On 18 September 2009 the CFMEU applied to Fair Work Australia (FWA) for orders that CITIC Pacific Mining Management Pty Ltd (CPMM) cease refusing permit holders from the CFMEU entry to the Sino Iron project at Cape Preston in the Pilbara region of West Australia.
Cape Preston is some 100 kilometres south-west of Karratha, where CPMM is building the largest-planned magnetite project in Australia at a cost of $5 billion. The project involves the construction of a 450-megawatt power station, a mine pit, a desalination plant, port and pellet plant. It is expected that when construction is finished, CITIC Pacific will be the first Chinese-owned company in Australia to export iron ore to China.
The union claimed that when officials attended the site to investigate alleged safety breaches, the company's representative refused entry on the grounds that the union’s details were not specific enough. The company continued to refuse entry after officials provided the company in writing with a list of eight points of safety issues, which they said needed to be addressed. CITIC Pacific refused entry on the grounds that the allegations of safety were not specific enough. The issues raised by the unions included use of lead paint, inadequate dust suppression, temporary power supplies not to Australian standards, unlicensed operators on plant and equipment, inadequate storage of fuel and chemicals, protected equipment not appropriate, inadequate pedestrians pathways and personnel doing tasks without adequate training.
At a hearing on 24 September 2009, Commissioner Williams heard the parties’ explanation of their respective positions and conducted further proceedings in conference. At the conclusion of the conference, Commissioner Williams recommended that the parties hold further discussions to identify the degree of particularity required by CPMM concerning the safety issues raised by the union. The Commissioner suggested that if, after such discussions, entry was denied, the parties could return to Fair Work Australia for further hearings.