Mining billionaire Clive Palmer has been ordered to pay more than $13 million after an international tribunal dismissed his claim of being a foreign investor.
The dispute focused on Western Australian government legislation in 2020, which impeded his ability to pursue $30 billion in damages against the Western Australia government.
Mr Palmer claimed the law change was “targeted, weaponised legislation of an unprecedented nature”.
The case related to the government’s initial refusal in 2012 to allow him to develop the Balmoral South iron ore project in the Pilbara region.
In 2021, the High Court ruled unanimously that the law passed by the WA government to prevent Mr Palmer from suing it was valid.
Having exhausted legal challenge options in Australia, Mr Palmer still had other options under international law.
The claim was brought before the Permanent Court of Arbitration, which is an intergovernmental organisation, by Singaporean company Zeph Investments, which is owned by Mr Palmer.
The case against the Commonwealth argued breaches of the ASEAN-Australia-New Zealand free trade agreement.
Michelle Rowland has welcomed the international tribunal’s decision. (ABC News: Matt Roberts)
Attorney-General Michelle Rowland said the international tribunal had rejected Mr Palmer’s claim against Australia, finding it had no jurisdiction over the dispute.
She said he had been ordered to pay Australia’s costs of $13.6 million.
“Mr Palmer is not a ‘foreign investor’ and is not entitled to any benefits under Australia’s free trade and investment agreements,” Ms Rowland said.
Decision welcomed by governments
Ms Rowland welcomed the decision, saying the government had “vigorously defended this claim from the outset”.
She said she hoped the decision would see Mr Palmer withdraw remaining international claims against Australia, but that the government would continue to defend them.
Ms Rowland said the government should never have had to spend over $13 million defending the claim.
“The Albanese government remains committed to actively engaging in processes to remove or reform existing investor-State dispute settlement mechanisms.”
In a social media post, Western Australian Premier Roger Cook said the case against Western Australia would have “bankrupted” the state if successful.
“I trust this decision will finally close the book on this long-running saga,” he said.
A response from Mr Palmer’s office said he would review the judgement.
It is understood he can still seek to challenge the decision through the Federal Supreme Court of Switzerland.