Mr Palmer owns almost 70 per cent of australasian, which owns the Balmoral South iron ore project in The Pilbara, 80 km southwest of Karratha. Balmoral South has a mineral resource estimate of 1.6 million tonnes. The company also owns two nickel projects. The dispute took root in 2012 and 2013, when Mineralogy submitted development proposals for the Balmoral South Iron Ore Project (BSIOP) and a related state agreement between the VA government and Mineralogy in collaboration with other parties. A key clause in the emergency laws introduced by Mr. Quigley to break down a massive payment is to “end any arbitration proceedings involving the state, mineralogy and international minerals and which concern a contentious case.” Mineralogy responded by placing the case before an arbitration tribunal under the terms of his state agreement and won almost every round of the trial, as the case comes to a head before former High Court judge Michael McHugh. The government says its claim is worth $30 billion and would lead the state to bankruptcy if mediation, led by former High Court judge Michael McHugh, was in Palmer`s favor. At a press briefing on the Gold Coast, Palmer said he was “disappointed” that the government had taken a “confrontational approach” instead of continuing the mediation process and found that it had not constituted a legal right of AUD 30 billion, but that it was an assessment by the state government. The mineralogy is expected to sue the government for AUD 30 billion as part of the Balmoral South project, a dispute following a 2012 government decision to reject the mining proposal. “If the plaintiffs were to take their action for damages at a level close to the amount sought, this would obviously have terrible financial consequences for the state of the VA and Western Australia,” he said. “It would be fiscally irresponsible for this claim to continue and for the state and Western Australia to be exposed to the risk, or even the possibility, of having to pay Mr Palmer. Mineralogy and International Minerals, which could be tens of billions of dollars,” Quigley said.
The dispute follows a 2002 agreement between Mr. Palmer and the state regarding mining leases in the Pilbara area. “This emergency law is unconstitutional, the VA state wants to reject the risk of the VA to the federal government.