The WA government will change legislation to thwart a $30 billion compensation claim by Clive Palmer and his companies.Credit:Alex Ellinghausen/Trevor Collens
Mr Quigley said Mr Palmer was seeking compensation that equalled $12,000 for every West Australian.
He said the state had been unsuccessful in the past in relation to the claims and therefore a successful outcome in arbitration was not guaranteed.
The nature of the arbitration also meant there would be limited avenues for appeal for the government and even if Mr Palmer was partially successful,it could put the state's financial capacity to deal with the coronavirus pandemic in jeopardy.
"The government is taking steps to protect the state from the rapacious nature of Mr Palmer[and his companies],"Mr Quigley said.
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"Mr Palmer wants Western Australia to pay him $30 billion at a time when the state is in a state of emergency dealing with a global pandemic,a pandemic which Mr Palmer has stated is a media beat-up.
"Obviously,if the claimants were to succeed in their damages claim at anywhere near the level close to the amount sought,this would have dire financial consequences for the state of Western Australia and/or West Australians."
Mr Quigley said the legislation did not remove Mr Palmer's rights under the state agreement and left it open for his companies to submit proposals to develop the Balmoral South project.
But he admitted the new laws were unprecedented.
"It contains a number of provisions and measures that are not usual but Mineralogy and Mr Palmer are not normal and the state needs these measures to best protect its interests and the community's interests,"Mr Quigley said.
"This bill does not give rise to sovereign risk. Other state agreement parties and proponents deal properly and appropriately with the state in the terms of their proposals."
The move against Mr Palmer comes amid his controversial High Court challenge that could see WA's hard border policy deemed unconstitutional.
The challenge has seen an escalation of tensions between Mr Palmer and Premier Mark McGowan,who last week said the state was'at war'with the billionaire. The Premier has argued Mr Palmer's challenge could threaten lives if it meant a COVID-19 outbreak in the state.
"It is not normal for a state to declare war on someone and say I'm an enemy of the people when all we've done is really question the government's power before the court,"he said.
Mr Palmer's companies have been at the centre of a number of legal stoushes in recent years.
Mineralogy won a protracted court battle over royalty payments from Chinese-owned CITIC Pacific in 2017,which sees it reap $100 million per quarter.
The mine sits on land owned by Mr Palmer’s company,which signed a mining agreement with the state government in 2002.