Clive Palmer has commenced legal action against Fairfax Media seeking $50 million in damages over a story the Sydney Morning Herald published about his China First mine.
The Australian reports documents filed in Queensland's Supreme Court allege SMH journalists depicted Palmer as a "dishonourable and unethical businessman".
Palmer claims the SMH report could cause him to suffer up to $50 million in damages after journalists used "inflammatory language" to sensationalise the article.
Earlier this week Palmer indicated he would sue after the SMH reported "totally false and improper claims" about contracts between China First and Swiss energy provider Vitol.
The SMH said China First had been "rocked" by Vitol cancelling an agreement to buy half of China First's coal over 20 years.
"The setback highlights the contrast between Mr Palmer's fondness for bold statements and the results he achieves," the SMH said.
Palmer said the cancellation had no impact on China First and the SMH had made false reports and failed to publish his side of the story.
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