An international tribunal affirmed that it lacks jurisdiction over Palmer's dispute with the country
Australia is set to receive a $13.6m payout from Clive Palmer-owned Singaporean company Zeph Investments Pte Ltd after an international tribunal sided with the country.
The dispute was related to the blockage of Palmer’s pitched iron ore project in Pilbara’s Balmoral South. In August 2020, the WA parliament quickly passed the Iron Ore Processing (Mineralogy Pty. Ltd.) Agreement Amendment Bill 2020 to halt Palmer’s $30bn damages claim against the state government over liabilities in relation to the project.
The legislation also served to block existing arbitration between Palmer and WA.
Palmer challenged the law’s validity in the High Court and failed; he proceeded to file a claim against Australia seeking $305bn in damages. He contended that the government’s move violated the ASEAN-Australian-New Zealand free trade agreement.
The Permanent Court of Arbitration concluded that it lacked jurisdiction over Palmer’s dispute with the country and ordered Zeph Investments to foot Australia’s costs, according to a University of NSW press release.
“The Albanese government welcomes the tribunal’s decision. We have vigorously defended this claim from the outset. Mr Palmer is not a ‘foreign investor’ and is not entitled to any benefits under Australia’s free trade and investment agreements. I am pleased that the Tribunal has accepted Australia’s arguments and rejected Mr Palmer’s claim”, Attorney-General Michelle Rowland said.
She added that Australia “should never have had to spend two years and over AU$13 million defending an investor-state claim brought by an Australian national”.
“The Albanese Government remains committed to actively engaging in processes to remove or reform existing investor-State dispute settlement mechanisms”, Rowland said. “We remain hopeful that, with this clear ruling from the tribunal, Mr Palmer will withdraw his remaining international claims against Australia. The government will continue to take all available steps to defend these claims”.
The tribunal’s decision is set to be posted on the Permanent Court of Arbitration’s website once confidentiality concerns have been addressed.
