Clive Palmer suffers double setback in court battle over iron ore port

http://www.theguardian.com/world/2014/aug/20/clive-palmer-suffers-double-setback-in-court-battle-over-iron-ore-port

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Clive Palmer has suffered a double setback in his legal battle over an iron ore port in the Pilbara, after the federal courts in Perth and Sydney ruled against his company in two cases on Wednesday.

Palmer wanted the federal infrastructure department to give his company Mineralogy control of security at the state’s Cape Preston port instead of his Chinese partner in the $10bn project, Citic.

The court’s findings, seen by Guardian Australia, said provision of security against various threats was an “important consideration for the operation of Australian ports” and required by a statutory arrangement.

Mineralogy objected to losing the security contract because it was in a dispute with Citic over facilities deeds among other reasons.

Judge Neil McKerracher dismissed the application, stating Mineralogy’s complaints “cannot be sustained.”

“I consider the [infrastructure] secretary has a much wider discretion in relation to [maritime security plan] approval than Mineralogy contends. Further, the consequence of the secretary’s approval is less significant than Mineralogy contends.”

He also ordered Mineralogy to pay the costs of the department and those of Cape Preston Port company, “to be taxed if not agreed.”

Mineralogy was also ordered to pay the costs of Sino Iron in a separate case over control of the port heard in Sydney.

The court on Wednesday set aside a February decision which gave control of the port to Mineralogy, after the Chinese sued for control.

The department of infrastructure stripped Mineralogy of control last year, after it alleged previously submitted plans – upon which Mineralogy had been given control – had “fundamental factual inaccuracies and omissions,” the Australian reported.

Citic welcomed both Wednesday’s decision.

“We look forward to the secretary for the department of infrastructure and regional development designating a new port operator for maritime security purposes in accordance with the requirements of the law,” a spokesman said in statement to Guardian Australia, in relation to the Sydney judgement.

“Citic Pacific remains committed to the development and operation of the Sino Iron Project.”

Palmer was roundly criticised this week after he launched a tirade, apparently against Citic, on live television. While questioned by Q&A host Tony Jones on allegations he funneled more than $12m from Citic to his election campaign, Palmer responded with a long rant that referred to Chinese “mongrels” and “bastards” who “shoot their own people.”

Palmer could not be reached for comment.