Australia's Richest Man Gambles on China – General
online.wsj.com — MELBOURNE, Australia—Australia's wealthiest man last weekend took a big step toward creating the biggest coal mine this resource-rich nation has ever seen. The question is whether global investors will go along for the ride. Clive Palmer, a 55-year-old businessman, harness-racing enthusiast and published poet, on Saturday announced a deal in which the Export-Import Bank of China will arrange US$5.6 billion of the US$8 billion in financing he needs to build his planned megamine, dubbed "China First" in Australia's Queensland state and aimed at satisfying China's growing demand for coal. China Power Investment Corp. agreed to buy 30 million metric tons of coal annually from the project for 20 years, further increasing the odds the mine will be developed.
I think it is far too risky. I would never put my assets in China. Too much chance it will be stolen away. Maybe he's using other people's money.
J.C., it's not just that the money will be spent in a venture with China that would bother me, rather, the business itself - coal! In the very near future, coal and oil products will be reduced to second class citizens in the modern day world. Wind and Solar products will rapidly replace them.
Too, as you noted, Australia's richest man is 'raising money' for the venture. Doubt he's putting up much 'front' money. He won't lose much, if anything should the deal sour at a later date.
Wdbox, are you serious?? Unless by near future you mean 100 years from now, you are way off. Renewable energy produces 7% of the world energy and an insignificant share of worldwide energy profits. Wind and solar are decades away from replacing coal and oil. Coal and oil usage is going up, not down!