Aquila resources moves to end West Pilbara budget dispute

THE BOURSE WHISPERER: Aquila Resources (ASX: AQA) and its joint venture partner in the West Pilbara iron ore project, AMCI  have not been able to reach agreement on a proposed budget for the 2012/2013 financial year.

The dispute had earlier been referred to arbitration in September 2012, in accordance with the dispute resolution procedures of the Joint Venture Agreement.

As a result of the existence of the budgetary dispute, the project had had been operating on minimum expenditure.

“Aquila advises that it has given notice to AMCI which Aquila considers brings to an end the arbitration about the budget for the 2012/2013 financial year,” Aquila Resources said in an announcement to the ASX.

“In conjunction with this decision, Aquila has also agreed to maintain the project on minimum expenditure for the remainder of the 2012/2013 financial year.

“Aquila will continue to focus its efforts on how best to progress the project.”