Resourcehouse, China Power, pen $60B coal deal

Click here to read an update to this Resourcehouse, China Power story.

8 February 2010 - Resourcehouse, an Austrailian-based international resource company, signed what was called Austrailia's "biggest-ever export contract"--a coal supply agreement with China Power--touted to be worth US$60B over its lifetime.

Clive Palmer, chairman of Resourcehouse and one of Austrailia's richest men, negotiated a 20-year agreement to supply China Power International Development (CPI) with 30 million tons of coal per year from a proposed mine in central Queensland. The deal that is said to be worth $60B over the course of the two decades. Palmer awarded the engineering and construction management contract for the thermal coal mine, named "China First," to Metallurgical Corp of China (MCC) for $8B.

Palmer has been able to secure $5.6B toward the deal in financing from Export-Import Bank of China. Palmer anticipates the remainder to be provided through what he hopes is Resourcehouse's impending IPO in Hong Kong in March, an offering said to be worth up to $3 billion. The proceeds will be used to develop underground and strip mines in the new Galilee Basin coal field in northern Queensland. 

China First hopes to be able to initiate coal shipments in 2014.

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