Clive Palmer, chairman of Australian firm Resourcehouse, has admitted that the figure of $US60 billion it trumpeted at the weekend in a supply contract with a Chinese company was only a estimate.
Doubts were cast over the deal firstly after China Power International Development Ltd informed the Hong Kong Stock Exchange that it had signed no such deal – only an agreement of intent and that there had been no discussion over prices. Then Mr Palmer was forced to admit on Tuesday that the company named in weekend press releases was incorrect and that an agreement had actually been signed with China Power International Holding Ltd, its unlisted parent company. However, he added: ''Resourcehouse has estimated the cumulative value of any coal sales made under the agreement to be in the order of $US60 billion considering market prices across the life of the agreement.''
Meanwhile Queensland Premier Anna Bligh leapt to Mr Palmer's defence, saying that Chinese claims that there was only an agreement of intent were wrong.
''I have sighted myself the signed agreements which I am advised are legally binding agreements and go to the question of a quantity of supply,'' she said.
''The question of the contract price for that supply is something that would be negotiated probably on a triennial basis throughout the 20-year life of the supply contract.''
A spokesman for Resourcehouse said yesterday said that the agreement with CPI Holdings ''specifically is for a 20-year term of supply of coal at a price linked to the seaborne market for the sale of 30 million tonnes per annum''. However there is some scepticism amongst analysts that thermal coal prices will maintain those prices in the 20 years from 2014, the earliest Resourcehouse’s China First mine which will supply coal for the deal will be in production.
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Showing posts with label resourcehouse. Show all posts
Showing posts with label resourcehouse. Show all posts
Tuesday, February 9, 2010
Resourcehouse 'Named Wrong Company' In Coal Deal Annoucement
Australia's Resourcehouse said on Tuesday that it made an error when referring to the name of the Chinese company with which it has sealed a major coal supply contract. Resourcehouse now says that it is actually working with China Power International Holding Ltd and not China Power International Development.
China Power International said in a filing to the Hong Kong Stock Exchange that it was wrongly identified at the weekend as having secured an agreement to purchase 30 million tons of coal annually from Resourcehouse Ltd.
China Power International said in a filing to the Hong Kong Stock Exchange that it was wrongly identified at the weekend as having secured an agreement to purchase 30 million tons of coal annually from Resourcehouse Ltd.
Monday, February 8, 2010
China Power Claims Resourcehouse 'Deal' Was 'Agreement Of Intent'
China Power International Development Ltd. (CPI), a unit of major power producer China Power Investment Corp., has denied weekend media reports that it has signed a 60-billion US dollar coal-supply deal with Australia's mining firm Resourcehouse.
The company is claiming that the two companies have actually signed a letter of intent and that price negotiations have yet to begin, an official from China Power International Development told the Chinese news agency, Xinhua.
Resourcehouse claimed on Saturday that the two companies had signed a deal for it to supply CPI with 30 million tonnes of coal a year for 20 years from 2014. Coal for the deal would come from a mine project in Queensland which was to be built by Metallurgical Corporation of China Limited, one of the world's biggest engineering contractors. The mine – named China First – would cost $7 billion and would be operational by 2013 with the CPI agreement kicking in the following year.
The un-named CPI official alleged that the sum of $60 billion was an estimate by Resourcehouse and that the figure which was revealed by the Australian company was probably for its own benefit.
Australia is the biggest exporter of coal to China exporting 43.9 million tonnes in 2009.
The company is claiming that the two companies have actually signed a letter of intent and that price negotiations have yet to begin, an official from China Power International Development told the Chinese news agency, Xinhua.
Resourcehouse claimed on Saturday that the two companies had signed a deal for it to supply CPI with 30 million tonnes of coal a year for 20 years from 2014. Coal for the deal would come from a mine project in Queensland which was to be built by Metallurgical Corporation of China Limited, one of the world's biggest engineering contractors. The mine – named China First – would cost $7 billion and would be operational by 2013 with the CPI agreement kicking in the following year.
The un-named CPI official alleged that the sum of $60 billion was an estimate by Resourcehouse and that the figure which was revealed by the Australian company was probably for its own benefit.
Australia is the biggest exporter of coal to China exporting 43.9 million tonnes in 2009.
Saturday, February 6, 2010
Resourcehouse Claims $60bn Coal Supply Deal With China
Privately-owned Australian company Resourcehouse Ltd. said on Saturday that it has struck a $60 billion, 20-year agreement to supply coal to China Power International Development Ltd.
Resourcehouse says it will supply 30 million metric tons of coal a year at a price of about $3 billion a year, for 20 years starting from 2014.
"This is Australia's largest single, non-syndicated, finance deal, and the interest from China highlights the strength of the project and the benefits for Queensland and Australia in developing a new world class coal region such as the Galilee Basin," said Australian businessman Clive Palmer, who controls Resourcehouse.
Hong Kong-listed China Power is the flagship company of China Power Investment Corp., one of China's top five power companies.
Resourcehouse says it will supply 30 million metric tons of coal a year at a price of about $3 billion a year, for 20 years starting from 2014.
"This is Australia's largest single, non-syndicated, finance deal, and the interest from China highlights the strength of the project and the benefits for Queensland and Australia in developing a new world class coal region such as the Galilee Basin," said Australian businessman Clive Palmer, who controls Resourcehouse.
Hong Kong-listed China Power is the flagship company of China Power Investment Corp., one of China's top five power companies.
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