Mar,+Derek+13


 * China Makes Big Deal With Australia**

On February 6th, 2010, an Australian firm, Resourcehouse has signed a $60 Billion deal to supply China with coal to supply stations. China had made this deal because most of their supply stations rely on coal, and demand of coal has risen up after a government stimulus programme that renergized its economy. Also included in the deal, Australia will build a new mining complex to give China Power International Development (CPI) 30 tonnes of coal over a span of 20 years. For China, to get their annual coal they would have to pay up approximatly $3 billion per year. In addition, Australia would also have to build the complex in the Australian state of Queensland. Construction of the complex is scheduled to start later this year and coal production is expected to start in 2013. The Metallurgical Corporation of China Ltd awarded Resourcehouse about $8 Billion dollars to build the complex.

Sources: Reuters:http://uk.reuters.com/article/idUKB22954420100206?sp=true BBC:http://news.bbc.co.uk/2/hi/asia-pacific/8501777.stm

Some similarities that I noticed that they had similar titles, also both had some similar statistics, and also had the same similar quote. Some differences that I noticed that the Reuters article was a little more specific about the deal between the two sides. It also had more quotes than the BBC article. The Reuters article was more specific by the article talking about like who was the one who provided the money for Resourcehouse to build the mine and complex.

My opinion on this event is that I'm suprised by how much China was willing to spend on coal, $60 Billions worth. I guess it was a good spend because China needs it for the supply stations but I'm suprised by how much they bought and spend on that. But since the supply stations impact the country's economy then their economy would dramatically fall because of it. So, in conclusion, I think it was a good choice made by China and also it was smart to spread the payment over 20 years.