Australia's second largest miner BHP Billiton (BHP) has signed an agreement to sell its Yabulu nickel refinery, located 25 kilometers northwest of Townsville in Queensland, to coal and iron ore company Mineralogy Ply Ltd's chairman Professor Clive Palmer, Australia's fifth richest man.
According to a statement released by BHP, the sale is expected to be finalized by July 31, 2009.
"The terms of the sale are confidential; however, both BHP Billiton and Professor Palmer have sought to provide that, at sale completion, working capital and access to funds are sufficient to enable the business to commence as a going concern under Professor Palmer's ownership," said BHP.
The deal has the support of the Queensland government and should preserve about 900 jobs in the Townsville area.
Commenting on the agreement, BHP Billiton Stainless Steel Materials Division president Jimmy Wilson said that the result was an outstanding outcome for all parties, and reflected the deep commitment of both Professor Palmer and the Queensland government to the continued operation of the refinery.
The sale came after BHP took a US$675 million write-down on the plant. These write downs will be reported as exceptional items in the results of BHP for the year ended June 30, 2009.