from today's smh - no mention of bsiop..

BSIOP may be looking easier to do than Galile in QLD......

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Mining tycoon Clive Palmer expects full production at CITIC Pacific’s $8 billion iron ore mine in Western Australia within two years, despite recent delays.

Mr Palmer stands to receive hundreds of millions of dollars every year in royalties from the massive Sino Iron project, which is being developed by Hong Kong group CITIC Pacific.

CITIC last week lamented Australia's elongated approvals process, which it blamed for yet another delay and cost increase on the project.

CITIC's latest advice was that the project would achieve "trial production" in November: more than two years later than the original guidance.

Speaking this morning at his resort on Queensland's Sunshine Coast, Mr Palmer said he expected full production rates - which are expected to be 24 million tonnes per year of magnetite concentrate - to be achieved within two years of the trial.

"It would be about 18 months if it were me, but CITIC will probably try and do it faster," he said.

Mr Palmer said criticism of CITIC's performance on the project - which is over budget and over schedule - was unfair, as the dimensions of the project had changed several times, rendering the original guidance irrelevant.

CITIC however has conceded that among many troubles, their Chinese mining contractors have struggled to adapt to Australian conditions.

Mr Palmer said he expected his royalties on the project to be in the region of $500 million per year, but he confirmed he is not receiving any of those royalties until production begins.

Mr Palmer's royalties are tied to both the amount of iron ore mined, and the amount of magnetite concentrate exported from the $us8 billion project, which is located near the town of Karratha.

Mr Palmer also said he had not given up the fight to develop a major coal project in Queensland's Galilee Basin.
That "China First" project was dealt a major blow when the Queensland Government awarded a rival project - operated by Indian giants GVK - priority rights to exclusively develop a 600 kilometre transport solution from the Galilee to the coast for export.

But Mr Palmer said he had written a letter to Queensland deputy Premier Jeff Seeney demanding answers as to why his project had been overlooked for the GVK project, and he vowed to start Supreme Court action unless Mr Seeney offered a fulsome explanation.

Mr Palmer's staff submitted a fresh environmental impact study for the Galilee project last week, and Mr Palmer insisted it remained economically viable despite slumping thermal coal prices.

But Mr Palmer's partners appear less convinced: Swiss commodity traders Vitol recently ended their association with the project, and Mr Palmer conceded he would have to renew his financing arrangements on the project if it is to be revived.

Mr Palmer's comments came at the end of a media tour to showcase elements of his business empire.

Mr Palmer used his private jet to fly journalists from Fairfax Media publications, News Ltd publications, Bloomberg and Reuters to his Nickel refinery in Townsville, the Sino Iron project in the Pilbara and finally to his new hotel on the Sunshine Coast.

In a typically wide ranging interview this morning, Mr Palmer said his plans to build a replica of the Titanic would be completed irrespective of the cost, and he was prepared to put himself on the "centerlink queue" to ensure the replica was built.

He also vowed to respect local views if members of the Sunshine Coast community objected to his ambitious plans to build a mega resort with an international airport near Coolum. If rejected, he said he would relocate his resort plans offshore.

He described China as one of the world's great democracies and said the Australian Navy should not be scared to intercept boats containing asylum seekers in high seas.

Finally he joked that his next goal was to become governor-general of Australia so he could wear a top hat to the Melbourne Cup like former governor-general Sir John Kerr.

"I'm still waiting to see what I can't do," he said.

Fairfax paid for this reporter to travel from Melbourne to Brisbane, from where the marathon 20 hour journey in Mr Palmer's private jet began.

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Read more: http://www.smh.com.au/business/mining-and-resources/palmer-to-hit-iron-ore-jackpot-in-two-years-20120821-24jky.html#ixzz248lij8qY