Clive Palmer’s ‘Mad’ Mine Costs China on Learning Curve
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Clive Palmer, the mining magnate planning a Titanic replica, once said rivals called him “mad” to consider mining low-grade iron ore in Australia’s outback. Then China agreed to build the project for $2.5 billion.
Seven years later, the world’s biggest magnetite iron ore mine has yet to start shipments. Its estimated cost has jumped to $8 billion, and the first two production lines are mired in repair work. Owner Citic Pacific Ltd., the Hong Kong-traded unit of China’s biggest state-owned investment vehicle, may have to sell more debt to fund some $2 billion in extra costs to complete the project, Standard Chartered Plc said in May.