(Queensland, Australia) -- Queensland mining magnate Clive Palmer is expected to leapfrog both Australia's richest man Frank Lowy and billionaire James Packer after he unveiled a $US60 billion ($69.4 billion) deal to sell coal to the Chinese.
Currently the fifth-wealthiest man, Mr Palmer may well overtake Mr Lowy, a property tycoon who is worth an estimated $4.1 billion, and James Packer, currently worth about $3.5 billion, thanks to signing what he called the largest coal deal in Australian history.
The deal has been coupled with floating of his private mining company that will be responsible for delivering the fossil fuel - Resourcehouse.
Mr Palmer was in Hong Kong yesterday putting the final touches to the $3 billion float of Resourcehouse - just a day after announcing he had pulled off the country's largest coal export deal.
The agreement with China coupled with the looming float - which has been postponed twice - will make Mr Palmer one of the wealthiest individuals in Australia and one of the richest in the world.
Mr Palmer stunned analysts on Saturday when he unveiled the $US60 billion, 20-year agreement to sell coal to China.
Under the deal, which is still subject to a host of legislative and regulatory approvals, Mr Palmer's China First project in the Galilee Basin in central Queensland would supply the state-owned power company with up to 30 million tonnes a year from 2014, The Australian reports.
To make that happen, Mr Palmer has signed a $US8 billion bn deal with the Metallurgical Corporation of China, and its state-owned compatriots, to build the mine, a 490km standard gauge railway to Abbot Point - Australia's most northerly coal terminal, 175km south of Townsville - and a stand-alone coal terminal.
Mr Palmer had previously proposed shipping the coal from a new terminal at Shoalwater Bay, 630km northwest of Brisbane, a concept rejected by the Rudd government on environmental grounds.
He is now likely to partner with other players in the Galilee Basin for the supporting infrastructure.
It is thought the float of Resourcehouse will raise between $2 billion and $3 billion, with Mr Palmer retaining a controlling stake in the company. It will hit the Hong Kong bourse with a market capitalisation of about $9 billion.
Reports from Hong Kong say Citi has joined Macquarie and UBS as advisers on the long-awaited float.
Mr Palmer described the coal deal as of great benefit to the company and the Australian economy.
"We think it's a great achievement. It also shows you can still get things moving despite worries about the world economy," he said.
He previously held 100 per cent of Resourcehouse, but MCC announced last week it was injecting $200 million into the company.
It is understood MCC president Shen Fleting is considering joining the Resourcehouse board, which includes Howard government foreign minister Alexander Downer.
By: James McCullough
Source: http://www.dailytelegraph.com.au/business/clive-palmer-set-to-become-australias-richest-man-after-us60-billion-coal-deal/story-e6frez7r-1225827677321