Clive Palmer's mining company Mineralogy says billions of tonnes of iron ore will be left in the ground because Chinese company CITIC is denying it access to a Pilbara port.
Mineralogy claims its estranged business partner CITIC should not have exclusive control of port facilities at Cape Preston at the $12 billion Sino iron ore project in Western Australia.
Geological reports show billions of tonnes of magnetite iron ore could be exploited near Cape Preston, but prospective investors are unwilling to finance new mines without guaranteed use of the port, lawyers for Mineralogy say.
"The effect of this is Mineralogy won't be able to say to a prospective financier - we have a port we can use," Simon Couper, a lawyer representing Mineralogy, told the Federal Court in Perth on Wednesday.
"Sino is running a port to the exclusion of others."
Mr Couper said Mineralogy could not guarantee operation of the port.
He added that the company had asked Sino Iron for manuals and specifications so it could train people and maintain port facilities but had never received the materials.
Mineralogy argues it has a right to operate at the port and that the overall concept of a multi-user port was endorsed by Sino Iron and Mineralogy.
But CITIC lawyers said there was a major issue with the terminology used by Mineralogy relating to the port.
"We're not operating the port or shutting anyone out of the port," Dr Andrew Bell SC, a lawyer representing CITIC, told the court.
Justice James Edelman has also allowed the West Australian Attorney General to intervene in the court case between CITIC and Mineralogy.
Justice Edelman said the state was interested in how the mining project would operate and resulting royalty revenue.
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