Australia's Richest Man Gambles On China

Meanwhile, the Australian government has signaled its support, putting China First is a fast track for regulatory approvals. Canberra has been blocked or delayed some other Chinese mining investments in the past year out of fear China would own too much of Australia's natural resources industry.

But so far those fears have been outweighed by the potential upside of developing China First. The mine project, in central Queensland's Galilee Basin, is expected Thurs bring scores of jobs Thurs rural Australia and Likely would remain undeveloped without Chinese capital.

The project faces significant logistical Hurdles, however. The coal deposit is located 490 kilometers inland, and analysts have said the cost of building a network railway to transport the coal to a port is Queensland's north eastern coast will make profit margins tighter than at other Australian coal mines.

RBS analyst Tom Sartor Morgans in Brisbane First said China requires such major infrastructure and capital outlays that it can not support the U.S. $ 3 billion Mr. Palmer is seeking in the Resource House offering, despite the backing of China. Mr. Palmer acquired the assets in China First a deal Thurs Takeover Brisbane-based Waratah Coal last year that valued the assets at less than U.S. $ 100 million, Mr. Sartor noted.Read More Story,http://online.wsj.com/article/SB10001424052748704197104575050730955776738.html?mod=googlenews_wsj

Australia's Richest Man Gambles On China