CITIC profits on Mineralogy’s high-grade ore: Palmer

Media Release

Mineralogy’s high grade iron ore was the reason Chinese government-owned Citic Limited was able to post huge profit increases amidst a global market downturn, Clive Palmer said today.

In a letter to Citic Limited shareholders, the company’s Chairman Zhu Hexin said:

Against a market that saw the price of steel decline and prices for raw materials, particularly iron ore, rise, CITIC Pacific Special Steel delivered a 23% greater profit year-on-year to achieve a total profit of RMB5.4 billion. Its strong performance was driven by increased production and improved margins resulting from continued efficiency enhancements and greater cost control throughout its operating cycle.”

Mineralogy Chairman, Clive Palmer said the high profits were are direct result of the high quality Mineralogy deposits in WA.

“Citic Limited continues to announce huge profit increases year on year on the back of its steel division. Serious questions need to be asked as to why the company is still given discounts by the WA Government,’’ Mr Palmer said.

“The Chinese government-owned company hides behind curtains. They say the project in Australia is in jeopardy yet they receive a 50% discount on royalty payments to the WA government.

“How is it that the largest dedicated manufacturer of special steel in China, with record profits and revenue, and total assets over $USD 10 billion is given discounts by the WA Government?

“This discount given to Citic by the WA Government which results in exorbitant profits to Citic could have paid for a new school or new hospital every year for the next 30 to 50 years.

“The McGowan government needs to wake up and start to support its own community,’’ Mr Palmer said.

“Serious questions must be asked as to why Mark McGowan and his government have such a close relationship with China,” he said.