UPDATE: Australian mining magnate Clive Palmer has been ordered to pay over $13.6 million following a decisive ruling by the international Permanent Court of Arbitration. The tribunal has rejected Palmer’s claims of being a “foreign investor,” stating it lacks jurisdiction over the dispute involving a national government and one of its citizens. This urgent update comes after a protracted legal battle lasting more than a decade.
Attorney-General Michelle Rowland announced the tribunal’s dismissal on Saturday, emphasizing that “Mr. Palmer is not a ‘foreign investor’ and is not entitled to any benefits under Australia’s free trade and investment agreements.” The government hopes this ruling will lead Palmer to retract other international claims against the Commonwealth but remains prepared to defend those claims vigorously.
Palmer’s Singaporean investment company sought damages nearing $US200 billion (approximately $305 billion AUD) after a mining proposal in the Western Australia Pilbara region was blocked. The case argued that the Australian government breached the ASEAN-Australian-New Zealand free trade agreement. The WA government faced scrutiny over legislation enacted in 2020 that prevented damages related to the dispute, which originated from an initial rejection in 2012.
Palmer characterized the government’s actions as comparable to a “banana republic” in a notice of arbitration submitted to the tribunal after the High Court dismissed his challenge. The tribunal’s recent decision, which includes a cost order for Palmer to pay $13.6 million, is a significant development in this high-stakes legal saga.
The dispute had a three-day hearing focusing on jurisdiction and admissibility in The Hague in September 2024. Experts, including UNSW associate professor Jonathan Bonnitcha, noted the unpredictability of such cases, stating, “Each has a unique combination of arbitrators, and the case documents are not public. Moreover, tribunals are generally sympathetic to foreign investor claims relating to retroactive legislation interfering with ongoing or concluded legal proceedings.”
Palmer’s spokesperson confirmed that he will review the tribunal’s judgment. This ruling marks a pivotal moment in the ongoing legal battles faced by Palmer, underscoring the complexities of international investment disputes and their implications for Australian law and governance.
What’s Next: As the situation develops, stakeholders in Australia’s mining sector and legal community will be closely monitoring any further actions from Palmer, particularly regarding his other claims against the Commonwealth. The outcome of these proceedings could shape future investor-state relations and legal frameworks in Australia.
Stay tuned for more updates as this story unfolds.
