Eighteen months later CITIC agreed to pay another $US200 million (then $217 million) for access to another billion tonnes of iron ore. In April, CITIC said it would take up another $200 million option for rights over a further billion tonnes. The final amount would be far less, with exploration expenses to be deducted. The Chinese company would also pay royalties to Mr Palmer, under a two-stage royalty scheme. The first stage was a US30¢/t on ore "taken" from the project, and the second a complex production royalty calculated on magnetite shipped from the project. It is the first stage that has come unstuck, over an argument about the meaning of the word "taken". For Mr Palmer it means "mined", and he is understood to be claiming royalties on all ore movements since 2008. CITIC says it is all material fed into the crusher, starting with commercial production. Then, of course, there is the penalty payment due from CITIC in March next year.