Resourcehouse's China deal plunges into confusion

Clive Palmer, the billionaire chairman of Australian coal and iron-ore project developer Resourcehouse, admitted he named the wrong Chinese company when announcing a US$60 billion, 20-year supply agreement over the weekend. Resourcehouse’s partner is China Power International Holding (CPIH), not the state-owned firm’s listed subsidiary China Power International Development (CPID), as originally stated by Palmer, the Wall Street Journal reported. The resultant confusion – CPID said on Monday that it not held talks with Resourcehouse – could damage the Australian company’s credibility ahead of its planned Hong Kong initial public offering. Conflicting stories over the structure of the deal could be equally damaging. While Resourcehouse says it has a binding contract – for the sale of 30 million tons of coal per year – CPIH on Tuesday described it as nothing more than a framework agreement that doesn’t include pricing or terms.