Clive Palmer steers country's biggest export agreement
Clive Palmer's Resourcehouse has slammed home Australia's biggest export contract with China, worth $70 billion.
Under the 20-year offtake agreement, 30 million tonnes of coal will be sold each year from the company's proposed China First coal mine and infrastructure project in central Queensland to China Power International Development, one of China's largest power companies and part of the China Power Investment Corporation (CPI).
"This deal with CPI is Australia's biggest ever export contract," Mr Palmer said.
China Power International Development chairwoman Li Xiaolin welcomed the deal, saying its power plants mainly supplied electricity to the eastern, central and northern China grids.
"The project is opening up a massive new coal resource and the CPI Group of companies are pleased to be involved in the project," she said.
Mr Palmer said the new deal would create thousands of jobs in Queensland and most likely restore Queensland's AAA credit rating. The royalties from the sales are expected to tip more some $700 million into the government's coffers per annum from 2014, while creating 7500 direct jobs and 50,000 to 60,000 indirect jobs.
Australia's fifth-richest man also said he had awarded Queensland's largest engineering, procurement and construction management contract (EPCM) worth around $9 billion to Metallurgical Corporation 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 (CREC) to build Australia's largest coal mine along with the required export infrastructure," he said.
MCC agreed last year to take a 10 per cent stake in the project.
The $9.25 billion China First Project is being developed by China First, a subsidiary of Resourcehouse.
Mr Palmer's Resourcehouse wants to develop a 40 million-tonne-a-year thermal coal mine in the Galilee Basin, near Alpha, west of Emerald.
The complex will include four underground mines, two surface mines and associated coal facilities.
A private 495km rail line will be built and new jetties and ports erected at Abbott Point, near Bowen.
The project is expected to start later this year.
Resourcehouse is planning a Hong Kong listing next month. The company twice delayed a Hong Kong IPO last year but the miner is now planning to raise up to $US3bn in an initial public offering.
Photo: Tenements in the Galilee Basin
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