Melbourne (Platts)--1Feb2013/542 am EST/1042 GMT
Brazil's Vale is set to secure Aquila Resources' 24.5% share in the Belvedere coking coal project in Queensland and become the sole owner, after a long-running dispute since mid-2010 between the two companies over market value of the stake was settled Thursday, both companies said Friday. The companies have agreed with investment bank Rothschild's assessment that a fair market value for the 24.5% share was A$150 million ($156 million). Vale already owns the balance of the central Queensland project. "The purchase price of A$150 million is equivalent to the fair market value recently determined by a third party expert engaged by Vale and Aquila," Vale said in a statement Friday. Vale will pay an additional A$20 million to cover the cost of legal proceedings relating to the dispute. Article continues below...Request a free trial of: Steel Markets DailySteel Markets Daily provides transparent daily and weekly assessments of iron ore, coking coal, coke, ferrous scrap and ferroalloys prices, plus insightful analysis and commentary on the day's market activities.
Brazil's Vale is set to secure Aquila Resources' 24.5% share in the Belvedere coking coal project in Queensland and become the sole owner, after a long-running dispute since mid-2010 between the two companies over market value of the stake was settled Thursday, both companies said Friday. The companies have agreed with investment bank Rothschild's assessment that a fair market value for the 24.5% share was A$150 million ($156 million). Vale already owns the balance of the central Queensland project. "The purchase price of A$150 million is equivalent to the fair market value recently determined by a third party expert engaged by Vale and Aquila," Vale said in a statement Friday. Vale will pay an additional A$20 million to cover the cost of legal proceedings relating to the dispute.
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Steel Markets Daily provides transparent daily and weekly assessments of iron ore, coking coal, coke, ferrous scrap and ferroalloys prices, plus insightful analysis and commentary on the day's market activities.
Perth-based Aquila said the transaction should be completed by the end of March, but the acquisition remains subject to indicative approval from the Queensland government. The Belvedere project has an indicated resource of 1 billion mt of mainly hard coking coal and is expected to become a 7 million mt/year capacity operation when it starts producing. The project, located near the town of Moura in the southern Bowen Basin region of Queensland, is at the feasibility study stage. Coal from the project will be shipped from the new Wiggins Island coal terminal, which is expected to be completed in 2015. Aquila has sold off coking coal assets in Queensland to fund development of its flagship West Pilbara iron ore project in Western Australia. This project received a boost on Friday with Aquila saying it had received state environmental approval to develop the new Anketell port from where the iron ore will be exported. The planned 350 million mt/year capacity port still requires federal government environmental approval. The West Pilbara iron ore project is a 50:50 joint venture between Aquila and American Metals and Coal International Inc. or AMCI.--Paul Bartholomew, paul_bartholomew@platts.com--Edited by Haripriya Banerjee, haripriya_banerjee@platts.com
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