Aquila Resources and its joint venture partner AMCI have ended up in a legal dispute after failing to reach agreement on plans for a new port in the Pilbara for their proposed iron ore project.
Aquila's full statement is pasted below:
Aquila Resources Limited (ASX:AQA "Aquila" or "the Company") previously announced on 5 December 2008, that the Project Manager of the Australian Premium Iron Joint Venture, in which the Company through its wholly owned subsidiary Aquila Steel Pty Ltd ("Aquila Steel"), is a 50% participant, had recommended Anketell Point as the preferred port option for the West Pilbara Iron Ore Project.
Aquila Steel has not yet been able to obtain the agreement of AMCI(IO) Pty Ltd (the other joint venture participant) to progress the Definitive Feasibility Study for the Project on the basis of the Project Manager's recommended preferred port option (Anketell).
Aquila Steel has invoked the dispute resolution process in the API Joint Venture Agreement in an effort to resolve the issue and discussions continue. However, AMCI(IO) through its lawyers, recently advised that it considers the
dispute resolution provisions of the API Joint Venture Agreement to be unenforceable, including for lack of certainty, and stated an intention to commence legal proceedings on the matter.
Aquila disagrees with AMCI(IO)'s view of the dispute resolution provisions and has filed a writ of summons, in the Supreme Court of Western Australia seeking a declaration as to the enforceability of those provisions.
Aquila will seek to have this matter heard by the Supreme Court of Western Australia as soon as possible, and in the meantime intends to continue discussions with AMCI(IO) in an effort to resolve the matters in dispute.
