Australian billionaire Clive Palmer’s Mineralogy Pty has agreed to an expansion of the Sino Iron project, a major Chinese-run iron ore operation in Western Australia, despite a long-standing legal dispute with Citic Ltd. The deal marks a significant development in the ongoing saga between the two parties, especially in light of previous royalty payment disputes.
Australian billionaire Clive Palmer’s Mineralogy Pty has approved the expansion of the Sino Iron project, one of Australia’s largest iron ore operations run by Chinese conglomerate Citic Ltd. Located in Western Australia, this project is considered one of the largest foreign mining investments by a Chinese company in the country.
The agreement marks a significant step in resolving the decades-long legal dispute between Palmer’s company and Citic, related to royalty payments. Mineralogy, which holds the legal permits for the mine, stated on Wednesday that it had approved Citic’s request for the expansion of the operations.
Despite the long-running legal challenges, including a recent loss in Australia’s Supreme Court, which dismissed Mineralogy’s bid to lodge a counterclaim for unpaid royalties, the two companies have managed to move forward with the expansion plan. A trial on the royalties matter is set to take place next week.
According to Clive Palmer, the expansion deal had been delayed by Citic’s failure to provide necessary documentation, which he claims violated their agreement. “Mineralogy looks forward to increased exports and an expanded workforce with the expansion of these operations,” Palmer commented in a statement.
However, a spokesperson for Citic Pacific, a Perth-based subsidiary of Citic Ltd, disputed Palmer’s claims, stating that Mineralogy had all the required information for the past 20 months to approve the proposal. They added that it was inappropriate to comment further, given the ongoing trial.
With more than $12 billion already invested in the Sino Iron project, Citic is committed to its long-term development in Western Australia. The expansion is expected to significantly boost the operation’s output and create new jobs in the region.
As the legal battle continues, this expansion agreement highlights the complicated yet persistent relationship between Australian and Chinese interests in the mining sector. The resolution of this dispute could have lasting implications for foreign investment in Australia’s mining industry.
