Palmer's $60b coal deal shafted?

Confusion surrounds mining magnate Clive Palmer's claim to have signed Australia's biggest export deal after the Chinese company said to be buying US$60 billion (NZ$86.4 billion) worth of coal denied having an agreement with him.

The denial, and Chinese media reports playing down the strength of the contract, cast further doubt over Mr Palmer's delayed plans to float his private company Resourcehouse for up to A$3 billion.

At the weekend, Resourcehouse said it signed a record-breaking contract to supply 30 million tonnes of coal to China Power International (CPI) Development, a listed power company.

But yesterday CPI Development shot down the deal with Mr Palmer, one of Australia's richest men. In a statement to the Hong Kong sharemarket, chairwoman Li Xiaolin denied any negotiations with Resourcehouse and said she could not explain media reports of the 20-year contract.

A spokesman for Mr Palmer reaffirmed Resourcehouse had signed the deal, but its press release named the wrong counterparty.

Resourcehouse had agreed to sell thermal coal to China Power International Holding Limited, an unlisted state-owned company, he said.

"The agreement had not been entered into with China Power International Development Limited but with China Power International Holding Limited," Mr Palmer said from Beijing.

A spokesman for Mr Palmer said there was a binding contract which contained key details including a price formula. ''We stand by, confirm 100 per cent, that we have a binding contract with China Power International Holdings, which is a state-owned company. The mix-up was we said the deal was with the listed vehicle, but both of those companies are chaired by the same person.''

Analysts have also voiced scepticism over the $3 billion float value of the coal and iron ore assets owned by Resourcehouse. After buying the site of the China First mine for $126 million in a takeover of Waratah Coal in 2008, Mr Palmer's plans for the $7.5 billion coal project include a 490-kilometre railway line, power station and expanded port.

- © Fairfax NZ News