Mining billionaire Clive Palmer has launched a $300 billion lawsuit against the Australian government over the Balmoral South Iron Ore Project in Western Australia.
Palmer’s Singapore-based company, Zeph Investments, has served a notice of arbitration on the federal government, intending the matter to be heard in Switzerland.
Former federal and WA Attorney-General Christian Porter is among the legal team working for Mr Palmer’s Singaporean company.
The action has provoked a furious response from Western Australia Premier Mark McGowan, who described Mr Palmer as “treacherous” and “the greediest man in Australian history”.
The dispute centres on the WA government’s 2020 legislation that removed Mr Palmer’s ability to extract damages from the state regarding the iron ore project in Pilbara.
For several years, the Balmoral South Iron Ore Project in the Pilbara had been the focus of arbitration, and the decisions made were not in favour of the Western Australian government before the introduction of the legislation. Despite Mr Palmer’s legal challenges against the Western Australian legislation, they were unsuccessful.
A former member of parliament, Mr Palmer is no stranger to lawsuits.
The lawsuits have to be taken seriously, however, given the huge amounts of taxpayer money at stake.
In response to the lawsuit, Federal Attorney-General Mark Dreyfus stated that the latest legal action would be “vigorously” defended.
“The Commonwealth will work with Western Australia to ensure Australia’s interests are protected,” he said.
Patrick Gorman, the Assistant Minister to the Prime Minister, has expressed his opinion.
He said it would be absurd to hand $300 billion of taxpayers’ money to be to Mr Palmer, already one of the richest men in the country.
“No one wants to see another Clive Palmer lawsuit,” he said.
“And no Australian wants to see $300 billion of taxpayers’ money handed over to Clive Palmer in this absolutely ridiculous lawsuit.”
He added that most Australians would be disappointed that taxpayer money and legal resources had to be used to defend these nuisance lawsuits from Mr Palmer.
Mr McGowan didn’t bite his tongue when he echoed Mr Gorman’s sentiments, labelling the lawsuit “pure greed” and promising to support the Commonwealth in fighting the claim.
The premier broke down the $300 billion claim to equalling roughly $11,500 for every person in Australia.
“He wants to rip $300 billion from Australian schools, hospitals, aged care and housing from Medicare and the NDIS, from every Australian,” Mr McGowan said.
Mr Palmer’s list of claims also includes one for $US10 billion for “moral damages”.
According to international law, moral damages can include physical and emotional pain, humiliation, loss of social status, or damage to one’s reputation.
In a statement, Mr Palmer said funds would be used for public good if any windfall was to come to Mineralogy.
He would spend the money on “neglected WA hospitals under the McGowan government” and on a new independent daily newspaper in WA.
Mr Palmer said that “serious questions” needed to be asked about the “lack of media diversity and the consumer’s choice for accurate news”.
The federal government is expected to respond to Zeph’s notice of arbitration within 30 days.
The legal action is likely to be closely watched, given the significant amount of taxpayer money at stake.