"According to a Reuters report, the CITIC Pacific Cape Preston iron ore project is becoming known as the debacle in the outback.
To be fair, there has been talk within the industry for the past four years that the mega magnetite project, which has been blighted by time and cost blowouts, had long been heading that way.
The newswire quotes former BHP Billiton China president Clinton Dines as saying: “It has the potential to be a company killer, that’s for sure.”
Senior Chinese leaders have privately said they are worried the mine could turn into an embarrassing failure, according to Australian government officials and foreign mining executives.
Soaring costs and missed deadlines in the Pilbara mine have delivered a major setback to China's global drive to secure reliable supplies of key raw materials."
GBG Price at posting:
34.0¢ Sentiment: Buy Disclosure: Held
