Dispute delays Isaac Plains coal shipments

Production and Markets

Publishing Date: 22 Jun 2011 10:52am GMT
Author: Mining Journal

Another dispute between joint venture partners Vale SA and Aquila Resources Ltd has caused further delays in shipments from the Isaac Plains coal mine in Australia.

Aquila said two shipments of coal that were anticipated for shipment by the end of the quarter would not proceed.

The delay follows a decision by Vale earlier this month to terminate an arrangement for joint marketing of the mine’s coal with Aquila’s subsidiary, IP Coal Ltd. Vale’s move has already delayed one shipment from the operation.

Aquila said discussions between the two parties to resolve the issue of shipping the coal separately “have been ongoing”.

The company said: “However, to date, these discussions have not resulted in agreement being reached.”

Vale and Aquila have been feuding for the past 12 months. In June last year the two parties were in dispute over the budget at their Eagle Downs coking-coal joint venture in Queensland.

On top of that, the Supreme Court of Queensland earlier this week denied a Vale claim against the valuation Aquila commissioned to determine the value of its stake it planned to sell of the Belvedere project to the Brazilian company.