here is a real magnetite project fyi, page-53

Yes it has been done before - just next door at Citc Pacific! - although it looks like they have their foot on $6b from Mineralogy versus $1b which may have made the difference for the Chinese with cost blow outs when deciding to pour billions more into it.............

"Mineralogy Pty Ltd, the owner of the Balmoral magnetite deposit since 1986, investigated various iron ore processing projects based on the Balmoral deposit throughout the 1990?s and early 2000?s before entering into substantial discussions and project due diligence with Chinese steel producers.

These discussions culminated in a milestone agreement struck in March 2006 between Mineralogy and CITIC Pacific Ltd, a major Hong Kong listed company with the PRC government as a major shareholder. In a deal (separate to Australasian Resources) CITIC Pacific acquired the right to mine up to 6 billion tonnes of magnetite iron ore from the George Palmer Deposit (part of the Balmoral deposit). This project, on land adjoining the Australasian Resources Project, is testament to the quality of the deposit as two major Chinese companies have now invested substantial effort and funds to develop these projects"


Regarding Balmoral South I'm pretty sure 1b tonnes would be the tip of the iceberg.....note this from Mineralogy's website written about Balmoral South.

"The extensive Balmoral deposit, which is owned by private company Mineralogy Pty Ltd, is reputedly the world?s largest undeveloped magnetite resource which, according to estimates by Hellman & Schofield Pty Ltd independent geological consultants, has the potential to host 60 ? 100 billion tonnes of magnetic Banded Iron Formation"

If the Chinese want to secure more long term supply away from Rio/BHP/ Vale then they should be moving on this plod of dirt. Who knows? Citic might try to take an option on the lot...Sino Mining, ARH and China First......., particularly given they've poured massive investment into cape preston, desal and power generation.