Vale Aussie Unit Denies ‘Default’ Accusation

Aquila Resources is accusing Vale’s Australian coal unit Bowen Central Coal (BCC) of not complying with infrastructure agreements related to the Eagle Downs Hard Coking Coal joint venture project, which is worth about $900m. In a statement filed in the local market, Aquila says the JV had agreed to ship 4m metric tons of coal through Abbotts Point port, but that BCC does not support the entry into infrastructure arrangements. Aquila Coal considers this to be a default under the joint venture agreement and has issued BCC with a default notice under the joint venture agreement. BCC says it does not agree that it is in default, as it prefers to ship coal from Eagle Downs through the Dalrymple port, according to a company statement filed with the Australian stock exchange.