Clive Palmer accuses Chinese company Citic of theft

Clive Palmer has escalated his legal war against his estranged Chinese business partner Citic.

Clive Palmer has escalated his legal war against his estranged Chinese business partner Citic, accusing the company of trespassing and stealing ore from the $US10 billion ($13.33bn) Sino Iron project in the Pilbara.

Charles Scerri QC, counsel for Citic, told the West Australian Supreme Court that the criminal allegations made against his client were “incredible” and he described an affidavit filed yesterday by Mr Palmer as “pretty strange”.

He said Mr Palmer’s private company Mineralogy had also alleged that Citic’s solicitors from law firm Allens were complicit in the theft of the ore.

Mr Scerri did not elaborate on the latest allegations, which came a day after judge Kenneth Martin ordered Citic to hand over $US10.7 million to the cash-strapped Mineralogy.

Citic will also have to deposit another $US10.7m with the court to hold on trust while it and Mineralogy continue their legal brawl over royalties from the Sino Iron mine. Mineralogy owns the leases on which the Citic-operated project was built.

Mr Scerri said Citic was considering an appeal against Tuesday’s ruling, a move that could allow for a stay on the payment order. The Chinese company claims Mr Palmer will struggle to pay back the funds if he loses the royalty dispute case. Justice Martin yesterday gave Citic until January 30 to hand over the money. Mr Palmer, a former federal MP, also stands to receive $US29.8m from Citic — with an extra $US29.8m to be handed to the court — as well as future payments should Mineralogy drop its efforts to terminate Citic’s rights to operate Sino Iron.