PERTH (miningweekly.com) – The Western Australian Chamber of Minerals and Energy (CME) on Tuesday called on Australian politicians to ensure that Australia remained an attractive destination for foreign investment, defending foreign investors as critical role-players in the resources sector.

The CME’s statements followed shortly after mining magnate and politician Clive Palmer launched a scathing attack on the Chinese government, saying his own company was owed some A$500-million by the Chinese government.

“The Chinese government wants to bring workers here to destroy our wage system ... they want to take over our ports and get our resources for free. So far, they've shifted A$200-million worth of iron-ore out of this country without paying for it. I don't mind standing up against the Chinese bastards and stop them from doing it,” Palmer said in a televised interview this week.

Palmer’s Mineralogy has filed an application with the Federal Court to have Sino Iron placed into liquidation for nonpayments of funds. Sino Iron is a subsidiary of Chinese major Citic Pacific, and is developing the multibillion-dollar Sino iron-ore project.

Mineralogy has leased the mine site to Citic Pacific, which acquired the right to mine two-billion tonnes of magnetite ore in the Pilbara from Mineralogy, between 2006 and 2008. During 2012, the company exercised its option to acquire the right for another one-billion tonnes.

However, in 2012, Citic Pacific received notices from Mineralogy alleging that terms in the mining right and site lease agreement had been breached, with Mineralogy maintaining that it was entitled to a royalty payment of 3c/t of all material taken from the mine area, including waste material.

In February, Citic Pacific lost a bid to stop Mineralogy from operating a port in Western Australia, after the Chinese miner filed a lawsuit against a government decision that designated Mineralogy as the operator of the Port of Cape Preston.

At the end of July, Mineralogy director Clive Mensink said that Citic Pacific was still in occupation of the Port of Cape Preston despite Federal Court rulings in favour of Mineralogy.

“Mineralogy is the port operator, but the Chinese have refused to give up possession of the port,” Mensink said at the time.

“The Chinese are abusing our legal system while stealing Australian resources. This has forced Mineralogy to have to seek another court declaration to remove them which has now been set down for trial in March, 2015, in the Federal Court.”

In a bid to calm the situation, the CME pointed out that foreign investment had played a critical role in the development of the Western Australian resources sector over the past century, and would continue to do so.

“Intemperate comments on particular commercial arrangements can be damaging to the reputation of Australia as a secure investment location,” said CME CEO Reg Howard-Smith.

“Foreign investment has been instrumental in the development of the resources sector in Western Australia. Linked to these resource projects are of course future jobs for Western Australians.”

He noted that there was more than A$130-billion worth of resources projects either under consideration or in development in this state, which would likely not proceed without foreign investment.

“Australian companies and projects are competing globally to attract capital. All politicians have a responsibility to ensure Australia remains an attractive and competitive place to do business,” said Howard-Smith.

He added that historically, the level of Chinese investment remained moderately low compared to traditional investors such as the US, but it was increasing along with commodity demand.

Treasurer Joe Hockey has condemned Palmer’s attack on the Chinese, saying it was “hugely damaging”.

"He is the big beneficiary of a Chinese investment partner; someone that has paid to help him to develop his resources. Now, he is in a very obvious legal dispute with his Chinese partners, but I would say to Mr Palmer, please do not bring down the rest of Australia because of your biases…,” Hockey said in a transcript of a doorstop interview with journalists.