China tapped for $11 billion resources investment

At a meeting in Canberra the deal was signed which included 10 new agreements, many of which were resources and energy related contracts.
Chinese companies will provide US$8 billon ($9.1 billion) to build a coal mine, 476 km rail line and a coal terminal at the port of Abbot Point.
“The project is expected to result in approximately $4 billion in exports every year for 25 years,” Rudd said.
China Development Bank will also inject US$1.2 billion into the construction of the new deepwater port at Oakajee, north of Geraldton in Western Australia, and connecting rail infrastructure.
The bank will also assist in the development of Aquila Resources’ coal and iron ore mining projects in the Pilbara.
Meanwhile, engineers and other experts from China will also help fast track the expansion of Fortescue Metals Group’s ore project in the Pilbara to a production capacity of 95 million tonnes a year, expected to generate billions of export dollars each year.
The inter-governmental agreement between the Department of Resources, Energy and Tourism and the National Energy Administration of China on enhancing cooperation in the field of energy is to address the twin challenges of climate change and energy security.

Prime minister Rudd and vice president Xi Jinping witnessed the signing of the following agreements to further expand cooperation between Australia and China in education, trade, infrastructure, communications, energy and resources:

1. Facility Agreement for USD 1.2 billion between Karara Mining Ltd and China Development Bank Corporation (CDB)
This joint venture is a critical component underpinning the development of proposed port and rail infrastructure at Oakajee in Western Australia. This infrastructure, together with Karara's project at its mine site, is expected to generate several thousand new jobs in the region.

2. Memorandum of Understanding (MoU) on Cooperation on Project Development between the Government of South Australia and CDB
To build capacity for the development of major long-term energy infrastructure in South Australia by promoting greater cooperation in the areas of resources, infrastructure, clean energy, minerals processing and agriculture.

3. MoU on Cooperation on Project Development between Aquila Resources Ltd and CDB
The MoU will support the development and expansion of Aquila's coal and iron ore mining projects in the Pilbara in Western Australia.

4. MoU between the Party School of the Central Committee of the Communist Party of China and The Australian National University
The MoU covers agreement on training, joint research and exchanges of personnel, with a focus on promoting better understanding of governance in both countries and establishing durable academic linkages.

5. Arckaringa Unincorporated Evaluation Joint Venture Agreement between China National Offshore Oil Corporation and Arckaringa Energy Pty Ltd
This Agreement will further opportunities for Chinese investment and market development in South Australia by promoting cooperation in resources, infrastructure, clean energy, minerals processing and agriculture. Projects may include conversion of coal in the Arckaringa Basin into high value clean energy products such as liquid fuels, chemical feed-stocks and power.

6. Strategic Partnership Agreement between Telstra and ZTE
To extend this strategic partnership, Telstra will become a preferred telecommunications supplier to ZTE worldwide and ZTE will continue to supply Telstra's telecommunications equipment to support the construction of the LTE network in Hong Kong and also with ZTE handsets in Australia.

7. Engineering and Procurement Contract Cooperation Agreement for China Gezhouba Group Company Ltd to provide procurement, engineering and design services to Fortescue Metals Group Ltd
To fast-track the expansion of Fortescue's iron ore project in the Pilbara to a production capability of 95 million tonnes of output a year. At current estimates, the expansion will add more than AUD 5 billion of annual export revenue to Australia.

8. Cooperation Agreement of China First Coal Development between Resourcehouse Ltd, Export-Import Bank of China, Metallurgical Corporation of China and China Power Holdings
To establish a USD 8 billion China First Coal Project involving the construction of a mine, a 476km railway to the port of Abbott Point near Bowen and the construction of a coal loading terminal. The project is expected to result in approximately AUD 4 billion in exports every year for 25 years.

9. MoU between the Department of Resources, Energy and Tourism of Australia and the National Energy Administration of the People's Republic of China on enhancing cooperation in the field of energy
To enhance and extend long-standing cooperation between the Australian and Chinese Governments on energy, notably in oil and gas, coal and coal seam gas, low emissions technologies, renewable energy and uranium. This will better position both nations to address the twin challenges of climate change and energy security.

10. Protocol of Phytosanitary Requirements for the Export of Apples from the State of Tasmania, Australia to China
The protocol provides Tasmanian growers and exporters with improved quarantine conditions to commence trade in apples to China; this follows the Australian Government's long-standing request for removal of certain requirements to improve access.

Source: Australian Bulk Handling Review – www.bulkhandling.com.au