Chinese company denies signing $60-billion coal deal with Australia's Resourcehouse
09 February 2010
China Power International Development (CPI), one of China's five large power generating groups denied today having signed a 20-year $60-billion coal import contract last week with Australian commodity powerhouse Resourcehouse.
The Beijing-based company not only denied the deal, but cautioned shareholders and potential investors of its company to exercise caution when dealing in the shares of the company.
Last week, Resourcehouse said that it has signed a 20-year $60-billion export contract with CPI to supply 30 million tonnes of coal annually from its proposed mine in central Queensland. (See: Australia's Resourcehouse in $60-billion export deal with China's CPI)
The Hong Kong listed CPI said in a clarification statement to the Hong Kong Stock Exchange yesterday, ''The company has reviewed the Articles thoroughly and confirms that it did not contact nor negotiate with Resourcehouse Ltd about any agreement and the company did not sign any documents, whether legally binding or not, with Resourcehouse Ltd.''
Brisbane-based Resourcehouse, run by Australian billionaire Clive Palmer said today that that his company inadvertently named the wrong Chinese firm, and Resourcehouse has not signed the deal with China Power International Development, but with China Power International Holding Ltd.
China Power International Holding, a subsidiary of China Power Investment Corp (CPI) owns and operates power generation, transmission, and supply plants across China. But CPI Holding denied that it has signed the $60-billion contract with Resourcehouse but it has just a "framework agreement" in place and the deal requires more negotiations before concluding it. It added that pricing or terms of the deal has yet not been finalised.
Clive Palmer, Australia's fifth-richest man had said last week that the deal with CPI is Australia's biggest ever export contract and a spokesperson for Resourcehouse said that it has a binding sales agreement with CPI Holdings.
Resourcehouse had announced the deal ahead of its planned listing in the Hong Kong Stock Exchange, which was delayed last year after regulators had asked for more information and needed time to strike a deal to sell up to 5 per cent of its equity to Metallurgical Corp of China for around $200 million.