Clive Palmer threatens High Court challenge if WA blocks Balmoral iron ore project damages claim

West Australian Government legislation to terminate a legal challenge against it by mining magnate Clive Palmer, said to be worth $30 billion, is set to pass through Parliament with the support of the Opposition.

Key points:

• Clive Palmer says legislation to block his claim would abolish "natural justice"
• Premier Mark McGowan says a $30 billion payout would "cripple" the state
• The Opposition is yet to decide whether to support the urgent legislation

The Queensland mining billionaire claims unreasonable decisions made by the WA Government regarding his iron ore interests in the Pilbara has caused him enormous financial loss.

The Government's legislation aims to terminate Mr Palmer's arbitration claim and will be debated in the Lower House, where it is expected to pass later today.  

Mr Palmer says he will take the WA Government to the High Court if the extraordinary legislation is passed.

Mr Palmer also warned business investment in WA would dry up if State Parliament passed the law, while casting doubt over the size of his claim against the Government over the Balmoral South iron ore project.

"There isn't any $30 billion claim against the Western Australian Government," Mr Palmer said at a media conference in Brisbane.

"It's [their] assessment of what the damages are for what they've done."

Mr Palmer said the damages he had incurred in relation to the project were still being assessed.

He said the proposed legislation would exempt the Government from any liability.

"It also abolishes natural justice. We have a right to a hearing," he said.

WA Attorney-General John Quigley told State Parliament yesterday Mr Palmer and his company Mineralogy were taking action against the WA Government for nearly $30 billion for damages associated with the iron ore project in the Pilbara region.

In response, the Government has introduced urgent legislation into Parliament in an attempt to prevent the damages claim, which amounts to the state's entire annual budget.

The WA Liberal Party said it would not oppose the legislation, paving the way for the bill's passage.

However, Opposition leader Liza Harvey said the party had "concerns in respect to accountability and transparency" which would be outlined in Parliament later today.

Emergency bill 'unconstitutional': Palmer

Mr Palmer's mining proposal was rejected in August 2012 by the then-government, specifically by former state development minister and premier Colin Barnett.

Mr Palmer and his companies allege they suffered enormous financial loss, including damages, interest and costs, because they were unable to sell the project to a Chinese company as a result of decisions made by the state over the past decade.

The McGowan Government's bill seeks to prevent WA from paying the damages which it says would cost every man, woman and child in the state $12,000.

The proposed bill includes the suggested provision: "Any conduct of the state that is connected to the disputed matter cannot in any proceedings be appealed against, challenged or called into question on any basis."

Another provision states: "The rules known as the rules of natural justice, including any duty to procedural fairness, do not apply, or in relation to any conduct of the state that is connected with the disputed matter."

Mr Palmer said the Government's emergency legislation created sovereign risk and destroyed WA's reputation as a secure place to invest.

"This emergency legislation is unconstitutional," he said in a statement.

"Ultimately this matter will end up in the High Court of Australia".

The proposed legislation would also stop a member of the public or media from accessing information on the dispute through Freedom of Information.

"The Freedom of Information Act 1992 Parts 2 and 4 do not apply to a document connected with a disputed matter," the bill states.

$30b payout would cripple WA, Premier says

Premier Mark McGowan said while WA's legal position over Mr Palmer's claim was very strong, he had no choice but to introduce emergency legislation to protect against an "extreme risk".

"The potential financial consequences could be dire, absolutely dire for Western Australia," he said.

"A payment to the tune of $30 billion would cripple, cripple the state of Western Australia … we had no choice but to take this course of action to protect every West Australian.

"I will not risk selling Western Australia down the drain to Clive Palmer."

He accepted the proposed bill was unprecedented, but he said it was not a normal situation.

Pressed on the $30 billion figure provided by the Government, Mr McGowan told reporters Mr Palmer's application in arbitration amounted to more than $28.4 billion, plus potential costs and a claim for unspecified damages for other matters.

"In total it would probably be way in excess of $30 billion that Mr Palmer is seeking," he said. 

"Mr Palmer's actions here are unprecedented. What he is trying to do here is bankrupt Western Australia. He is trying to take our money.

"And if he's successful, that would mean mass closures of hospitals, of schools, of police stations. Mass sackings of public servants, of child protection workers, of police officers."

Mr McGowan underlined the proposed bill was specific to this issue and "does not give rise to sovereign risk, nor does not create a risk to other state agreements".

He said he had discussed the issue with other mining leaders and said they "all understand and support the approach we are taking".

Row between Palmer and WA deepens

Mr Palmer has already taken High Court action against the WA Government over its hard border closure, arguing that is also unconstitutional.

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In a tweet on Wednesday morning, Mr Palmer questioned the timing of the Government's legislation given his recent High Court challenge.

"The actions of the WA State Government to pass legislation against me is an act of intimidation because I exercised my right to challenge a decision that is unconstitutional," he said.

"The legislation they have passed to try and stop me and my company has been done a week after the Premier declared war on me and declared me an enemy of the State."

The WA Liberal partyroom met at 11.30am this morning to decide whether to support the legislation.

In a statement, Opposition Leader Liza Harvey said members had not had time to digest the "complex matter", given the issue was raised late last night.

Parliament's sitting had been pushed back until late this afternoon to give the Opposition time to consider the bill.