Production costs at Clive Palmer’s Queensland Nickel refinery were already at loss-making levels at the end of last year before surging in January and February when the adminstrators took the decision to stop activity.
This simple table from the administrators’ report shows production costs were spiralling out of control as problems mounted with maintenance of equipment and supply of materials.
The nickel price was around $US3.80 in March and $3.76 per pound in February on the London Metal Exchange. Here’s what the production costs were at Palmer’s plant:
The administrators were appointed in January, and the wheels were already coming off.