Palmer corrects coal deal statement

Palmer's statement comes in the light of revelations made by China's Xinhua news agency that price negotiations between CPI and Palmer's Resourcehouse are yet to get underway.

"The CPID official, who did not want to be named, said the sum of $US60 billion was an estimation by Resourcehouse, which was revealed by the Australian company probably for its own benefits," Xinhua reported in their news.

Apart from the estimation, Palmer also corrected another error in the announcement, stating that the agreement was not entered with China Power International Development but with China Power International Holding Ltd.

Palmer added that he had today lunched with officials from China Power International Holding and have confirmed their commitment to work together in this project.

Palmer announced the deal at weekend, claiming it to be the biggest export deal for Australia, and also revealed plans to build a coal terminal in Queensland to support the export activities, which is believed to amount at 30 million tonnes of coal annually for 20 consecutive years.

A spokesperson for Resourcehouse had earlier denied that the two parties have signed only an agreement of intent, as reported by Xinhua, claiming that it was a binding contract.