Budget dispute moves Aquila’s spending to a “minimum”

Aquila Resources has had to move spending on its fledgling Pilbara iron ore project to “minimum” levels due to a dispute over its budget with joint venture partner AMCI.

In a statement Aquila said because the two parties could not agree on a budget for the rest of the 2012/13 financial year, spending on its West Pilbara Iron Ore project would be curtailed.

The dispute has been an ongoing issue for Aquila, and was referred to arbitration in September 2012.

The announcement follows the WA Government's decision to give Aquila the green light to develop Anketell Port, a key part of its $6 billion iron ore project.

The environmental approval marked a huge boost for the miner, which has long struggled for the rights to develop the port to its specifications.

To gain final support the Federal Government must now approve the development, which aims to export 350 million tonnes of iron ore per annum.

Final approval for the development is crucial to Aquila securing the bulk of the $3 billion funding it needs to fuel its ambitious project.

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