Aquila Resources wins court case

04/06/2009 - 15:19

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Aquila Resources has had a win in the Queensland Supreme Court case relating to its dispute with its joint venture partner in the West Pilbara iron ore project.

Aquila Resources wins court case

Aquila Resources has had a win in the Queensland Supreme Court case relating to its dispute with its joint venture partner in the West Pilbara iron ore project.

Earlier this year, Aquila had invoked the dispute resolution process after it was unable to get AMCI to agree over the selection of Anketell Point as the preferred port site for the project.

AMCI retaliated by claiming it considered the dispute resolution process to be unenforceable and commenced legal proceedings.

Around a fortnight later, AMCI came to the table and gave the go-ahead to Anketell Point, which paved the way for a definitive feasibility study to continue.

The study is examining the viability of a 30 million tonne per annum direct shipping ore operation using new rail and port facilities in the region, with Onslow the second option for port development.

While both parties agreed on the port site choice, proceedings on the dispute resolution process were ongoing.

Today, the Supreme Court ruled in Aquila's favour, saying the dispute resolution clause is enforceable.

The court also awarded costs in Aquila's favour.

Earlier this year, Aquila said the JV will speak to third parties which may be interested in sharing port and rail infrastructure costs for any port location in the Pilbara.

 

 

The announcement is below:

 

Further to its previous announcement to the ASX in respect of the proceedings between the participants in the Australian Premium Iron Joint Venture, Aquila Resources Limited (ASX:AQA "Aquila" or "the Company") is pleased to announce that the Queensland Supreme Court today confirmed Aquila's view that the dispute resolution clause in the API Joint Venture Agreement is enforceable.

AMCI had contended that the dispute resolution clause was unenforceable. If AMCI's argument had been wholly successful there would have been no effective mechanism in the API Joint Venture Agreement for breaking deadlocks between the participants.

The Court also awarded costs in Aquila's favour.

With this matter resolved, Aquila looks forward to continuing to progress the West Pilbara Iron Ore Project for the benefit of its shareholders.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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