Billionaire Palmer considers purchase of BHP assets

The refinery was sold today to companies wholly owned by Clive Palmer, the Queensland-based iron ore billionaire for an undisclosed sum.

Professor Palmer stated that the purchase price of the refinery was less than its $2 billion replacement cost.

He added that he would consider purchasing BHP's Ravensthorpe and Leinster nickel mines in Western Australia to further bolster the expansion of the Yabulu refinery.

Prof Palmer said, "The refinery has produced up to 32,000 tonnes of nickel and 2700 tonnes of cobalt a year for the past 35 years. BHP spent over $1 billion in the last two years upgrading the plant so it could take another 40,000 tonnes of feedstock from Ravensthorpe in Western Australia. That plant was doing that up until Ravensthorpe closed down so there is the potential to open up the back end of the plant again to take an additional feedstock source.''

There is also some speculation that BHP Billiton will sell its Ravensthorpe nickel laterite mine in WA's south that closed in January, just a year after it opened leading to 1800 job losses.

Further, the future of BHP's operations at Leinster, WA is also in doubt. Mines and Petroleum Minister Norman Moore recently threatened to close the Perseverance mine following two rock fall incidents this month.

"It could be (of interest). We've been negotiating Yabulu since December and haven't had the ability to look at all the Ravensthorpe data and plant to do a proper due diligence to know whether there is an angle or way that that could be revitalised."Maybe BHP want to put it on the market in the future and provide more information. We're also in the process of acquiring more nickel deposits to feed this plant.'', Mr Palmer added.

Graham Reynolds, BHP Billiton Nickel West public affairs manager said that the company had just concluded an options study at Yabulu, under which it would determine whether to retain the asset or divest it.

Mr Reynolds further stated that Ravensthorpe was the subject of an options study, which was expected to conclude by the end of calendar 2009. He also stated that there were no plans currently to sell the Nickel West assets including the Perseverance mine.