CHINESE company CITIC claims it's the only company entitled to operate a Pilbara iron ore port, but insists it is not shutting Clive Palmer's company out.
MR Palmer's mining company Mineralogy says billions of tonnes of iron ore will be left in the ground because CITIC is denying it access to a port at Cape Preston in Western Australia.
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.
It 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 the parties had bound themselves to each other and the state of Western Australia to implement the project and CITIC was the only party legally entitled to operate the port.
"That requires the project to be operated by us," Dr Andrew Bell SC, a barrister representing CITIC, told the Federal Court in Perth on Wednesday.
"We're not operating the port or shutting anyone out of the port."
He said the operator had to have the means to fund and operate the project and there was a major issue with the terminology used by Mineralogy relating to the port.
Lawyers for Mineralogy say 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.
"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 barrister representing Mineralogy, told the court.
"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.
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.
The parties and Justice Edelman will tour the Cape Preston port on Thursday.
Source: news.com
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