$60b coal deal

CGV Director Domenic Martino is a Director at Resourcehouse Limited, Resourcehouse Limited is raising $3B USD on the HKSE. No doubt Mr Martino is playing a part in helping them with the IPO. This will be a great learning curve to get CGV listed on the HKSE!

Resourcehouse believes USD 60 billion coal deal binding

Wednesday, 17 Mar 2010

IPO candidate Resourcehouse Limited said that it believed it had signed a binding USD 60 billion coal sales deal with China Power International Holding Limited, though the Chinese company said it was just a framework.

Mr Clive Palmer, the founder of Resourcehouse, said that the USD 60 billion headline contract figure was based on its forecast of coal market prices over the life of the agreement to sell 30 million tonnes of coal a year for the next 20 years.

China Power International Holding Limited said the coal sales and purchase deal did not involve any concrete prices. It added that "Coal sales and purchase contracts will depend on further negotiations."

Resourcehouse said in an e mailed statement that "Palmer has met with officials of China Power International Holding Limited today and confirmed their commitment to work together at a lunch held today at the State Guesthouse in Beijing."

At the weekend a Resourcehouse statement mistakenly said the company had an agreement with China Power International Development Limited, which had led to a denial by that company. CPID is in fact the parent company of China Power International Holding Limited.

Palmer is preparing Resourcehouse for investors seeking a stake in its roughly USD 3 billion Hong Kong initial public offering.

(Sourced from China Daily)