Citic wins injunction against Palmer

The Supreme Court of WA has granted Citic Pacific an injunction against Clive Palmer in order to stop his company terminating mining rights at the Sino Iron mine in the Pilbara.

In a statement today Citic said the injunction against Palmer’s company Mineralogy would be effective until after the court makes a ruling on the royalty dispute between the two miners.

Palmer, who owns the land on which the $6.7 billion Sino Iron mine is built, is threatening to terminate Citic’s mining rights because of a disagreement on royalty rates.

Palmer wants to receive royalties for ore already mined at the fledgling Pilbara mine, but Citic claims it only has to pay royalties when the ore is exported.

The dispute reached a boiling point earlier this week after Palmer threatened to withdraw mining rights on the project until he was awarded royalties.

In a statement Citic said a court hearing on the dispute was expected to take place in 2013.

“Citic is firmly of the view that Mineralogy’s claims are without foundation and will contest Mineralogy’s claims vigorously,” it said.

“Citic Pacific and its related entities have complied with the relevant terms of their agreements with Mineralogy and will take all necessary actions to protect its investment.”

Citic said it did not expect the legal dispute to have any impact on day-to-day activities or ongoing developments at the Sino mine.

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