Clive Palmer to be paid $150million after legal battle

Clive Palmer’s mining company Mineralogy has won its long-running battle against its estranged Chinese joint venture partners in Western Australia.

The companies have been embroiled in legal warfare for many years but the main dispute related to calculations for royalty payments from the multi-billion dollar Sino Iron project, which CITIC built and operates, drawing ore from Mineralogy-owned land.

On Friday, WA Supreme Court Justice Kenneth Martin concluded CITIC’s wholly owned subsidiaries Sino Iron and Korean Steel must each pay Mineralogy AU$63 million (US$74.7 million) in lost royalties.

 Clive Palmer’s Mineralogy has won its long-running battle against estranged Chinese partner

Citic workers attended the Supreme Court in Perth during the legal battle with Mineralogy

Citic workers attended the Supreme Court in Perth during the legal battle with Mineralogy

Citic has refused to pay the second royalty to Mineralogy, resulting in the US$150 million

Citic has refused to pay the second royalty to Mineralogy, resulting in the US$150 million

Citic had previously paid Mr Palmer AU$545.39 million (US$415 million) in 2006 as part of a takeover agreement of the project, which included Citic also paying two different forms of royalties to Mineralogy.

Citic has refused to pay the second royalty, known as Royalty B, prompting Mineralogy to make the US$150 million claim, according to the ABC.

But the judge will need further submissions before reaching his final position regarding CITIC being their guarantor.

In August, CITIC used its half-year results to lash Mineralogy, saying that its uncooperative and adversarial approach’ posed a threat to the future of Sino Iron.

Chairman Chang Zhenming said the court battles, combined with an uncertain iron ore price, ‘could jeopardise Sino Iron’s viability and, in the worst case, lead to suspension of our operations’.

He also said Sino Iron had unsuccessfully sought Mineralogy’s help to secure government approvals to use more land for waste storage.

‘Mineralogy’s refusal to cooperate means that we will run out of space for waste and tailings storage in the near future,’ he said.

‘This will severely constrain operations and impact Sino Iron’s sustainability.’

 Subsidiaries Sino Iron and Korean Steel must each pay Palmer’s company US$74.7 million

The former politician recently went on a rant where he blamed the Chinese – and the government – for destroying the ‘Australian Dream’.

He accuses the government of failing to provide affordable housing – and claims the Chinese are profiting from it in a short video posted to Facebook. 

The mining magnate blamed Chinese buyers for a lack of affordable housing, and demanded the government take action.

‘The Australian dream has become a nightmare,’ he said as he launched into a rant about the housing crisis. 

 Clive Palmer recently went on a bizarre rant where he blamed the Chinese - and the  Australian government - for destroying the 'Australian Dream', which was posted to his Facebook page

 Clive Palmer recently went on a bizarre rant where he blamed the Chinese – and the  Australian government – for destroying the ‘Australian Dream’, which was posted to his Facebook page

‘The Australian dream was a right of all Australians only a short time ago, but now over 25% of sales in New South Wales last year went to people coming from China.

‘This is Australia, the government must be to provide housing and opportunities for Australians. We need to do something about it.’

Palmer’s family owns eight houses in the luxury enclave of Sovereign Islands – the Gold Coast’s most exclusive suburb. 

Overseas buyers accounted for 25 per cent of new homes in NSW last year, according to Credit Suisse.

Citizens of China, including Macau and Hong Kong, and Taiwan made up 87 per cent of all foreign property buyers during the same period.

Opinion among Palmer’s Facebook followers was split, with some applauding the businessman for speaking his mind, and other calling him ‘part of the problem’.

Read more at DailyMail.co.uk