Headed by mining stalwart Clive Palmer the diversified miner has agreed to pay nearly $A2.5 million for the shares, which represent 2.8% of Waratah’s issued shares.

With this new acquisition Mineralogy now owns 11.5% of the Toronto-listed company’s issued shares.

Online trading news report Stockhouse said Mineralogy acquired the shares for investment purposes and may be looking at obtaining more.

Mineralogy has interests in iron ore projects in Western Australia’s Pilbara region as well as South Australia and is looking to build a nickel cobalt refinery at the deepwater port at Gladstone.

Waratah is proposing to develop a new 25 million tonne per annum coal mine as well as a 500km rail and a new port, worth $A5.3 billion, in Queensland’s Galilee Basin.

Earlier this month federal Environment Minister Peter Garrett decided to block Waratah’s rail and port plans on environmental grounds.

Waratah shares finished lower on the TSX yesterday at $C1.19, down by 13c.