Bloomberg reported that mining billionaire Mr Clive Palmer cut 2011 bonuses for workers at his nickel refinery in Queensland, who received cars and overseas holidays the previous year, because of falling prices and the rising Australian dollar.

Mr Mark Kelly, a spokesman for Queensland Nickel, said that rewards for workers at Queensland Nickel Pty, which operates the Yabulu refinery, were different in 2011 in response to the changed business conditions.

Nickel prices last year fell 24% to USD 18.710 a tonne, reflecting lower demand from stainless steel consumers in Europe. This compares with a 34% gain in prices to USD 24,750 a tonne in 2010 when Mr Palmer, who also owns coal and iron ore assets in Australia, rewarded workers with bonuses including 700 vacations in Fiji and 50 Mercedes Benz sedans for Queensland Nickel’s 800 employees.

Mr Kelly said that Mr Palmer bought the refinery from BHP Billiton Limited in 2009. The operation produced about 30,000 tonnes of nickel during 2011 that is shipped to stainless steel manufacturers across Asia, including Taiwan, South Korea and Japan.

BHP, the world's fourth largest nickel producer, this month cut mining operations at its Nickel West division in Western Australia by 30%, citing lower prices and the strong Australian dollar.

(Sourced from www.bloomberg.net)