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Resourcehouse believes $60b coal deal binding
(Agencies)
Updated: 2010-02-10 09:43
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PERTH/HONG KONG: IPO candidate Resourcehouse Ltd said it believed it had signed a binding $60 billion coal sales deal with China Power International Holding Ltd, though the Chinese company said it was "just a framework".
Clive Palmer, the founder of Resourcehouse, said the $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.
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"Coal sales and purchase contracts will depend on further negotiations," the company said in a press release translated from Chinese.
"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," Resourcehouse said in an e-mailed statement.
At the weekend a Resourcehouse statement mistakenly said the company had an agreement with China Power International Development Ltd (CPID), which had led to a denial by that company. CPID is in fact the parent company of China Power International Holding Ltd.
Palmer is preparing Resourcehouse for investors seeking a stake in its roughly $3 billion Hong Kong initial public offering.
