Clive Palmer splurged $80m on 2019 Australian federal election bid

The details of Clive Palmer’s multimillion dollar spending spree on his failed Canberra tilt are revealed.

Clive Palmer. Picture: AAP

Billionaire Clive Palmer spent more than $80m on his fruitless bid for political power while fighting numerous legal battles, establishing a shipbuilding business in Singapore and exploring for rare earth metals in New Zealand.

The revelations of Mr Palmer’s spending spree and business ­activities is contained in the latest financial accounts for his Mineralogy International private ­company.

Mr Palmer’s spend on political advertising, as well as real estate, maritime and mining ventures, meant Mineralogy’s profits fell from $354m last year to $21.7m this year, though the account­s show Queensland’s richest person is ­receiving huge royalties pay­ments. Mineralogy’s $285m income includes $282m in royalties, which Mr Palmer is paid quarterly by China’s biggest company, Citic, from the massive Sino Iron magnetite project in the Pilbara.

The royalties were down about $190m on the 2018 figure due to a windfall payment last year after his victory in a long-running legal battle against Citic.

Mr Palmer’s bid for parliament via his United Australia Party at the May election cost $83.5m in advertising expenses and donations. Mineralogy, which counts Mr Palmer as its sole director, also lodged $82m in administrative expenses, $7.4m in employee ­benefits and $3.5m in exploration expenses. The company also copped a $77m impairment expense, but made an almost $20m gain on foreign currency exchanges. Mineralogy shelled out $9m for properties during the year and spent $67m snapping up commod­ities assets.

While Mineralogy paid $27.3m in Australian company tax, its accounts show that it changed its corporate structure so that its ownership flows via a Singapore entity, Mineralogy International Pte Ltd, to a New Zealand-domiciled company called Mineralogy International Limited.

Mr Palmer is building up his interests in both countries. In New Zealand, the company has leased an industrial warehouse in Christchurch and is exploring for rare earth metals on the North ­Island.

His Singapore interests have more of a maritime flavour, the accounts state. “MIPL acquired three subsid­iaries in Singapore which operate in building and repairing ships, tankers, other ocean-going ­vessels and manpower contracting services, which currently has 40 employees.”

Mr Palmer has also reportedly spent about $200m settling debts related to Queensland Nickel, the Townsville refinery which collapsed­ in 2016 and has led to a host of legal and political battles.

Queensland Nickel’s liquidators are pursuing him for an estimated $104m and Mr Palmer has lodged legal claims against Citic in several different matters which have combined total estimated claim amounts of almost $4.6bn.

He is also battling conservationists regarding a proposed mine in Queensland’s Galilee Basin planned by his Waratah Coal subsidiary, as well as legal ­action from Universal Music regard­ing a breach of copyright over the use of the Twisted Sister song We’re Not Gonna Take It during the election campaign.

Mineralogy has net assets of about $486m. Mr Palmer’s income could rise in future years given his deal with Citic, if the Chinese mining giant produces more iron ore. His ­royalties deal is understood to be worth about $US10 a tonne of magnetite concentrate, and Citic shipped 19 million tonnes of magnet­ite iron ore from the project­ last year, rising to about 24 million tonnes if the project hits its maximum run-rate.