Media reports out of China have indicated that Clive Palmer’s US$60 billion coal export deal with China Power International Development (CPI) is nowhere near as complete as the mining magnate has suggested.
According to the China’s state-controlled Xinhua news agency, CPI and Palmer’s Resourcehouse have in fact only signed an agreement of intent and are yet to begin specific price negotiations.
Citing an unnamed official at CPI, the China Daily newspaper said that the US$60 billion price tag was an estimation from Resourcehouse.
Palmer announced on the weekend that Resourcehouse had signed a 20 year sales agreement that will see CPI buy 30 million tonnes of coal per year at an annual cost of around US$3 billion.
The massive contract also includes an extra US$8 billion to develop Resourcehouse’s China First coal mine in Queensland’s Galilee Basin, which Palmer said will create up to 7,500 direct jobs, as well as tens of thousands of flow on positions.
The Export-Import Bank of China has said it will arrange US$5.6 billion of the capital required for the China First development.
Xinhua reports have suggested that the deal’s announcement may be a ploy from Palmer to help Resourcehouse in its efforts to list on the Hong Kong stock exchange.
Resourcehouse was unavailable for comment when contacted by MINING DAILY.