China to invest billions in Australia

Submitted 23/06/2010

AAP

 

China is Australia's largest trading partner, and its thirst for iron ore and natural gas helped keep Australia out of the global recession.

Mr Rudd said the 10 deals focused on resources and energy.

"This demonstrates the dynamic relations between the two countries in this sector, and the strong complementarity of the two economies," he said in a statement.

Under one deal, Chinese companies will help fund a US$8 billion coal mine, railway and coal-loading terminal near Bowen in Queensland.

Mr Rudd said that deal would yield $A4 billion in exports each year for 25 years.

Another deal commits Chinese experts and engineers to work on the expansion of Fortescue's iron ore projects in the Pilbara region of Western Australia, which Mr Rudd says will be worth $A5 billion a year in exports.

Fortescue boss Andrew "Twiggy" Forrest is a vocal opponent of the government's proposed new mining tax.

China Development Bank will provide $US1.2 billion for a joint venture to build a new port and rail facilities at Oakajee in Western Australia, and invest in Aquila's coal and iron ore projects in the Pilbara.

Not all of the deals involve resources.

A new quarantine arrangement will allow for Tasmanian apples to be exported to China, while other deals aim at cooperation in education and telecommunications.

NEW DEALS

  • $US1.2 billion ($A1.36 billion) facility agreement between Karara Mining Ltd and China Development Bank Corporation (CDB).
  • Memorandum of Understanding (MoU) on cooperation on project development between South Australia and CDB.
  • MoU on cooperation on project development between Aquila Resources and CDB.
  • MoU between the Party School of the Central Committee of the Communist Party of China and The Australian National University.
  • Joint-venture agreement between China National Offshore Oil Corporation and Arckaringa Energy Pty Ltd.
  • Strategic Partnership Agreement between Telstra and ZTE.
  • Engineering and procurement contract cooperation agreement for China Gezhouba Group Company Ltd to provide procurement, engineering and design services to Fortescue Metals.
  • Cooperation agreement of China First Coal Development between Resourcehouse, Export-Import Bank of China, Metallurgical Corporation of China and China Power Holdings.
  • 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.
  • Protocol of phytosanitary requirements for the export of apples from Tasmania to China.