Citic loses appeal, must keep paying Clive Palmer iron ore royalties

Clive Palmer's estranged Chinese joint venture partner has largely lost an appeal over royalties from their massive iron ore project in Western Australia's Pilbara.

Citic built the multi-billion dollar Sino Iron project on land owned by Mr Palmer's private company Mineralogy, and has been mining ore since 2013, but the parties have been locked in a dispute over how to calculate the royalties.

A WA Supreme Court judge ruled against Citic in 2017, ordering it to pay Mineralogy $US149.4 million.

Two parts of a three-pronged challenge by Citic were dismissed in the WA Court of Appeal on Tuesday.

The Chinese government-owned company said it was disappointed by the judgment.

Mineralogy declared it a significant win.

"[Citic] continue to accumulate ongoing court losses under Australian law," Mr Palmer said.

The companies are currently embroiled in separate legal battles, with Citic claiming Mineralogy has refused to join its efforts seeking state government approval for additional land needed to expand.

Mineralogy claims Citic should have put $500 million into an environmental rehabilitation fund.

Citic has previously warned the disputes and Mineralogy's "uncooperative" approach posed a threat to the future of Sino Iron, which employs about 3000 workers and contractors.

"Our challenges are well-publicised but we will continue to do everything possible to put Sino Iron on a long-term sustainable footing, for the benefit of all Western Australians," Citic said in a statement on Tuesday.

The WA government is looking into intervening in the bitter impasse by amending the state's legally binding agreement with the companies covering the project.

"Why is the WA government interfering in a commercial transaction? Our politicians need to act independently and not interfere with court processes,'" Mr Palmer said.

The billionaire has called on Premier Mark McGowan to resign over the potential intervention, accusing him of being disloyal to Australia.

Mr McGowan has labelled the Queenslander a "menace".

AAP