This article is over 1 year old

Court rules that CITIC must pay the former MP’s Mineralogy company to settle their dispute over an iron ore joint venture

Clive Palmer wins $200m in damages from former Chinese partners

Clive Palmer has won nearly A$200m in damages in his long-running legal battle against his estranged Chinese joint-venture partner in Western Australia.

Palmer’s company, Mineralogy, had disputed calculations for royalty payments from the multi-billion dollar Sino Iron project, which Chinese firm CITIC built and operates, drawing ore from Mineralogy-owned land.

On Friday, the Western Australian supreme court ruled that CITIC’s wholly owned subsidiaries Sino Iron and Korean Steel must pay Mineralogy US$149.4m or A$196.3m. Justice Kenneth Martin said he needed further submissions before reaching a final position regarding CITIC being their guarantor.

Why Clive Palmer's assets have been dragged into the Queensland Nickel fight Read more

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

Chang Zhenming, the chairman, 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.”

Palmer attended the first day of the trial in June but did not give evidence.

Outside the courtroom on Friday, he took a broad swipe at China and blamed CITIC for the collapse of Queensland Nickel.

“Some of these funds were earmarked for programs over there,” he told reporters, adding that the WA mine “will never close”.

State-owned CITIC is China’s largest conglomerate.

This is a breaking news story. More follows.