Clive Palmer Ordered to Pay Millions After "Foreign Investor" Claim Dismissed
Australian mining magnate Clive Palmer has been ordered to pay over $13 million after an international tribunal rejected his claim of being a "foreign investor" in an Australian mining project. The decision follows a lengthy dispute regarding a mining proposal in Western Australia's Pilbara region.
Tribunal Rejects Palmer's Claim
The Permanent Court of Arbitration, established by international treaties, ruled it had no jurisdiction over the dispute. Attorney-General Michelle Rowland stated that the court rejected Palmer's claim because it involved a national government and one of its citizens.
"Mr Palmer is not a 'foreign investor' and is not entitled to any benefits under Australia’s free trade and investment agreements," said Rowland. She further added, "Australia should never have had to spend two years and over $13 million defending an investor-state claim brought by an Australian national."
Background of the Dispute
A Singaporean investment company owned by Palmer, Zeph Investments Pte Ltd, sought almost $US200 billion ($A305 billion) in damages after a mining proposal in the WA Pilbara region was blocked. The case argued breaches of the ASEAN-Australia-New Zealand Free Trade Agreement.
The Western Australian government's legislation preventing damages in relation to the dispute, dating back to an initial rejection in 2012, also came under scrutiny. Palmer had claimed the process was "akin to the actions of a banana republic" in a notice of arbitration after the High Court rejected his challenge.
Implications and Future Claims
The government hopes the tribunal's ruling will prompt Palmer to withdraw other international claims against the Commonwealth, but it will continue to defend them. Jonathan Bonnitcha, a UNSW law associate professor and international-state dispute settlement expert, noted that such arbitration courts operate under a system allowing foreign investors to sue the state they invested in, outside that state's courts.
While the current decision may influence future tribunals, precedents are not binding under the system. Bonnitcha suggested it is "probably unlikely" Palmer will drop the other cases and that there is no guarantee future tribunals will follow the most recent decision.
Palmer's Political Involvement
In addition to being one of Australia's wealthiest citizens, Clive Palmer is a prominent figure in Australian politics. He has chaired multiple parties and represented the Queensland seat of Fairfax in federal parliament. His political messaging often contrasts with his actions, as his foreign investor claim clashes with his nationalistic rhetoric.
His campaign for the 2025 election under the Trumpet of Patriots banner, which included a call for Australians to "wake up," did not result in any of the party's candidates being elected.
The Tribunal's Decision and Palmer's Response
The tribunal's decision, which has yet to be made public, orders Palmer to pay costs of $13.6 million, according to Rowland. A spokesperson for Palmer has stated that he will review the judgment. The dispute was subject to a three-day hearing in The Hague in September 2024.
Patricia Ranald, from the Australian Fair Trade and Investment Network, criticized Palmer’s claim, calling it an example of "the absurdity" of international-state dispute settlement and highlighting the risk of further claims from other investors.
