Tinkler bid to shift battle with old mate - The Australian

Nathan Tinkler has been accused in a Supreme Court hearing in Brisbane of diverting coal royalties from a Middlemount mining company, Oceltip, in which Mr Tinkler is a director and is linked to a 75 per cent interest. Picture: Liam Driver Source: The Daily Telegraph

MINING entrepreneur Nathan Tinkler is expected to testify in the Supreme Court action that has pitted him against one-time friend and co-investor Matthew Higgins.

The pair has entered into a legal dispute over royalties from the central Queensland coal mine that kick-started Mr Tinkler's rise to success.

Mr Tinkler's legal team yesterday applied in the Queensland Supreme Court to have the case moved to NSW, ahead of a directions hearing at the end of this month.

Barrister Kylie Downes, SC, said the only connection to Queensland was the royalty.

"Sydney is more appropriate because all the facts that give rise to the allegations related to conduct in NSW," she said.

"In this case the witnesses are in NSW, the documents are in NSW.

"The conduct [Mr Higgins] is concerned about - the conduct of these [bank] accounts, the opening of these accounts - occurred in NSW."

Mr Higgins' MG Investments is seeking access to the financial records of the company, Oceltip. The wives of Mr Higgins and Mr Tinkler are listed as the company owners.

Ms Downes told the court it was anticipated the witnesses for a possible future trial included Mr Tinkler, who remains based in Singapore.

Newcastle-based Mr Higgins is also expected to be a witness, as well as three former company directors.

Bank records from the company are expected to feature in the case.

Barrister for Mr Higgins, Ian Erskine, said the business was based in Brisbane and opposed the application to move the case. The matter was adjourned.

Mr Tinkler and Mr Higgins were both Newcastle electricians when they accumulated $1 million to invest in the $30m central Queensland mining lease Middlemount.

Less than a year later they sold the site to Macarthur Coal for a total of more than $250m in cash and shares, plus a royalty per tonne for the coal extracted that could total tens of millions of dollars.