Raphael
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Clive Palmer tries to terminate iron ore partnership with Chinese company Citic Pacific
Clive Palmer's company Mineralogy has moved to terminate its partnership with the Chinese operator of its $10 billion iron ore mine in Western Australia.
Mineralogy has given Chinese state-owned Citic Pacific notice that its right to mine iron ore at the Sino Iron Project in Western Australia will be terminated in 21 days.
Mineralogy director Clive Mensink, Mr Palmer's nephew, said the company had served a default notice on Citic Pacific over billions of dollars in losses more than two years ago, but the issues raised had not been addressed.
"Not only has Citic Pacific Limited failed to rectify the defaults in the notice, the directors of Citic Pacific failed to declare the default notice to the market in Hong Kong and may have breached the law," Mr Mensink said.
He said Mineralogy was considering making a complaint to Hong Kong authorities about the alleged failure of Citic Pacific directors to inform the Hong Kong stock exchange of the 2012 default notice.
"The Sino Iron Project has a capital cost of more than $8 billion and the failure of the directors to inform the market could be a criminal offence," Mr Mensink said.
Citic has sought an injunction in the West Australian Supreme Court to stop Mineralogy terminating its contract.
"Citic looks forward to this matter being resolved by the court," the company said in a statement.
The company said this was not the first time it had been served a termination notice from Mineralogy.
"Mineralogy has been restrained by the court or has undertaken to the court not to rely on several default and termination notices on three separate occasions over the past two years," Citic said.
"In addition to the $449 million paid by Citic to Mineralogy to acquire its rights at the Sino Iron project, all royalties that are owed and calculable have been paid in full by Citic to Mineralogy."
Mr Palmer's Mineralogy has been embroiled in a series of Australian legal battles with Citic Pacific over the Sino Iron project in WA's Pilbara.
One is being played out in the Western Australian Supreme Court and surrounds iron ore royalty payments that Mineralogy claims it is owed by Citic Pacific.
Citic Pacific has launched a separate matter in the Queensland Supreme Court, alleging Mr Palmer misused funds set aside for port operations on his election campaign.
Mr Palmer's relationship with the Chinese company further soured when he called the country's government "bastards" and "mongrels" that "shoot their own people".
The federal MP, whose Palmer United Party wields crucial balance-of-power votes in the Senate, was responding to questions on the ABC's Q&A program about the legal battle. He later apologised for the comments.
His comments were widely condemned, including by Prime Minister Tony Abbott.
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This is end of his political career. Without easy access to money he can embezzle/siphon, and as he will be ordered to pay damages for civil suits filed against him for all his swindling, how will he fund his political campaigns?
Clive Palmer's company Mineralogy has moved to terminate its partnership with the Chinese operator of its $10 billion iron ore mine in Western Australia.
Mineralogy has given Chinese state-owned Citic Pacific notice that its right to mine iron ore at the Sino Iron Project in Western Australia will be terminated in 21 days.
Mineralogy director Clive Mensink, Mr Palmer's nephew, said the company had served a default notice on Citic Pacific over billions of dollars in losses more than two years ago, but the issues raised had not been addressed.
"Not only has Citic Pacific Limited failed to rectify the defaults in the notice, the directors of Citic Pacific failed to declare the default notice to the market in Hong Kong and may have breached the law," Mr Mensink said.
He said Mineralogy was considering making a complaint to Hong Kong authorities about the alleged failure of Citic Pacific directors to inform the Hong Kong stock exchange of the 2012 default notice.
"The Sino Iron Project has a capital cost of more than $8 billion and the failure of the directors to inform the market could be a criminal offence," Mr Mensink said.
Citic has sought an injunction in the West Australian Supreme Court to stop Mineralogy terminating its contract.
"Citic looks forward to this matter being resolved by the court," the company said in a statement.
The company said this was not the first time it had been served a termination notice from Mineralogy.
"Mineralogy has been restrained by the court or has undertaken to the court not to rely on several default and termination notices on three separate occasions over the past two years," Citic said.
"In addition to the $449 million paid by Citic to Mineralogy to acquire its rights at the Sino Iron project, all royalties that are owed and calculable have been paid in full by Citic to Mineralogy."
Mr Palmer's Mineralogy has been embroiled in a series of Australian legal battles with Citic Pacific over the Sino Iron project in WA's Pilbara.
One is being played out in the Western Australian Supreme Court and surrounds iron ore royalty payments that Mineralogy claims it is owed by Citic Pacific.
Citic Pacific has launched a separate matter in the Queensland Supreme Court, alleging Mr Palmer misused funds set aside for port operations on his election campaign.
Mr Palmer's relationship with the Chinese company further soured when he called the country's government "bastards" and "mongrels" that "shoot their own people".
The federal MP, whose Palmer United Party wields crucial balance-of-power votes in the Senate, was responding to questions on the ABC's Q&A program about the legal battle. He later apologised for the comments.
His comments were widely condemned, including by Prime Minister Tony Abbott.
-------------------------------------
This is end of his political career. Without easy access to money he can embezzle/siphon, and as he will be ordered to pay damages for civil suits filed against him for all his swindling, how will he fund his political campaigns?
