Junior diversified miner Aquila Resources has completed signing an agreement with Brazilian major Vale for the Eagle Downs hard coking coal project in Queensland, Australia.
The Bowen Central Coal Joint Venture (BCC JV) is 50% owned by the Aquila Resources’ wholly owned subsidiary, Aquila Coal in a joint venture with Vale’s wholly owned subsidiary, Bowen Central Coal.
Following re-evaluation of capital spending in a soft coal price environment, Aquila and Vale in June last year deferred completion of Eagle Downs from November 2016 to the first half of 2017, according to miningweekly.com.
With the agreement, Aquila and Vale have resolved their differences and are aligned to complete the construction of Eagle Downs project.
With the agreement, each party can bear its own legal costs in the proceedings and the settlement is unconditional and immediately effective.
Settlement of the legal proceedings will also enable the BCC JV to focus on developing the Eagle Downs hard coking coal project unimpeded by litigation.