Australian billionaire orders replica of Titanic

Mining magnate Clive Palmer has ordered a Chinese shipyard to build an exact replica of the Titanic.

The shipyard, CSC Jinling Shipyard, is state-owned.

"Many people have attempted to do it before but have failed because they didn't have the money to pay for it," Palmer told reporters in Brisbane.

"We've got the money, we've got the shipyard and we're moving very heavily to commence construction to bring this ship into service."

Titanic II is set to sail in the northern hemisphere in 2016 from England to North America.

Palmer said the rebuild was a tribute to the spirit of the men and women who worked on the original Titanic.

Asked if the ship could sink, Mr Palmer told reporters: "Of course it will sink if you put a hole in it. It is going to be designed so it won't sink. It will be designed as a modern ship with all the technology to ensure that doesn't happen.

"But of course if you are superstitious like you are, you never know what could happen."

Titanic II will have 840 rooms and nine decks.

During the press conference, Palmer also announced he will be launching a political career in Australia, to stand against the Treasurer of the current government at the next election.

But Opposition leader Tony Abbott says Palmer did not speak to him before announcing his decision to get involved in politics.