PERTH (miningweekly.com) – Australian explorer Aquila Resources has declared a dispute with its joint-venture (JV) partner for the Eagle Downs hard-coking coal project, in Queensland, regarding the infrastructure requirements for the project.

In December, Aquila reported that it had been offered four-million tons a year of the proposed expanded capacity at the Abbot Point coal terminal, subject to the completion of take or pay contracts during the first quarter of 2010.

The company also reported that the JV had been selected as a foundation customer by Queensland Rail for the Goonyella Abbot Point expansion project, to connect to the Bowen Basin rail infrastructure through to the Abbot Point coal terminal.

To commit to these infrastructure arrangements, the JV had to execute and return certain agreements in connection those arrangements to the relevant counterparties, by close of business on February 26

To enter into such commitments, both Aquila and its JV partner Bowen Central Coal (BCC), which is owned by mining giant Vale, had to agree to and procure the execution of the relevant agreements by their respective parent companies before the deadline.

Aquila said it had supported the entry into the infrastructure arrangements, but that BCC had not supported the arrangements.

“Aquila Coal considers this to be a default under the JV agreement and has today issued BCC with a default notice under the JV agreement,” Aquila chairperson Toni Poli said.

He said that BCC did not agree that it was in default.

“Aquila Coal will continue to seek to resolve the matter and will keep the market informed of any developments,” Poli added.

The Eagle Downs coal project is located some 7 km south of Aquila’s Isaac Plains coal project in the Bowen Basin region of Queensland. The project has a total measured, indicated and inferred resource base of around 780-million tons. First coal sales from the Eagle Downs project is expected in 2012.

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