CITIC rejects Clive Palmer Sino Iron legal action claims

CITIC Pacific has responded to comments made by Mineralogy head Clive Palmer in relation to recently launched legal action between the two companies.

Chinese state-backed CITIC announced last week it was taking legal action against Mineralogy due to Mineralogy’s alleged refusal to submit essential proposals related to the granting of land tenements at the Sino Iron project in the Pilbara, Western Australia.

Mineralogy subsequently took legal action against CITIC related to $500 million in environmental rehabilitation funds that Mineralogy claims CITIC has withheld from a remediation fund.

“It’s our firm view that Mineralogy’s ongoing failure and refusal to submit the proposals and take the other steps requested of it has caused, is causing and will continue to cause loss and damage to CITIC subsidiaries,” said CITIC Pacific Mining chief executive officer Chen Zeng at the time.

Palmer yesterday responded to these allegations, stating he had already offered the tenements to CITIC for $750 million plus royalties, and that CITIC didn’t want to pay.

CITIC responded to Palmer’s comments with a brief statement rejecting the claims.

The statement said, “CITIC notes that Mr Clive Palmer issued a media statement yesterday. The matter referenced is already before the Federal Court of Australia.

“As the matter is now before the court, CITIC does not propose to answer Mr Palmer’s extreme assertions or engage in a discourse through the media. The matter will be determined by the court.”

The Sino Iron magnetite project, 100km south of Karratha, is a $16 billion site with a projected 40-year mine life.