Clive Palmer's Resourcehouse, China Power deal, clarified

10 February 2010 - On February 6, 2010, Clive Palmer reportedly entered into a 20-year coal supply agreement, heralded as Australia's largest export order, with China Power. The order was said to be worth $60BB over its lifetime. China Power (CPIH) has since issued a statement that indeed, no such agreement had been reached. According to a CPIH spokesperson, interested parties had engaged only in a "framework agreement," and not a final contract, as was previously reported. State media in China report that the two companies have an "agreement of intent," but that price negotiations have yet to start.

Since the clarification by CPIH was issued, Resourcehouse changed the language of the announcement to indicate that the $60BB figure was merely an estimate. Austrailian State Premier Anna Bligh stated that the signed contract documents she had seen specified quantities, but no prices, and she speculated that pricing would probably be reset every 3 years over the course of the 20-year contract.

Click here to read about the original Resourcehouse, China Power announcement.

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