China has been instrumental in making Clive Palmer a billionaire with a $3.8 billion fortune. Now this fortune is set to rise much higher as a resolution of a legal dispute with Chinese conglomerate CITIC could be resolved soon.
Clive Palmer is an exuberant Australian businessman and politician. He was a member of the Australian Parliament for a brief period of time. He is the 743rd richest person in the world, according to Forbes. His fortune is set to soar even higher as a long standing dispute concerning his business interests with a Chinese company might be resolved with a new agreement.
In 2006, Palmer reached an agreement with CITIC, a Chinese conglomerate for a series of mining claims. According to the deal he sold the claims for $415 million with ongoing royalties that would be paid for every ton of ore that would be mined.
A recent estimate, based on the high price of iron ore in the market indicates that Palmer would collect around $1 million a day in royalties as per the original deal.
The new agreement that has taken years of negotiations, including a few acrimonious ones, should give CITIC rights to mine an additional one billion tons of iron ore. This will be mined from the tenements that are controlled by the principal company Mineralogy that was founded by Clive Frederick Palmer in Brisbane, Queensland.
According to a report by the Australian Financial Review (AFR) Justice Ken Martin handed a decision that Palmer would receive $142 million as a one-off payment. He would also receive $250 million per year in royalties, after mining begins.
The court judgement reportedly gives both the parties 21 days to consider their position. If they are in agreement with the terms, Judge Martin will hand down final orders.
According to the outlet, Palmer expressed that he was satisfied with the court’s decision.
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