Aquila dispute with West Pilbara partner

Aquila Resources has started Supreme Court action against its joint venture partner in the West Pilbara iron ore project.

In a statement to the Australian Securities Exchange, Aquila said there was a dispute with AMCI in relation to the required content for a Feasibility Study and the timing of a decision to undertake mine development.

"While AMCI has supported a conditional resolution to undertake mine development on the basis of the current studies, Aquila Steel has not approved such a resolution as it believes it appropriate that further work be done before considering a decision to undertake mine development," the ASX statement said.

Aquila said the parties are still in discussions on the matters.

However it has launched the court action for "certain declarations and injunctive relief".

This includes a declaration that the provisions of the joint venture agreement, which allow one participant to buy out the other, will not be activated.

Aquila is already embroiled in another legal dispute with Vale which started legal action in September after rejecting the Tony Poli-led iron ore and coal miner's valuation of the Belvedere coal project in Queensland.