Mining billionaire Clive Palmer wins royalties dispute over Chinese firm
Chinese infrastructure firm Citic Pacific owes Australian tycoon Clive Palmer royalties related to a $6.8 billion iron ore project, according to the Supreme Court of Western Australia.
The dispute originated from a 2006 agreement committing Citic to quarterly royalty payments of A$0.30/tonne of ore “taken.”
Citic claimed that they should only have to pay once the ore is delivered to a crusher. Palmer’s interpretation, supported by the ruling, is that the royalties should become due once the ore is stockpiled.
Citic is now on the hook for A$400,000 of back payments, which must be paid to Palmer’s firm, Mineralogy.