Instead he has secured an extra $1.2 billion in funding from the China Exim Bank, which has approved a buyer’s credit facility for the project.
“We have struck back quickly with a deal which ensures the project’s viability and puts to rest the unfounded criticism of some media and analysts,” Palmer said.
“China Exim Bank has confirmed to China First Pty Ltd, a wholly owned subsidiary of Resourcehouse Limited, their willingness and interest to finance the project.
“The facility amount has now increased to 85 per cent of the total amount of the construction contract after originally providing for 70 per cent.
“The extra 15 per cent means the funding has increased from $5.6 billion to $6.8 billion.”
The China First Project includes a large scale thermal coal mine in the undeveloped Galilee Basin coal region near Alpha, west of Emerald. The complex will include four underground mines, two surface mines and associated coal handling and processing facilities.
The mine will be linked to a new coal terminal at Abbot Point, near Bowen, by a new 471 kilometre standard gauge, heavy haul railway line. The mine and associated infrastructure will create 6,000 jobs during construction and 1,500 during operation.
Palmer said the support from China Exim Bank and the Chinese government was a “major coup” after the disappointment of the Resourcehouse initial public offering, which he claimed failed to close due to falling markets in Asia and the United States.