Thursday, March 4, 2010

Aquila Launches Legal Action Over Eagle Downs Dispute

Aquila Resources has launched legal proceedings against Brazilian mining giant Vale, having last week served it with a default notice on the pair's $1 billion Eagle Downs coking coal joint venture.

Aquila said it has commenced proceedings against Vale's wholly owned subsidiary Bowen Central Coal in the Supreme Court of Queensland after it issued the miner with a default notice on the infrastructure arrangements for Eagle Downs.

The default notice concerned the infrastructure arrangements for the Eagle Downs project. Aquila wanted to ship coal along the $2 billion rail line being developed by Queensland Rail from the Bowen Basin to the part terminal at Abbot Point; however, Vale preferred to use the expanded port facilities at Dalrymple, which would result in a two-year delay to the project.

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