Mineralogy (mining company)
Mineralogy is an Australian mining company owned by Clive Palmer. The company is involved in mining exploration and development, principally iron ore, in Western Australia. Mineralogy had assets of A$594 million in 2018. It entered a US$415 million arrangement with the Chinese company CITIC in 2006. Mineralogy and CITIC have been in legal disputes over royalties and other matters since 2013.
| Company type | Private |
|---|---|
| Industry | Mining |
| Founded | 1984 |
| Founder | Clive Palmer |
| Headquarters | Australia |
| Products | Iron ore |
| |
| Total assets |
|
| Total equity | A$451 million (2018 Audited) |
| Owner | Clive Palmer |
| Subsidiaries | Waratah Coal |
| Website | www |
History edit
Mineralogy was founded in 1984 by Clive Palmer, who had become wealthy through property development in the Gold Coast. In 1985, the company acquired exploration leases for magnetite tenements in Cape Preston, Pilbara, from the U.S. iron ore processor M. A. Hanna Company. Palmer transferred the tenement's soon-to-expire exploration rights to his Queensland property company, GSS Homes.[1]
In 2006, it signed a deal with the Chinese infrastructure company CITIC Pacific to develop a small portion of a large iron ore deposit in the Pilbara region of Western Australia.[2] The agreement involved the development of two magnetite mines and construction of port infrastructure at Cape Preston. According to Palmer the company owns more than 1,000 square kilometres (390 sq mi) of land in the region.[2] Mineralogy was paid US$415 million for the rights to mine the ore.[3] According to Palmer the reserves contain 160 billion tonnes of iron ore.[4]
In 2009, Mineralogy acquired the Australian coal mining company Waratah Coal. By 2012, Mineralogy acquired the rights to thermal coal deposits situated in the Galilee Basin.[5] Estimates of the size of the deposits reach 100 billion tonnes of coal.[6]
Mineralogy has been in a long-running legal dispute with CITIC Limited's (formerly CITIC Pacific Limited) Australian subsidiary companies that are exploiting the magnetite mine in the Pilbara region of Western Australia. In 2013 Mineralogy commenced legal proceedings to resolve a dispute about royalties it claimed to be due to it, which in 2017 the Western Australian Supreme Court delivered judgement in favour of Mineralogy.[7] The CITIC parties appealed the decision of the trial judge to the Court of Appeal, but lost.[8]
The outcome of the proceedings above is that Mineralogy received US$350 million with ongoing royalties of US$ 200 million annually.[9] As at 30 June 2018, Mineralogy had consolidated Net Asset Position reported at a value of AUD $451 million (audited).[10]
On 27 September 2018, Clive Palmer also confirmed that as a result of the wins in the Western Australian Courts and the subsequent payments of royalties to Mineralogy, work has re-commenced by Mineralogy subsidiary Blue Star Line to build the ocean liner Titanic II.[11] The ship was forecast to set sail in 2022, and to follow the original route of the Titanic.[12]
Mineralogy took Western Australia to the High Court over the Iron Ore Processing (Mineralogy Pty Ltd) Agreement Amendment Act 2022 in Mineralogy v Western Australia, but lost.[13]
As of 2023, Mineralogy has ten exploration and prospecting permits in New Zealand, spanning over 306,000 ha (760,000 acres), over 93,000 ha (230,000 acres) of which overlap with conservation land, including near Lake Brunner.[14]
Political donations edit
Clive Palmer established the United Australia Party in 2013. In 2022, Mineralogy donated $116 million dollars to the United Australia Party, which won a single seat in the upper house in the 2022 federal election.[15][16]
See also edit
References edit
- ^ Barrett, Jonathan (13 June 2014). "The mythology behind Clive Palmer's Mineralogy". Australian Financial Review.
- ^ a b "Mineralogy sign $5b iron ore deal". The Age. 3 April 2006. Retrieved 10 November 2011.
- ^ Fraser, Andrew; Burrell, Andrew (13 February 2010). "The magnate's Chinese whispers". The Australian. Retrieved 10 November 2011.
- ^ "Clive Palmer". Gold Coast Bulletin. 7 June 2008. Retrieved 14 April 2012.
- ^ "Magnate's company paid no tax". Brisbane Times. 12 April 2012. Retrieved 27 April 2012.
- ^ Khadem, Nassim (30 November 2011). . BRW. Archived from the original on 23 September 2015. Retrieved 14 April 2012.
- ^ "Mineralogy Pty Ltd -v- Sino Iron Pty Ltd [No.16] [2017] WASC 340". eCourts Portal of Western Australia. 24 November 2017. Retrieved 8 July 2019.
- ^ "Sino Iron Pty Ltd -v- Mineralogy Pty Ltd [2019] WASCA 80". eCourts Portal of Western Australia. 21 May 2019. Retrieved 8 July 2019.
- ^ "2018 AFR Rich List: Clive Palmer is back and has his eye on top spot". Australian Financial Review. 18 May 2018. Retrieved 8 July 2019.
- ^ "Financial Report Financial Report - Large Proprietary Company That Is Not A Disclosing Entity (FR 2018) (388H)' filed with the Australian Securities and Investments Commission". Australian Securities and Investments Commission. 5 December 2018. Retrieved 8 July 2019.
- ^ "PALMER BUILDING TITANIC ll -". 27 September 2018. Retrieved 8 July 2019.
- ^ Deabler, Alexandra (28 October 2018). "Titanic II to set sail in 2022, following original route". Fox News. Retrieved 8 July 2019.
- ^ "Clive Palmer suffers major blow in $30 billion damages claim against WA over iron ore project". ABC News. 25 November 2020. Retrieved 13 September 2022.
- ^ Norman, Cushla (25 May 2023). "Mining giant sets sights on NZ, including conservation land". 1News.
- ^ "Clive Palmer's company gave $116m to his political party before the federal election". ABC News. 1 February 2023. Retrieved 15 February 2023.
- ^ Knaus, Christopher; Evershed, Nick; Karp, Paul (1 February 2023). "Clive Palmer's mining company pumped $116m into UAP at 2022 election, helping it outspend major parties". The Guardian. ISSN 0261-3077. Retrieved 15 February 2023.
External links edit
- Company website