PALMER CONFIRMS $40 BILLION COAL DEAL IS CANNED

CLIVE Palmer (pictured) has confirmed his China First and Waratah Coal companies have cancelled a $40 billion contract with Swiss energy provider Vitol to supply coal from the Galilee Basin in Central Queensland.

The Queensland mining magnate would not elaborate on the reasons behind the termination of the deal, but Palmer insists the future of the proposed mine is not in danger.

He says China First has a separate $60 billion supply contract with China Power International Holding.

China First and Waratah Coal have proposed an $8 billion coal mine and infrastructure project in the Galilee Basin, south-west of Mackay. The mine has been granted “significant project’’ status by the Queensland Coordinator-General’s office, with an environmental impact study underway.

“It is the project of the century and is supported by leading Chinese industrial company, Metallurgical Corporation of China and China Exim Bank,” Palmer says in a written statement today.

The project, near Alpha, west of Emerald, will create 6000 jobs during construction and generate an estimated $4.6 billion per annum in export revenues once operational, Palmer says.

Today’s contract cancellation is not the first time Palmer has surprised the market by quashing previously announced big intentions.

Palmer’s plans to float his coal and iron ore vehicle Resourcehouse on the Hong Kong stock exchange have now been put on hold three times.

Earlier this week he also appeared to back away from his announced intention to seek Liberal National Party pre-selection for inner Brisbane’s Federal seat of Lilley, currently occupied by Treasurer Wayne Swan.

Palmer has also announced a plan to construct a replica of the sunken cruise liner Titanic and earlier this year alleged that America’s Central Intelligence Agency was supporting anti-mining groups in Australia.