06/02/2009 - 13:02

Aquila, AMCI agree on WA port choice

06/02/2009 - 13:02

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Aquila Resources has partly resolved a dispute with its joint venture partner AMCI after both agreed on Anketell Point as the preferred port site for the West Pilbara iron ore project.

Aquila Resources has partly resolved a dispute with its joint venture partner AMCI after both agreed on Anketell Point as the preferred port site for the West Pilbara iron ore project.

The agreement allows a definitive feasibility study to go ahead, which will investigate the viability of a 30 million tonne per annum direct shipping ore operation using new rail and port facilities in the region.

The project has a resource of 493 million tonnes, with an update expected this quarter.

In addition, Onslow will be investigated as an alternate port site with risk mitigation work to continue.

The JV will also speak to third parties which may be interested in sharing port and rail infrastructure costs for any port location in the Pilbara.

An update of costs will be compiled for the study, with a timeframe for completion yet to be finalised.

Previously Aquila had difficulty obtaining agreement from AMCI over the port site which had prevented the definitive feasibility study from going ahead.

Today's announcement ends that dispute however a separate argument is continuing with papers lodged with the Supreme Court of Western Australia, Aquila general manager Russell Tipper said.

Mr Tipper told WA Business News that the disagreement relates to the enforceability of the dispute resolution clause in the JV agreement.

AMCI argues that the clause is not enforceable.

Shares in Aquila were down four cents to $2.44 at 15:03 AEDT.

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