Clive Palmer’s company suing Government for $41bn

Mining magnate Clive Palmer is using his foreign-based company to sue the Australian Government in a legal action tied to his interests in Queensland’s Galilee Basin.

Businessman Clive Palmer. Picture: NCA NewsWire / Dan Peled

Mining magnate Clive Palmer is using his foreign-based company Zeph Investments to sue the Australian Government for a whopping $41.3 billion, in a legal action tied to his interests in the Galilee Basin.

Zeph, Mr Palmer’s Singapore-based company, is claiming Australia breached its international trade obligations to it.

The dispute relates to “certain mineral exploration permits” held by Mr Palmer’s Waratah Coal in the Galilee Basin.

Attorney-General Mark Dreyfus’s spokeswoman said Mr Palmer liked to use expensive lawsuits to “get his own way” and said Australia would “vigorously defend” itself.

Details of the sensational legal action were disclosed in answers to questions on notice from Senate estimates hearings, though details of the specifics remain scarce.

Attorney-General Mark Dreyfus. Picture: NCA NewsWire / Martin Ollman

Zeph provided the Attorney-General’s department with a notice of intention to start proceedings against Australia on February 21, before serving a notice of arbitration on May 29 to start proceedings.

It said the $41.3 billion damages claim was “unsubstantiated”.

While it is not clear if it is related to the case, the Australian Government rejected Mr Palmer’s application for his central Queensland coal mine project earlier in February.

Mr Palmer’s company is taking action through an “investor-state dispute settlement tribunal”, a rarely used mechanism that forms part of some free-trade agreements.

It claims a breach of obligations under the Association of South East Asian Nations (ASEAN)-Australia-New Zealand Free Trade Area, specifically from a section related to investment.

Mr Dreyfus’ spokeswoman said Mr Palmer had already lodged a separate claim suing Australia for $296 billion, using the same trade dispute mechanism, related to his Pilbara iron ore interests in WA.

“Now he’s brought another claim for $41.3 billion in relation to Queensland. Enough taxpayer money has been wasted by Mr Palmer’s selfish litigation,” she said.

“Mr Palmer likes to use expensive lawsuits to get his own way.”

Asked for comment, Mr Palmer said: “I can’t tell you about any legal action. Thanks for that.”

Separate departmental documents show Mr Palmer himself has been involved in 12 court actions in which the Australian Government Solicitor acted for a Commonwealth, while there were about 20 other proceedings commenced by companies associated with Mr Palmer including Queensland Nickel and Mineralogy.