Clive Palmer loses in latest legal round against Chinese company CITIC

The Federal Court in Perth has dismissed federal MP Clive Palmer's application challenging CITIC's maritime security plan at Cape Preston in Western Australia's Pilbara region.

PUP leader Clive Palmer leaves after a press conference at Parliament House in Canberra. (File: AAP)

The decision is a setback in Mr Palmer’s long-running battle to take control of the port from Citic.

In November last year, the federal Infrastructure Department accepted CITIC's saftey plan for the iron ore export port which it operates and leases from Clive Palmer's company, Mineralogy.

Mineralogy argued in court earlier this month that the department had made the wrong decision when it appointed security at Cape Preston to CITIC over Mineralogy.

In his judgement, Justice Neil McKerracher said Mineralogy's arguments "cannot be sustained".

"I have rejected Mineralogy’s arguments on each point."

He has ordered Mineralogy to pay Citic’s legal costs.

More details to come.