China-based iron ore mining company Citic Pacific is being sued by Clive Palmer, landlord of Sino Iron magnetite project in Pilbara accusing the company of not wanting to pay the royalties from the mine.
Palmer has filed a lawsuit in New South Wales Supreme Court for the royalty payment of $202.7m, which Palmer was due to receive on 21 April 2013.
According to the landowner, the company is liable to make a payment for the equivalent of 12 million tonnes of magnetite ore at the prevailing annual market price, which no longer exists, reported The Australian.
Palmer also claimed that the company was avoiding the payment citing its financial difficulty.
Meanwhile, Citic has field a statement with Hong Kong Stock Exchange noting the court order that Palmer sought for the payment of royalty.
However, Palmer said that the company is trying to avoid the payment because they are in financial trouble.
Back in 2006, Citic has entered into an unusual agreement with Palmer, buying only mining rights and left Palmer as the landlord of the mine. Besides, the project is reportedly delayed by three years from its schedule and nearly three times over budget.
Earlier, Palmer has also filed a lawsuit with the federal court seeking better access to the Sino site and in relation to port security arrangements for the mine staff.