Clive will begin mining 40tpa by 2013.Rey will mine 2mtpa by...

Clive will begin mining 40tpa by 2013.
Rey will mine 2mtpa by 2013.
About time Rey stepped up a few gears.
A big Partner would be the first step.


METALLURGICAL Corporation of China has delivered on its promise to arrange 70% of the finance for Clive Palmer’s $A7.5 billion China First project, delivering a letter of support from a major Chinese bank over the weekend.

MCC had previously agreed to arrange 70% of the Queensland project’s costs through debt financing to Resourcehouse, owned by Queensland billionaire Palmer.

MCC made good on its agreement on Sunday with president Shen Heting personally delivering a letter of support to Palmer from the bank.

The company has also agreed to take a 10% equity interest in the project.

In addition, MCC has committed to buy a minimum of 30 million tonnes of the 40Mt produced from the mine per annum over a 25-year life.

Shen and other Chinese business leaders were hosted by Resourcehouse over the weekend, which held major strategic planning meetings for the project in Brisbane.

Resourcehouse executive director Peter Lynch said among the delegation were officials from China Power Corporation, which will be a major customer for the Galilee coal, as well as a large contingent of MCC executives.

The China First project will consist of a thermal coal mine near Alpha, west of Emerald in central Queensland, and a 490km standard gauge, heavy haul railway line linking the proposed minesite to a 4Mtpa, two-berth coal export terminal at Abbot Point near Bowen.

Last week the development was granted major project facilitation status by the federal government after already being declared a significant project by the Queensland government. The declarations are expected to fast-track the approvals process.

Resourcehouse owns interests in thermal coal deposits in Queensland, magnetite iron ore deposits in Western Australia and South Australia, and oil and gas interests in WA and Papua New Guinea.

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