BOYNE Smelters Ltd has rubbished Clive Palmer's claim that the smelter is handed $40 million each year from the government.
A spokesperson for Pacific Aluminium, owner of the smelter at Boyne Island, said in a statement yesterday that Mr Palmer's claims were untrue.
"Boyne Smelters Limited (BSL) does not receive any financial support from the Queensland Government to operate," the statement read.
Mr Palmer has been calling on the Queensland treasurer Curtis Pitt to provide a guarantee for a loan to his Queensland Nickel after losing a court battle with a former Chinese business partner where the company was seeking $48 million in compensation.
In a statement released yesterday, Mr Palmer said Queensland Nickel was not asking for money "like the $40 million a year the government pays to the foreign-owned Boyne Smelters in Gladstone.
"It is shocking that Queensland Treasurer Curtis Pitt gives away $40 million each year to the foreign owned Gladstone smelter but has refused to support Queensland owned company Queensland Nickel, the largest employer in North Queensland.
Gladstone state MP Glenn Butcher told The Observer he could not believe that any funds had been given to the smelter from the government.
"He needs to clarify where he got that figure from, and what the statement means," he said.
Federal member for Flynn, Ken O'Dowd told The Observer that to the best of his knowledge Boyne Smelter does not receive any funding from any government.
The Observer asked Mr Palmer's media company to back up his statement. We are still waiting for a response.