Fight over Palmer's WA iron ore intensifies
THE legal battle over Clive Palmer's West Australian iron ore deposit has escalated, with Mineralogy moving to cut off Citic Pacific from its rights to the resource.
Mr Palmer's company on Friday released a statement saying it had given Citic 21 days' notice of a termination of the mining rights to the Sino Iron project.
The notice comes after Citic took action in WA courts against Mr Palmer's company, amid allegations $12 million of Citic's money was used to fund election advertising last year.
However, a Citic statement disputed the claims, saying Mineralogy had already been restrained by courts in relation to such notices "on three separate occasions over the past two years".
Mr Palmer's company said the notice followed legal proceedings by the Hong Kong Government against former directors of Citic over allegations of "billions of dollars in losses".
Mineralogy director Clive Mensink said the termination notice followed a default notice served on Citic, which he alleged the company failed to declare to the HK market.
Mr Mensink said the HK stock exchange should "immediately" start an investigation into Citic Pacific and its directors,
"Not only has Citic Pacific Limited failed to disclose important material facts to the market, they have sought suppression orders and obtained from Australian court orders to suppress information from the market and Citic Pacific shareholders," he said.
A statement from Citic pacific said the company was surprised by Mineralogy's statements, distributed just hours before another court hearing in Perth on Friday.
"In addition to the US$415 million paid by CITIC to Mineralogy to acquire its rights at the Sino Iron Project, all royalties that are owed and calculable have been paid in full by CITIC to Mineralogy," the statement read.
- APN NEWSDESK