A defiant Bob Brown Foundation will fire back at a mining company demanding $100,000 by sending its own letter of demand.
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"This is an exercise in public intimidation of a community group by a corporate bully," the environmentalist group's chief executive, Steven Chaffer, said.
"We have no intention of paying a single cent to Venture Minerals for the destruction they have done, and plan to do, to takayna/Tarkine.
"Our foundation will respond in kind and send a letter to VML demanding it restore to the people of Tasmania the natural forest and wildlife habitat so far destroyed by its destructive activities in the publicly-owned takayna/Tarkine."
Venture started production at its Riley iron ore mine near Tullah earlier this year, but falling prices meant it was then suspended after one shipment
The company also aims to develop a tin and tungsten mine at Mount Lindsay, despite opposition to both projects from the foundation.
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Venture on Friday said it had issued the foundation a letter of demand for slightly more than $100,000 and threatened legal action - potentially against individual activists and protesters - if the foundation did not pay.
The amount related to extra costs the company believed it had incurred through activists' actions on the West Coast and in Burnie, from where the shipment was exported.
The letter, from law and corporate advisory firm Davis Advisory, said Venture respected the right of the foundation and its agents and members to conduct peaceful and legal protest.
"However, it is also a fundamental right in our democracy that in conducting your protests you show the same respect that VML extends to you," it said.
It said that included Venture's legal rights to mine, transport and export iron ore from Riley, not causing the company financial loss and not trespassing on areas where the foundation was not authorised or invited to access.
Foundation campaign manager Jenny Weber said Venture had invaded Tasmanian nature strongholds.
"We didn't," she said.
"They are the villains in this age of global climate emergency and extinction crisis."
Dr Brown - a former Australian Greens leader - said: "If this is an exercise meant to turn us to jelly, they are picking on the wrong people."