His plan "B" for funding of the BSIOP is to sue the state gov't...

His plan "B" for funding of the BSIOP is to sue the state gov't of QLD for $8b........Go Clive.

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BILLIONAIRE mining magnate Clive Palmer has launched a $8 billion lawsuit over claims of political interference in a Queensland coal rail decision.

One of Mr Palmer's companies, China First Pty Ltd, issued a statement this morning vowing legal action against QR National Limited and QR Limited (QR National) for an alleged breach of confidentiality and misleading conduct over a proposed rail link between the Galilee Basin coal region and the Central Queensland coast.

The dispute threatens to become a major issue in the Queensland election campaign due to Mr Palmer being a Liberal National Party stalwart and donor and the LNP poised to win the March 24 poll.

The Bligh government has granted significant project status for the formerly State-owned QR National's proposed Central Queensland Integrated Rail Project, which would link several coal mines in the Galilee and Bowen Basins to ports.

"Our China First Project will create 6000 jobs during construction and will generate an estimated $4.6 billion per annum in export revenues once operational," said China First spokeswoman Baljeet Singh.

"Now we have QR National in conjunction with the Queensland Government claiming it can build the rail link and create hundreds of jobs in what looks like a bid to score some political mileage in the government's bid for re-election.

"This is an outrage as we had already been in commercial discussions and exchanges with QR National for cooperation in the joint development of rail and port facilities supporting the Galilee Basin.

"We have advised the Coordinator-General of the improper use for which the subject significant project declaration regarding QR National has been made and reserve our rights against him and the Queensland Government.

"We intend seeking damages of $8 billion and will also seek injunctions against QR National and other relevant parties seeking to restrain them from dealing with QR National in respect of the Galilee Basin and its corridor and associated port facilities."

A QR National spokesman issued an immediate defence to Mr Palmer’s claims.

“QR National strongly rejects these baseless assertions,’’ the spokesman said.

“We do not intend to comment further on these matters.”

Queensland Treasurer Andrew Fraser had already called on LNP leader Campbell Newman to deal with Mr Palmer and "pull him into line".

Legal representatives of Mr Palmer, Australia's largest political donor, yesterday wrote a strong letter to a high-ranking state bureaucrat accusing him and the government of "conspiring" against the interests of Waratah Coal, fully owned by Mr Palmer.

Mr Fraser who, along with Premier Anna Bligh, has previously been sued by Mr Palmer for claiming he had bought the LNP used Twitter this morning to declare "Palmer reverts to type, McCarthyist conspiracy, threats, attempts to intimidate independent public officers."

"Newman must pull him into line," Mr Fraser tweeted, as other Labor MPs also joined the chorus of criticism.

Mr Fraser also wrote a "Dear Prof Palmer" tweet, saying "significant project status given to BHP rail proposal last year, QRN's chief customer and competitor. Hardly a conspiracy."

Queensland's Co-Ordinator General, Keith Davies, last week granted QR National "significant project status" for a proposed railway to link existing mines in the Bowen Basin and proposed new mines in the Galilee Basin.

At present, there are two proposals for rail corridors that would carry coal 500km from the Galilee Basin in North Queensland to the coal port of Abbot Point one from Mr Palmer's group and the other from QR National and Hancock Coal.

Mr Palmer initially supported the QR National proposal when it was announced last week, but Ms Singh yesterday sent a letter to Mr Davies asking why he had made the decision and demanding any correspondence on the matter with Premier Anna Bligh, Treasurer Andrew Fraser, QR National or the ALP.

Unless a full explanation of the decision was provided by Monday, Waratah Coal would be calling for Mr Davies to resign, making a formal complaint against him and the government and commencing legal proceedings against Mr Davies, the letter said.

"It is our concern that our legal and commercial rights have been damaged by your improper actions, which may have been made at the direction of others.

"We are concerned that the Premier and the Queensland government together with yourself, members of the Australian Labor Party and/or directors or employees of QR National have conspired to create the false and misleading impression that all is well in the Galilee Basin and its approval process so that you or others may retain their position," the letter said.

QR National has been privatised, but the government retains a 40 per cent stake, which it intends to sell down.

There are three major coal developers in the Galilee Basin, but the government wants only one railway corridor to carry coal to Abbot Point.

Mr Palmer has consistently claimed his proposed corridor would be the first to go ahead and the proponents of the other projects could then negotiate with him, but the Bligh government has not granted an exclusive mandate to Mr Palmer.

The Co-Ordinator General is a uniquely Queensland position originally designed to fast-track development proposals, and to that end the position carries a range of powers to overrule normal development processes.

The position also sits under the department of Mr Fraser, who yesterday said the "threats from Waratah Coal directed at Queensland's independent Co-ordinator-General are nothing short of reprehensible".

"There is no place in Queensland for private companies to bully independent public servants charged with making decisions on major projects in this state.

"I find it utterly disgraceful that a big corporate player would seek to threaten government officials in the hope that fair decisions are overturned and favourable decisions were made for them.

"This isn't the Gold Coast of the 1980s this is Queensland in 2012