REPORT: Clive Palmer borrowed $1.35 million from one of his struggling companies

Clive Palmer Photo: Getty Images

Federal MP and Queensland mining magnate Clive Palmer has taken $1.35 million in loans from a mining company he owns with just two staff.

The Australian reports that ASIC documents show “companies associated with directo­r, Clive Palmer” took the money from Gladstone Pacific Nickel in September at “commercial bank rates plus a margin of 2% and repayable in six months”, according to the company’s annual report.

Palmer is a director and majority shareholder in Gladstone Pacific Nickel.

The Brisbane-based company was previously listed on the Toronto stock exchange, but subsequently faced bans from Canadian authorities over failure to lodge documents under local disclosure laws.

Today’s report by Hedley Thomas in The Australian says ASIC documents show the company was not generating revenue, funding its operations from existing cash reserves and had a net loss of nearly $850,000 last financial year.

This hasn’t been a great year for Palmer. The former Coalition supporter who established his political party after a fallout with the Queensland LNP, has seen his political project disintegrate with two of his senators, Glenn Lazarus and Jacqui Lambie, leaving his party and greatly diminishing his political bargaining power.

Electoral records released at the start of the year showed the Palmer United Party received some $28 million in donations to fund its election campaign. Around $26 million of that came from Palmer’s own companies.

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