MinRes claims Pilbara Ports fee designed to reimburse Chevron
The WA Supreme Court has ordered Pilbara Ports to hand over further internal and contract documents in its ongoing dispute with Mineral Resources (ASX: MIN) over a Port of Ashburton “Channel Charge”.The port authority admits it levied the Channel Charge as a pass-through of the amount it is required to pay Chevron for access to the Port of Ashburton LNG shipping channel under arrangements linked to Chevron’s Wheatstone project.Pilbara Ports says it invoiced MinRes for the Channel Charge and MinRes refused to pay, prompting the court action.In the discovery ruling, the court ordered Pilbara Ports to produce additional board and executive materials concerning proposals and decisions to levy the Channel Charge, as well as specified agreements linked to the port arrangements and Port of Ashburton financial documents.Pilbara Ports says the Channel Charge is a “port charge”, characterising it as a charge for port services, an access charge or a port due.
The matter is listed for a three-day trial commencing April 28, with the heart of the dispute being whether the charge is a valid port charge, which MinRes denies along with any liability for the invoices.MinRes has challenged the charge on multiple grounds, including that Pilbara Ports did not have the power to impose it, that it is not a port charge, that it was not made in accordance with prudent commercial principles and that it exceeds channel or port-services costs.MinRes also alleges the charge was imposed for an improper purpose, to reimburse Chevron and recover those amounts from MinRes.
