Aquila halts trading

Aquila Resources has halted trading ahead of a possible exit from the big Belvedere coking coal project in Queensland, of which it owns 24.5 per cent.

Aquila last month announced that joint venture partner AMCI Holdings was negotiating to sell its stake in the Belvedere coking coal project in Queensland to Brazilian mining giant Vale, which owns the outstanding 51.5 per cent of the venture. Under the terms of the joint venture, Vale also has until tomorrow to exercise an option to acquire Aquila's stake at the same time.

The Belvedere project is expected to cost $2 billion to develop.

Aquila last week publicly stated its intent to sell its remaining interest in the Belvedere project to focus on its other Queensland coal projects and $4 billion West Pilbara Iron Ore project near Pannawonica.

The West Pilbara project also received a major boost today when it was granted major project facilitation status by federal infrastructure minister Anthony Albanese. Such status is aimed at streamlining approvals for major projects of national signficance.

The West Pilbara project will incorporate a 275 kilometre railway to a planned new multi-user deepwater port at Anketell Point, 30km east of Karratha.

Aquila is expected to complete its feasibility study for the project later this month.

Fortescue Metals Group, which is co-operating with Aquila on the port proposal, last month warned it would be shelving $17 billion of planned mine developments in the west Pilbara region due to the planned resources super profits tax.

However, Aquila iron ore general manager Russell Tipper told WA Business News last week that the company remained confident in the port development and that its work on the port proposal was continuing as normal.

Aquila and AMCI have to date spent over $145 million on exploration and mining and infrastructure planning for the West Pilbara project.