Australian Prime Minster Kevin Rudd is seeing the new agreements signed with China in Canberra yesterday as a way at getting back at those criticizing the RSPT. Of the 10 agreements signed 7 are related to the resources and energy sector.
Mr. Rudd has time and again accused the mining industry of overstating the negative impact of the proposed 40% mining tax. Perhaps this time he can be pardoned for reading too much into the 7 deals linked to energy and resources signed with China.
Only two relate to existing mining projects while the rest are memorandums of understanding or joint venture agreements to investigate possible future projects. Even the mining industry agrees that China would be the one country which would continue to invest in Australia as it is looking for long term suppliers and not instant profits like the western companies.
The agreements included ones with Andrew Forrest's Fortescue Metals and Clive Palmer's Resourcehouse. Both the men have been critical of the RSPT.
- 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.
- 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.
- 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.
- Arckaringa Unincorporated Evaluation Joint Venture Agreement between China National Offshore Oil Corporation and Arckaringa Energy Pty Ltd
Signatories: Mr Christopher Lambert, Chairman, Altona Energy; Mr Fu Chengyu, President, China National Offshore Oil Corporation
- 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.
- 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.
- 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.
- 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.