortunes

A major nickel plant bought by Australia's richest man, Clive Palmer, last year has staged a remarkable turnaround.

The world's biggest miner BHP Billiton in July 2009 sold the loss-making Yabulu nickel refinery in Townsville to companies controlled by Palmer.

Queensland Nickel general manager Trefor Flood said staff morale had been low and the business was losing about $40 million a month in January 2009, due to falling nickel prices during the global recession and poor management.

Staff numbers had recovered to about 750 - compared with 520 last year - and the company was making a profit, Flood said.

He said Palmer had made the turnaround possible by giving many dedicated employees the chance to show the refinery could ride out the storm.

Kevin Pery, principal processing engineer, said workers were ripping the BHP Billiton insignias off their work shirts and yelling "Goodbye Big Australian" as Palmer took over the business last year.

Flood said Palmer had made it clear to every worker he was approachable and wanted the plant to succeed.

"From the get-go, Clive told every person that we would not take any money - we would put everything we make back into the plant and minimise capital spending and costs for the next two years," Flood said.

"And we will have a reserve behind us if we have negative nickel prices."

He said the plant was well on track to produce more nickel and cobalt this year than originally forecast.

- AAP