Chinese to bankroll $9bn Clive Palmer's Resourcehouse project From: The Australian March 22, 2010 12:00AM
CLIVE Palmer's Resourcehouse says its $US8 billion ($8.7bn) thermal coal mine project in central Queensland will proceed after the company sealed Chinese financing.
The billionaire said a $6bn loan with Export-Import Bank of China was expected to be completed this week and new investors had agreed to provide the balance.
Resourcehouse wants to sell coal and iron ore to supply steel mills and power companies in China, challenging producers such as BHP and Rio Tinto.
The company is still studying an initial share sale in Hong Kong, worth up to $US3bn, though no decision has been made. "We are in the final stages of issuing our term sheet for our loan," Mr Palmer said.
"I would expect that to be issued within the next week. It means the project is going ahead."
Resourcehouse said China Power International Holding, a unit of China Power Investment, had agreed to buy 30 million tonnes of coal a year from the project in Queensland.
Mr Palmer has awarded a $US8bn engineering and construction management contract to Metallurgical Corporation of China, which signed an accord to buy $US200 million of shares in Resourcehouse.
Bloomberg
ARH Price at posting:
44.0¢ Sentiment: None Disclosure: Held
