- Write by:
-
Thursday, April 1, 2021 - 1:31:34 PM
-
633 Visit
-
Print
Mining News Pro - CITIC is set to strike a deal with Mineralogy chairman Clive Palmer to mine a further one billion tonnes of iron ore in Western Australia.
The move follows a judgment from the Supreme Court of Western Australia, where Justice Ken Martin ordered CITIC and Mineralogy to resolve their dispute.
This stems to the China project option agreement (CPOA), in which CITIC paid $US15 million ($19.7 million) to Palmer’s Korean Steel and Sino Iron companies with the option to acquire other companies controlled by Palmer, along with rights to access a billion tonnes of iron ore.
CITIC has allegedly been unsuccessful in pursuing the agreed option with Palmer, and has since taken the matter to the Supreme Court.
Tuesday’s draft orders by Justice Martin mapped out the terms for CITIC to acquire Palmer’s Balmoral Iron as an option for the CPOA.
Balmoral would provide CITIC with the ability to mine a further one billion tonnes of magnetite iron ore through the Balmoral South iron ore project in the Pilbara region of Western Australia.
Mineralogy declared Balmoral South as the world’s largest undeveloped magnetite resource.
Justice Martin gave both parties 21 days to consider the final orders of the judgment, with six months to finalise the transaction.
“Effectively, that transaction would see an acquisition of extensive and valuable contractual rights as held by Balmoral Iron (granted to it by Mineralogy) – to a further billion tonnes of magnetite ore in Area A and to other contractual rights,” Justice Martin said.
“All these valuable contractual rights had earlier been obtained by Balmoral Iron from Mineralogy, at the time when the corporation was a wholly owned subsidiary of Mineralogy.”
According to Mineralogy, it has the right to mine one billion tonnes of magnetite iron ore from Balmoral South’s Susan Palmer deposit.
The project is being developed by Mineralogy subsidiary International Minerals.
“There looks to be every good economic reason why an expansion proposal of this character for an established resource project would contribute greater economic benefits to the CITIC plaintiffs and indeed to the West Australian and Australian economies – by fostering even greater magnetite iron ore production and processing,” Justice Martin said.
“That should, in the end, lead to increased prosperity and stability of the employment for the existing workforce and, of course, to enhanced royalty payments to the West Australian and commonwealth governments.”
Short Link:
https://www.miningnews.ir/En/News/611984
Iron ore futures prices drifted higher on Thursday as the latest soft data from top consumer China triggered renewed ...
Vitol Group confirmed that it’s starting to rebuild a trading book for metals after a long stint out of the market, with ...
Australia’s Fortescue said on Monday it would form a joint venture with OCP Group to supply green hydrogen, ammonia and ...
Iron ore reversed direction after dropping to its lowest level in 10 months as optimism that the country’s economic ...
Iron ore reversed direction after dropping to its lowest level in 10 months as optimism that the country’s economic ...
Nippon Steel intends to pursue its proposed acquisition of US Steel and wants its “deep roots” in the United States to ...
Nigeria will only grant new mining licences to companies that present a plan on how minerals would be processed locally, ...
Iron ore pellet producer Ferrexpo said a court has prohibited the transfer of ownership and other shares-related ...
Iron ore futures edged higher on Monday, supported by hopes of further recovery in demand in top consumer China and ...
No comments have been posted yet ...