Following legal action by the Hong Kong government against the ex-chairman of Citic Pacific Ltd. and other directors after billions of dollars in losses, Mineralogy has served a termination notice giving the company 21 days to surrender rights at its Sino iron project to Mineralogy in Western Australia.
The action follows a previous notification in Q3 2012 over the project Mineralogy cited as having capital costs exceeding $8 billion. “Not only has Citic failed to disclose important material facts, they sought to suppress information from shareholders,” Mineralogy said, referring to the Hong Kong stock market.
“The directors may have breached the law,” said Mineralogy representatives in a statement. Therefore, they added, Hong Kong authorities “should immediately commence an investigation into Citic Pacific and its directors.”