Author: Paul Ploumis26 Sep 2014 Last updated at 08:00:07 GMT
CANBERRA (Scrap Monster): The company has already, sent the China state owned Citi Pacific, that’s their right over the Sino Iron Ore project will be terminated within 21 days. The director of Minerology, Clive Minesink stated that, the company has served a default notice to the company on the basis losses worth billions of dollars, two years ago and the issue hadn’t been raised since. He also stated that, Citi Pacific Ltd, had failed both in rectifying the defaults included in the notice as well as in making declarations regarding the notice to the Honk Kong market, thus breaking law at some point.
He also stated that the company had plans to complain, to the Honk Kong authorities regarding the company’s failure in informing the market about the default notice, which was issued in the year 2012. He further stated that, the capital cost of the Sino Iron Ore project, is more than 8 billion dollars, and the failure of the Chinese company to inform the stock market could be criminal offenses.
Mineralogy has been involved in many Australian legal battles with Citi Pacific, regarding Sino Iron Ore project and Minerology states that it is being owed by Citi Pacific. At the same time Citi Pacific has filed lawsuit against the company stating that, Palmer misused the funds which were set aside for the port of the mine for his election campaign.
The relationship between the two companies further soured after, Palmer stated the government of China as ‘bastards’ and ‘mongrels’ ‘who shoot their own people’, for which he later apologized.