News
Supreme Court of Western Australia Judgment: Mine Continuation Proposals (MCPs)
- Details
Earlier today, Justice Kenneth Martin of the Supreme Court of Western Australia (“Supreme Court”) delivered his reasons in the proceedings commenced by CITIC Limited and its subsidiaries Sino Iron Pty Ltd and Korean Steel Pty Ltd (“CITIC”) against Mineralogy Pty Ltd and Mr Clive Palmer in relation to the Sino Iron Project.
CITIC sought orders to compel Mineralogy (as tenement holder) to:
In its reasons, the Court:
While not operationally and financially optimal, this should enable continued operation for a further interim period, allowing CITIC further time to take the necessary steps to seek to secure the additional tenure required for life of mine operations.
The following comments can be attributed to CITIC Pacific Mining Management Pty Ltd Chairman, Mr Chen Zeng:
“We will carefully consider the full implications of the Court's lengthy judgment."
“We are pleased that the Court found that Mineralogy is obliged to either consent to CITIC submitting the long-awaited programme of works, or submit the programme of works itself. This paves the way for commencement of the investigative works necessary for the extension of the mine pit and a new tailings storage facility."
"The Court's findings that Mineralogy is contractually obliged to provide assistance towards the submission and approval of a State Agreement project proposal for the areas within the site lease area currently held by CITIC, will enable CITIC to pursue, as an interim measure, a revised form of State Agreement proposal in respect of those areas."
"CITIC has made a significant investment in Sino Iron, pioneering a new downstream processing industry for Western Australia, and delivering jobs and other major economic benefits for the local community, as well as Mineralogy directly."
“We have said consistently that Sino Iron requires the cooperation of all stakeholders to reach its full potential. That remains the case."
“We will continue to do everything possible to put Sino Iron on a long-term sustainable footing, for the benefit of all.”
ENDS
CITIC sought orders to compel Mineralogy (as tenement holder) to:
- submit to the State for approval a programme of works ("PoW") for time-critical investigative works;
- submit to the State Mine Continuation Proposals ("MCPs") to support the long-term operation of the Sino Iron Project;
- make available additional tenure required for the long-term operation of the project; and
- seek the repurposing of some tenements to allow the mine continuation activities to be carried out on them.
In its reasons, the Court:
- confirmed that Mineralogy is obliged to either consent to CITIC submitting the long-awaited PoW or submit the PoW itself, paving the way for commencement of the investigative works necessary for the extension of the mine pit and a new tailings storage facility;
- declined CITIC's request for the submission of the mine continuation proposals in their current form and the additional tenure which the CITIC Parties sought; and
- held that Mineralogy is contractually obliged to provide assistance and cooperation towards the submission and approval of a State Agreement project proposal for the areas within the site lease area currently held by CITIC. This will enable CITIC to pursue a revised form of State Agreement proposal, including, in the first instance, a further interim proposal confined to the existing site lease area.
While not operationally and financially optimal, this should enable continued operation for a further interim period, allowing CITIC further time to take the necessary steps to seek to secure the additional tenure required for life of mine operations.
The following comments can be attributed to CITIC Pacific Mining Management Pty Ltd Chairman, Mr Chen Zeng:
“We will carefully consider the full implications of the Court's lengthy judgment."
“We are pleased that the Court found that Mineralogy is obliged to either consent to CITIC submitting the long-awaited programme of works, or submit the programme of works itself. This paves the way for commencement of the investigative works necessary for the extension of the mine pit and a new tailings storage facility."
"The Court's findings that Mineralogy is contractually obliged to provide assistance towards the submission and approval of a State Agreement project proposal for the areas within the site lease area currently held by CITIC, will enable CITIC to pursue, as an interim measure, a revised form of State Agreement proposal in respect of those areas."
"CITIC has made a significant investment in Sino Iron, pioneering a new downstream processing industry for Western Australia, and delivering jobs and other major economic benefits for the local community, as well as Mineralogy directly."
“We have said consistently that Sino Iron requires the cooperation of all stakeholders to reach its full potential. That remains the case."
“We will continue to do everything possible to put Sino Iron on a long-term sustainable footing, for the benefit of all.”
ENDS