China's power company says "it did not contact nor negotiate" with Resourcehouse

The Hong Kong-listed China Power International Development Limited (CPI) denied any "contact" or "negotiate with Resourcehouse Ltd about any agreement" on Tuesday.

Li Xiaolin, chairperson of the board of directors of the CPI, said in a clarification announcement to the Hong Kong Stock Exchange, regarding reports on the Company's agreement to purchase 30 million tons of coal annually from Resourcehouse Ltd., an Australian mining company, for a period of 20 years.

CPI "has reviewed the Articles thoroughly and confirms that it did not contact nor negotiate with Resourcehouse Ltd about any agreement and the Company did not sign any documents, whether legally binding or not, with Resourcehouse Ltd," according to the announcement.

Li said the Board of CPI has no knowledge of the source of the information on which the reports were based and advised shareholders and potential investors to be cautious.

Resourcehouse, the Australian coal and iron-ore project developer planning a Hong Kong listing next month, claimed on Saturday that it had signed the massive deal with CPI, according to which Resourcehouse would supply 30 million tonnes of coal annually to CPI over next 20 years.

An CPI official, who did not want to be named, said Monday the sum of 60 billion U.S. dollars was an estimation by Resourcehouse, which was revealed by the Australian company probably for its own benefits.

Source: Xinhua