Chinese Banks to Back Resourcehouse's Waratah Coal Project

Resourcehouse Ltd

Resourcehouse Ltd., privately held by the Australian mining giant Clive Palmer, has recently confirmed that the firm, in association with Metallurgical Corp. of China Ltd, has secured the backing of various Chinese banks for its planned A$7.5 Billion (US$7 Billion) Waratah coal project in Queensland.

MMC and Resourcehouse have reached an agreement under which the company will not only assist the Australian mining group develop the project, but also provide 70% of the costs involved through debt financing, as has been confirmed by both parties involved. Also, MMC has committed that it would buy a minimum of 30 million metric tons out of the target 40 million tons production of coal every year, for a minimum of 25 years.

As has been confirmed by Mr. Palmer, the Waratah "thermal coal mine and infrastructure projects includes a 490 kilometer heavy haul railway line and a 40 million tonnes, two-berth export coal terminal at Abbot Point".

The upcoming mine and power plant is expected to raise as many as 6,000 jobs during the construction period, and 1,500 employment opportunities during operation.

In addition to securing firms with the help of its Chinese partner, Resourcehouse is also planning on raising as many as US$2.5 Billion via an IPO in Hong Kong later this month.