Australia's Resourcehouse in $60-billion export deal with China's CPI

Australian commodity powerhouse Resourcehouse has signed a 20-year US$60-billion export contract with China. Under the deal, the Australian miner will supply China Power International Development (CPI) annually with 30 million tonnes of coal from its proposed mine in central Queensland.

Resourcehouse, led by billionnaire Clive Palmer, will also sell up to 5 per cent of its equity to Metallurgical Corp of China for around US$200 million ahead of a planned listing in the Hong Kong Stock Exchange.

"This deal with CPI is Australia's biggest ever export contract," Palmer, Australia's fifth-richest man, said in a statement.
 
Palmer also awarded an $8 million engineering and construction management contract for the biggest thermal coal project in Queenland, called `China First', to Metallurgical Corp of China (MCC).

"MCC will manage a syndicated group consisting of Sino Coal International Engineering Group, China Communications Construction Company (First Harbour) and China Railway Group Limited (CREC) to build Australia's largest coal mine along with the required export infrastructure," Palmer said.

MCC would also take 10 per cent equity in the $7.5 billion project, which include an exclusive rail link to the port.

Palmer, who kicked off marketing of Resource house's multibillion-dollar float, said the Chinese partner has lined up the debt funding - up to 70 per cent (with support from Chinese banks) - for the massive project.