Last minute coal lease bid by mining magnate Mr Clive Palmer

Thursday, 02 Jun 2011

QUEENSLAND mining magnate Clive Palmer waited until May 30th 2011 morning to apply for a mining lease over the area where he plans an USD 8 billion coalmining project.

Mr Palmer's company, Resourcehouse, is planning to list on the Hong Kong Stock Exchange some time this week after raising USD 3.6 billion to fund the development of a coalmine in the Galilee Basin in central Queensland and an iron ore project in Western Australia to supply China.

The Resourcehouse prospectus points out that one risk for the project is in securing timely government licenses to allow the mine to go ahead, but public records show that the only government permit that Mr Palmer's company has over the area he wants to mine in the Galilee Basin in central Queensland is an exploration permit.

Under Queensland legislation, an EP is only the first step towards constructing a mine, with the next being a mineral development licence and then a mining lease, which bestows an authority to actually start mining.

The company that originally held the leases and was taken over by Mr Palmer, Waratah Coal, has held an EP for several years over the land known as the China First project.

According to the prospectus, Mr Palmer intends to start developing the mine site by the end of this year, but there are only seven months left in the year, and it is unlikely a full ML could be granted in this time.

Even if Resourcehouse can complete the necessary environmental impact statement and other documentation by year's end, the process allows for the public to appeal against a project, and there are almost certain to be some public appeals.

(sourced TheAustralian)