SYDNEY (AFP) – Australian tycoon Clive Palmer’s Mineralogy on Friday served a notice on Chinese-owned CITIC Pacific to terminate its mining rights to a multi-billion-dollar iron ore project in the latest clash between the two firms.
Mineralogy director Clive Mensink said the 21-day notice of termination came after his company served a default notice on Hong Kong-based CITIC Pacific in July 2012.
“Not only has CITIC Pacific Limited failed to rectify the defaults in the notice, the directors of CITIC Pacific failed to declare the default notice to the market in Hong Kong and may have breached the law,” Mensink said in a statement.
He added that the termination notice was served on September 12 but CITIC Pacific’s directors had “failed to make a public announcement or inform the market”.
Mensink called for the Hong Kong Stock Exchange and authorities to investigate.
CITIC in Australia said the Supreme Court of Western Australia was scheduled to hear an application later Friday for an injunction to stop Mineralogy from issuing such notices.
The company added in a statement that “in addition to the $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”.
Palmer, also a politician who wields crucial balance-of-power votes in the upper house Senate, told ABC radio that Mineralogy’s 30-40 meetings with CITIC failed to resolve their issues and led to the termination notice.