CHINA IN THE HOUSE
Written on the 8 March 2010
MINING magnate Clive Palmer has assured all stakeholders and a nervous State Government that Australia’s biggest export deal is still on.
Palmer says the deal is worth$US60 billion for its proposed China First coal mine and infrastructure project in Central Queensland.
Palmer has bulked up his cash reserves after Metallurgical Corp of China bought a $US200 million stake in his privately held Resourcehouse coal project.
Metallurgical has also gained approval to undertake engineering, procurement and construction work on China First, Resourcehouse coal project in Queensland. Metallurgical will receive a 4 per cent commission from the sale of 30 million tonnes of coal from the project.
MMC and Resourcehouse have reached an agreement under which the company will not only assist the Australian mining group develop the project, but also provide 70 per cent of the costs involved through debt financing, as has been confirmed by both parties involved.
MMC has also committed to buy a minimum of 30 million metric tonnes out of the target 40 million tonnes production of coal every year, for a minimum of 25 years.
The upcoming mine and power plant is expected to raise as many as 6000 jobs during construction. Palmer anticipates a construction start later this year with mining to begin in 2013.