Continued Chinese investment into Western Australia could hinge on a fair outcome in the long-running dispute between CITIC Pacific and Clive Palmer's Mineralogy, according to Consul General Zhihua Dong.
Continued Chinese investment into Western Australia could hinge on a fair outcome in the long-running dispute between CITIC Pacific Mining and Clive Palmer's Mineralogy, according to Consul General Zhihua Dong.
In an unusual step for a diplomat, Ms Dong used yesterday's China-Western Australia Strategic Symposium to publicly urge the state government to find a solution to the dispute.
Chinese government-backed CITIC Pacific invested more than $10 billion into the Sino Iron mine, which produces magnetite.
But the value of the project has been written down significantly.
The tenement is sub-leased from Mineralogy.
Mineralogy and CITIC had a series of legal disputes, including over royalty payments, and more recently, approvals for rock and tailings storage facilities at the mine.
The state government is party to the latter court case through the state agreement system.
Ms Dong said WA needed to create a more favourable environment for Chinese enterprises.
“Under the current circumstances of our bilateral relations … WA should makle sure Chinese enterprises are treated equally and fairly,” she said.
“And the approval of new projects are not (delayed) by … political issues.
“I would like to mention, and this is one of the priorities … a fair and reasonable solution to the legal battle over the Sino Iron ore project.
“(That) would send a positive signal for Chinese investors.
“We urge the state govt to help find a solution.”
Ms Dong also highlighted the Chinese government’s Belt and Road infrastructure initiative, saying WA should adopt a more positive position.
Locally, she supported infrastructure projects to ease access to resources deposits for investment opportunities.
Tourism and education also have potential, but WA was falling behind the eastern states, Ms Dong said.
"Back in China, Perth is not that well known," she said.
"There are people in my friend circle, well-educated, who do not know where Perth is.
"The stereotype in people's minds is the isolation."
Credit to them
Pilbara Minerals chief executive Ken Brinsden also had a strong view on how WA can sharpen up its relationship with China.
“We should get over ourselves,” Mr Brinsden said.
“We make some pretty gross assumptions that get in the way.”
Those included suspicions that China was trying to steal technology or land.
It has been reported that 70 per cent of software used in China is pirated, with some reports suggesting intellectual property theft by China costs the US up to $US600 billion a year.
Mr Brinsden said Australia could learn from China in the new energy market.
“We spend a lot of time in the western world fretting about the control of the critical mineral supply chain that China now has,” he said.
“That says so much more about the western world’s lack of appetite to take risk.
“China has got on with it ... full credit to them.”
