Palmer wants PM to intervene on 'leak'

CLIVE Palmer called on Kevin Rudd  to prevent any leaking by the government of confidential information about the tycoon.

CLIVE Palmer called on Kevin Rudd yesterday to take urgent steps to prevent any leaking by the federal government of confidential information about the tycoon's business interests.

Senior public servants in Deputy Prime Minister Anthony Albanese's Department of Transport have begun taking steps to strip Mr Palmer's company, Mineralogy, of the role it was formally designated five months ago in the operation of the West Australian port of Cape Preston, site of a $7 billion-plus iron ore project controlled by China.

The policy reversal, which is backed by the state government of Premier Colin Barnett and Chinese-owned company CITIC Pacific, was revealed in The Australian yesterday.

Mr Palmer said: "Mineralogy is disappointed that limited confidential communications and information appear to have been cited by The Australian newspaper and the ABC website, as provided by government sources with encouragement from Mr Albanese's office and in breach of obligations owed by public servants to keep the matter confidential.

"As I'm standing for prime minister in the next federal election I find this most disturbing and call for Kevin Rudd to discuss this matter urgently with his deputy to ensure that the commercial business of the government won't be abused," Mr Palmer said.

Mr Palmer regards his company, Mineralogy, as the legal operator of the port, and said Mr Barnett would need to pay him billions to forfeit the role.

The West Australian government believes Mr Palmer has neither the right nor the credentials to operate the remote port or to be responsible for its security.

The port near Karratha was built by CITIC Pacific at a cost of several hundred million dollars to enable the export of iron ore.

"Mineralogy holds exclusive rights of occupation over the land at that port. On 31 January, 2013, Mineralogy was gazetted by the federal government as the port operator for the purpose of federal maritime transport and offshore securities laws," Mr Palmer said.

"Those federal laws relate to the security of ports around Australia. They deal with matters such as terrorism and other security threats and in no way relate to the commercial operation of the port in a commercial sense.

"My understanding is that after the removal of Julia Gillard and the appointment of Kevin Rudd as Prime Minister, his deputy, Anthony Albanese, gave directions to remove Mineralogy in this matter.

"That appointment is separate from Mineralogy's legal and commercial rights in the port under existing West Australian state legislation with project proponents, including the CITIC parties amongst others."

Senior government sources have told The Australian that Mineralogy would not be permitted to operate the port or to be responsible for its security.