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Australia's wealthiest man last weekend took a big step toward creating the biggest coal mine this resource-rich nation has ever seen. The question is whether global investors will go along for the ride. Clive Palmer, a 55-year-old businessman, harness-racing enthusiast and published poet, on Saturday announced a deal in which the Export-Import Bank of China will arrange US$5.6 billion of the US$8 billion in financing he needs to build his planned megamine, dubbed 'China First' in Australia's Queensland state and aimed at satisfying China's growing demand for coal. China Power Investment Corp. agreed to buy 30 million metric tons of coal annually from the project for 20 years, further increasing the odds the mine will be developed. If it goes into operation, the mine could have a significant impact on the US$350 billion annual global coal market, with projected output of 40 million tons a year for power plants. Analysts forecast that China will import 90 million tons or more this year. A green light for the project would also indicate a return of significant risk taking in the world's commodity sector. Mining companies shelved projects when the global recession hit in 2008. While commodity prices have rebounded from the lows of the past 18 months, many mining companies remain wary of reviving high-cost plans. Mr. Palmer still needs to raise at least US$2.4 billion, though. He hopes to raise the money by listing closely held Resourcehouse Ltd., the Brisbane, Australia, company that controls the rights to China First. A public offering of Resourcehouse that was to be made in Hong Kong last year has been delayed and now is expected as early as next month. Metallurgical Corp. of China is expected to build the project, and the state-backed materials, engineering and construction group last month paid Mr. Palmer US$200 million for a 4% stake in Resourcehouse. Meanwhile, the Australian government has signaled its support, putting China First on a fast track for regulatory approvals. Canberra has blocked or delayed some other Chinese mining investments in the past year out of fear China would own too much of Australia's naturalresources industry. But so far those fears have been outweighed by the potential upside of developing China First. The mine project, in central Queensland's Galilee Basin, is expected to bring scores of jobs to rural Australia and likely would remain undeveloped without Chinese capital. The project faces significant logistical hurdles, however. The coal deposit is located 490 kilometers inland, and analysts have said the cost of building a railway network to transport the coal to a port on Queensland's northeastern coast will make profit margins tighter than at other Australian coal mines. I am a professional editor from http://www.himfr.com/, and my work is to promote a free online trade platform. http://www.himfr.com/ contain a great deal of information about led lighting wholesale,stainless steel strap,rc racing car, welcome to visit!
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