Aquila receives EPA go ahead

THE BOURSE WHISPERER: Aquila Resources has been given the environmental thumbs up by the Environmental Protection Authority for the West Pilbara iron ore project (Aquila 50%) in the Pilbara region of Western Australia.

The EPA has recommended environmental approval for the mine and rail facilities for the project.

“Having made a substantial investment in the approvals and engineering process, it is rewarding to achieve a significant project milestone for Aquila’s shareholders,” Aquila Resources executive chairman Tony Poli said in the company’s ASX announcement.

“We look forward to working constructively with the WA Government and other stakeholders to deliver a strategically important port and rail solution to unlock the western Pilbara for a range of resources companies.”

The first stage of the project entails a 30 million tonnes per annum mining operation based on Reserves located south of Pannawonica and a rail network connecting the mine with a new port facility to be constructed at Anketell Point, west of Cape Lambert.

“Having started the approvals process more than three years ago, we are mindful of delivering this project in a timely manner,” Poli said.

“We are on track to commence construction of the Anketell Port in the second quarter of 2012 and this timeline has been welcomed by a number of other mining companies in the Pilbara.”

The EPA has recommended to the Western Australian Minister for the Environment that the project be approved, to develop the current eight iron ore deposits and the 285 kilometre heavy-haulage railway from the mining area to the proposed new port at Anketell Point, constituting the Stage 1 development of the project.

The recommendation allows for the full exploitation of the known Reserves at those ore bodies, comprising the first 15 years of the project, and enables implementation of the mine plan in accordance with the project schedule.

A number of conditions are to be imposed and the EPA report is subject to a two week appeal period.

Aquila said it is continuing to work with the State Government on the design of the proposed multi-user Anketell Port and environmental approval of the Public Environmental Review for the development of Anketell Port remains scheduled for Q4 2011.

In its recent quarterly report, Aquila said work has been undertaken towards securing a significant debt facility to help fund its share of the project’s development costs.

A Definitive Feasibility Study is currently being finalised and is due for release in the next few weeks.