Chinese mining group CITIC and Clive Palmer’s Mineralogy have partially settled their differences, agreeing to submit a crucial mine continuation plan while their Supreme Court trial continues.
They have jointly agreed to submit the Sino Iron project’s 2023 Mine Continuation Proposals to the WA government for consideration and approval.
Mineralogy, which holds the tenements on which the giant mine operates, has for the past 20 months refused to support submission of the MCPs.
That changed two weeks ago, immediately before a long-awaited Supreme Court trial between the two parties was due to commence, when Mr Palmer said he would support submission of an MCP.
Business News understands CITIC rejected an amended version proposed by Mineralogy.
The two parties have subsequently agreed on the MCPs prepared by CITIC.
Despite the belated agreement, the Supreme Court trial between the two parties is continuing.
It is understood CITIC is seeking the certainty of having a Court order compelling Mineralogy to jointly submit the 2023 MCPs.
CITIC is also seeking Court orders to recover the value of lost production from the mine.
It has argued that approvals currently in place impose a physical constraint on the mine’s operations and have forced it to cut mining and processing volumes by 30 per cent.
It says current approvals were only ever designed for the first five years of the project, covering construction, commissioning and early operation.
The 2023 MCPs aim to support continued operation of the Sino Iron project for an interim period until further proposals can be submitted and approved for life-of-mine operations.
CITIC Pacific Mining Chairman Chen (Sam) Sui said Mineralogy’s approval to submit the 2023 MCPs was welcome but long overdue.
“Failure to support their submission until now has placed our project and people under real pressure.
“These challenges won’t go away overnight – we will feel the impact of these unnecessary and unjustified delays for some time.
“Further work is required to secure long-term operational certainty for our project.
“We can now engage with government agencies to secure the necessary approvals so that we can get on the ground to start these vital works as soon as possible.
“It’s a first step in our eventual return to previous production levels.”
The project generated exports worth $3.9 billion in 2023 (latest available data) and employs more than 3,000 people.
CITIC has paid some $3 billion in royalties to Mineralogy, based on a 2005 deal under which the Chinese group mines tenements owned by Mr Palmer’s company.
