Mineralogy (mining company)

Mineralogy is a mining company owned by Clive Palmer of Queensland, Australia. Mineralogy's mining projects are now producing and generating income.

Mineralogy
TypePrivate
IndustryMining
Founded1984
FounderClive Palmer
ProductsIron ore
  • A$354 million (2018 Audited)
Total assets
  • A$594 million (2018 Audited)
Total equityA$450 million (2018 Audited)
OwnerClive Palmer
Websitewww.mineralogy.com.au

Mineralogy 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.[1] The agreement involves 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.[1] Mineralogy was paid US$415 million for the rights to mine the ore.[2] According to Palmer the reserves contain 160 billion tonnes of iron ore.[3]

The company owns thermal coal deposits situated in the Galilee Basin.[4] Estimates of the size of the deposits reach 100  billion tonnes of coal.[5]

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.[6]

The CITIC parties appealed the decision of the trial judge to the Court of Appeal, but lost.[7]

The outcome of the proceedings above is that Mineralogy received US$350 million with ongoing royalties of US$ 200 million annually.[8] As at 30 June 2018, Mineralogy had consolidated Net Asset Position reported at a value of AUD $450,959,878 (audited).[9]

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 Blue Star Line to build Titanic II.[10] Blue Star Line is a subsidiary company of Mineralogy.

Titanic II is forecasted to set sail in 2022, and to follow the original route of the Titanic.[11]

See also

References
  1. "Mineralogy sign $5b iron ore deal". The Age. 3 April 2006. Retrieved 10 November 2011.
  2. Fraser, Andrew; Burrell, Andrew (13 February 2010). "The magnate's Chinese whispers". The Australian. Retrieved 10 November 2011.
  3. "Clive Palmer". Gold Coast Bulletin. 7 June 2008. Retrieved 14 April 2012.
  4. "Magnate's company paid no tax". Brisbane Times. 12 April 2012. Retrieved 27 April 2012.
  5. Khadem, Nassim (30 November 2011). "Meet Clive Palmer: Busy one day, frantic the next". BRW. Archived from the original on 23 September 2015. Retrieved 14 April 2012.
  6. "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.
  7. "Sino Iron Pty Ltd -v- Mineralogy Pty Ltd [2019] WASCA 80". eCourts Portal of Western Australia. 21 May 2019. Retrieved 8 July 2019.
  8. "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.
  9. "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.
  10. "PALMER BUILDING TITANIC ll -". 27 September 2018. Retrieved 8 July 2019.
  11. Deabler, Alexandra (28 October 2018). "Titanic II to set sail in 2022, following original route". Fox News. Retrieved 8 July 2019.
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