Clive Palmer is attempting to stop Citic Pacific from mining his iron ore in Western Australia.
Palmer’s Mineralogy has served a 21-day termination notice to the Chinese-backed company, stating the company will not be allowed to mine Mineralogy resources at the $8 billion Sino Iron project in WA’s Pilbara.
Palmer is involved in a legal dispute with Citic, which is seeking compensation over claims $12 million was inappropriately used by Mineralogy.
Mineralogy director Clive Mensink said the notice was served on September 12 after it become concerned about governance and market disclosure, including an alleged failure to address matters raised in a default notice from 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.
He also suggested the Hong Kong Stock Exchange and authorities “immediately” investigate alleged Citic disclosure oversights.
“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,” Mensink alleges.
“The current board is suppressing information in the same way the former Board did. Five of those directors are now facing action from the Hong Kong authorities.”
He also said Mineralogy has evidence which backs up its claims and is considering lodging a complaint with Hong Kong authorities.
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