Palmer sues CITIC in conspiracy claim

Clive Palmer has launched another legal action against CITIC and its executives, alleging they conspired to injure and embarrass him through court proceedings over the past decade.

The mining magnate and his company Mineralogy have lodged a writ in the Supreme Court of Western Australia against CITIC Limited, and its subsidiaries and executives.

In the 35-page writ obtained by Business News, CITIC Limited, Korean Steel, Sino Iron, CITIC deputy director Helen Dillon and chief executive Chen Zeng are listed as defendants.

Mineralogy and CITIC had a business relationship to develop magnetite ore in the Sino Iron project but relationship between the parties has since soured, with both involved in legal proceedings over royalties’ payment in the past decade.

Mr Palmer claimed, in the writ, that the defendants conspired and combined together wrongfully intending to injure him or Mineralogy since 2010.

The writ said by reason of conspiracy to injure Mr Palmer and Mineralogy, the defendants were liable over the loss the Queensland-based mining magnate and his company had incurred.

Mr Palmer further alleged the defendants applied illegitimate commercial pressure to Mineralogy and altered the terms of the agreements the parties have signed.

In 2014, Sino Iron and Korean Steel launched legal proceedings claiming Mr Palmer wrongfully paid Cosmo Developments and Media Circus network a total of $12.17 million, alleging he drew the money from the parties’ administrative fund.

In the writ, Mr Palmer claimed the CITIC subsidiaries launched the Cosmo proceedings to embarrass him and generate adverse publicity against him.

After an investigation, in 2020, the Australian Securities and Investments Commission alleged Mr Palmer dishonestly obtained a benefit by authorising the $12.17 million transfer contrary to the purpose for which the funds were being held.

Mr Palmer alleged the CITIC parties tattled to ASIC and caused a criminal proceeding not because of a genuine intention, but to apply commercial pressure to him and Mineralogy, according to the writ.

Mr Palmer also alleged CITIC subsidiaries did not inform the court that Mineralogy had offered a refund but they continued with the legal proceedings after receiving the offer.

In the writ, Mr Palmer claimed CITIC misused the legal processes and described some of the proceedings as “an abuse of process”.

The writ said CITIC raised its concerns over a $12.17 million cheque Mr Palmer made to other entities.

Mineralogy and Mr Palmer claim damages and costs incurred in prosecuting and defending the legal processes.

The Sino Iron project had cost pressures early on, according to the writ.

The writ said the projected capital expenditure increased from $US$2.5 billion to $US3.5 billion by the end of 2007.

CITIC Limited declined to comment.

In previous legal proceedings, Mr Palmer alleged Sino Iron, Korean Steel, and CITIC failed to pay royalties over the ore developed on Mineralogy-owned tenements.

According to the Supreme Court writ, Mr Palmer claimed royalties became payable in 2008, when Sino Iron and Korean steel began taking magnetite ore.

Mr Palmer sued CITIC and its subsidiaries in 2012, and the Supreme Court has since made dozens of rulings related to the ongoing and complex dispute among the parties.