Clive Palmer's company Mineralogy has moved to terminate its partnership with the Chinese operator of its $10 billion iron ore mine in Western Australia.

Mineralogy has given Chinese state-owned Citic Pacific notice that its right to mine iron ore at the Sino Iron Project in Western Australia will be terminated in 21 days.

Mineralogy director Clive Mensink, Mr Palmer's nephew, said the company had served a default notice on Citic Pacific over billions of dollars in losses more than two years ago, but the issues raised had not been addressed.

"Not only has Citic Pacific Limited failed to rectify the defaults in the notice, the directors of Citic Pacific failed to declare the default notice to the market in Hong Kong and may have breached the law," Mr Mensink said.

He said Mineralogy was considering making a complaint to Hong Kong authorities about the alleged failure of Citic Pacific directors to inform the Hong Kong stock exchange of the 2012 default notice.