Resourcehouse Limited (“Resourcehouse” or the “Company”), an international diversified resources company, announced today that it has entered into an engineering, procurement and construction management (“EPCM”) contract with MCC Overseas Ltd (“MCC Overseas”), a subsidiary of Metallurgical Corporation of China Limited (MCC) in relation to the Galilee Coal Project with a project budget of US$8.013 billion.
Under the EPCM Contract, MCC Overseas is responsible for the design, engineering, planning, procurement, construction management, coordination, administration, pre-commissioning, commissioning and production start-up of the Galilee Coal Project.
“The selection of an EPCM contractor considerably advances the development plans for the Galilee Coal Project”, said Professor Clive Palmer, Chief Executive Officer and Executive Director of Resourcehouse. “MCC has an exceptional record of successful mine development and we are confident of the success of our project.”
The Galilee Coal Project is located in the Galilee Basin in Central Queensland. The project is based on a contractual right to mine up to 1.4 billion tonnes of raw coal from coal deposits in Queensland containing JORC compliant mineral resources of approximately 3.7 billion tonnes (including ore reserves of 1.1 billion tonnes of coal).
Resourcehouse intends to commence the design phase of the Galilee Coal Project in the first quarter of 2011. Commencement of the physical construction of the project is scheduled for the third quarter of 2011, with commissioning and commercial production expected in the second quarter of 2014.