Failure by the Premier: Court rules in favour of Mineralogy



29 Aug 2014 - The Barnett Government has been ordered to pay $56,631 in court costs plus damages to companies Mineralogy and International Resources as a result of the Premiers failure to give a decision on a proposed development within the time required under the State Agreements Act. The companies are controlled by Clive Palmer. .

The confidential ruling ordering the payment s by the WA State Government to the Mineralogy and International Resources were tabled by the state leader of the Queensland Palmer United Party in June 2014 in the Queensland Parliament under parliamentary privilege.

Former High Court Judge Malcolm McHughs' ruling stated that Premier Colin Barnett, in his role as Minister for State Development, failed to give a decision on a proposal for an iron ore project at Balmoral South inside the required time. Under the State Agreements Act the Premier could either accept or request changes to the proposal, but was not empowered to simply ignore it. 

As a result, the arbitrator ruled in favour of Mineralogy and International Resources companies, ordering the State to pay the court costs ($56,631.98) plus damages.

At this stage, a claim is yet to be lodged for damages, but the Australian Financial Review has reported that the figure is "expected to run into the hundreds of millions of dollars". Australian Financial Review 7/6/14

The Premier Colin Barnett confirmed through questions in Parliament that the State Government has paid the arbitrators costs and expenses but that the damages claim is yet to be made by Mineralogy.  Hansard 12/8/14