resourcehouse

Is ARH involved in Resourcehouse ?

This statement suggests that Resourcehouse has 10 billion tons to mine under the name China First Iron Ore Project.
It also suggests that construction would be ready to start in Mid 2010.

If this is a seperate Construction start up to ARH's , then wheres Clives Gov approvals for Resourcehouse. I dont believe he would get them in that timeframe to boast that start up timeframe.

Can only hope that he is using ARH as his vehicle to kick this off company, with a right to mine 10 billion ton.

Would Clive kick off a totally new Iron Ore project for Resource House and exclude ARH altogether ?

Wish i knew, and thanks , my name is also plastered on the ARH announcement email. DOH



Palmer Projects to See Income From 2013, Report Says (Correct) Share Business ExchangeTwitterFacebook| Email | Print | A A A
By Bei Hu

(Corrects story first published Nov. 10 to fix company name in paragraphs four and five).

Nov. 10 (Bloomberg) -- Major projects of Resourcehouse Ltd., controlled by Australia’s fifth richest man Clive Palmer, won’t produce income until 2013, Macquarie Group Ltd. said

Its thermal coal project in the Galilee Basin of Queensland, and iron ore project in the Pilbara, Western Australia, will cost a combined $7 billion to develop, Macquarie Group, which is an arranger of its up to $3 billion initial public offering, said in a Nov. 6 research report seen by Bloomberg.

“While the commercialization of the projects is still a number of years away, Chinese demand for materials and the willingness to invest in offshore markets will not dissipate,” Macquarie’s report said.

Resourcehouse is one of the international resources companies seeking public listing on Hong Kong’s stock market, tapping China’s demand for energy, metals and other raw materials. United Co. Rusal, the world’s largest aluminum maker, may raise as much as $3 billion in a Hong Kong IPO by December, two people familiar with its plan said last month.

Resourcehouse plans to become Hong Kong’s largest resources company and one of the world’s biggest with a focus on the Chinese market, the Macquarie report said.

It started gauging demand for a $2 billion to $3 billion Hong Kong IPO yesterday. Proceeds will help finance its thermal coal, iron ore, oil and gas projects, according to a share sale document e-mailed to fund managers yesterday.

Macquarie estimated Resourcehouse’s major assets are to be worth $5 billion to $6.4 billion.

‘Strong Relationships’

“Given the strong relationships that Resourcehouse has with the Chinese government and Chinese corporates, it is expected that a large part of its projects will be debt funded out of China while Chinese corporates will also be heavily involved in the design and construction of major coal and iron ore projects,” Macquarie’s report said.

Resourcehouse has the right to mine 1.4 billion tons of soft thermal coal in the Galilee Basin, said the report.

Construction for the China First Coal Project, likely to become one of the world’s largest exporter of seaborne thermal coal, is scheduled to begin mid-next year and begin commercial production in mid-2013.

Metallurgical Corp. of China Ltd. has agreed to help arrange financing for up to 70 percent of the project’s total capital expenditure and buy 75 percent of the coal produced for as many as 20 years, the report said.

Metallurgical Corp.’s involvement in the coal mine’s engineering, procurement and construction could also help reduce its estimated $5.15 billion cost, Macquarie said.

Mining Rights

Resourcehouse also has the mining rights to 10 billion tons of magnetite iron ore in the Pilbara, a project estimated to cost $1.86 billion. Construction for the first stage of the China First Iron Ore Project is scheduled to begin in mid-2010 with commercial production slated to start in mid-2013.

Resourcehouse further has interests in oil and gas exploration permits and pending applications for licenses to do so in the Canning Basin, Western Australia and Gulf of Papua, Papua New Guinea, Macquarie said.

Resourcehouse plans to sell 3.05 billion new shares, or a 31.6 percent stake, in the IPO, said the preliminary sale document. Macquarie and UBS AG are arranging the offering.

-- Editor: Richard Dobson.

To contact the reporter on this story: Bei Hu in Hong Kong at [email protected]

Last Updated: November 16, 2009 02:02 EST