A $40 million super yacht belonging to Australian mining magnate Clive Palmer is apparently sinking, after colliding with a reef off Singapore.

The luxury vessel got stuck at low tide late on Monday, about a kilometre off the exclusive Sentosa Island.

It is believed to have been moored at Sentosa’s One Fifteen Marina for a week before departing at 4.25pm (local time) on Saturday.

It had been bound for a six-day journey to Port Moresby in Papua New Guinea before problems struck.

One local man has told The Sydney Morning Herald that mechanical failure was the most likely cause of the issue.

“It’s very difficult to make this kind of mistake, so maybe they had some problem with the motor,” they said.

“This is just at the exit of the marina, and it is absolutely very clear that you can’t put the boat between those two buoys. You can’t do that. Even if you are a jet-skier like me, you know that.”

Tweet from @AHaermeyer

Palmer bought the 56-metre Benetti, which he renamed Australia, in 2021. It has multiple bars, a VIP suite, spa and two sundecks.

Australia was a major upgrade from the magnate’s previous 35-metre Sunseeker $8 million runabout, called the Nancy Jean.

It is unclear if Palmer was onboard the Australia when it ran aground.