The outlook for Aquila Resources' Queensland coal project appears gloomy with the company admitting it has revised its work plan and reduced the workforce.
In the wake of media speculation that the project was being canned, Aquila has released a statement conceding it has asked the managing company to reassess the project.
Aquila has asked Eagle Downs Coal Management to take a conservative view of necessary activity and focus on critical development paths.
This has included re-prioritising early construction work, which has resulted in the workforce being reduced.
Aquila said the revised work program would be presented to the board for approval later in the week.
The company’s shares dropped 5 per cent to $1.8 per share (12:40PM WST) following the announcement.
Aquila Resources has also been struggling with low commodity prices and troubled joint venture negotiations over its West Pilbara Iron Ore project.
The project was put on ice in September when iron ore prices dropped and negotiations with joint venture partner AMCI over a budget for the project have not been resolved.
