Aquila resolves Vale stoush

Aquila Resources says it has resolved its differences with joint venture partner Vale, with the two parties agreeing to the settlement of a long-running legal dispute related to their $1.25 billion Eagle Downs coking coal project.

Aquila and Vale had been entangled in legal action for several years in regards to the preferred mine development option at the Eagle Downs project.

The Eagle Downs dispute is one of several legal stoushes between the joint venture partners in recent years.

Aquila told the market today it had reached agreement with Vale for the settlement of all legal proceedings related to the Bowen Central Coal joint venture, which is developing the Eagle Downs project.

The settlement is unconditional and immediately effective and each party will bear its own legal costs.

"Settlement of the legal proceedings will alllow the Bowen Central Coal joint venture to focus its efforts on developing the Eagle Downs hard coking coal project unimpeded by litigation," Aquila said in a statement.

The company's shares closed the day's trade 3 cents higher at $2.75.