The company, which sold its 50% stake in the Isaac Plains coal mine for $430 million in the six months to, is scaling back its coal investment as it seeks to develop its iron ore operations in Western Australia.
“[The company] has re-tendered major contracts for the Eagle Downs hard coking coal project to reflect the cooling market for coal mining and construction services in Queensland,” it said.
“Execution of major contracts arising from this process is expected in the second half of FY13.”
Isaac Plains delivered Aquila $30.7 million in profit in the six months to December 2011.
Construction of the Eagle Downs hard coking coal project is underway, with project completion targeted for the end of 2016, it said.
In the six months to December, the company completed the electricity substation, construction of employee housing, and management of the gas drainage wells.
Aquila said last month the company had reached an agreement with Brazilian giant Vale after a protracted dispute on a $150 million valuation for a 24.5% interest in the Belvedere coking coal mine in Queensland.
Vale has agreed to take up the option and pay Aquila the $150 million as well as settle all Belvedere litigation and disputes with Aquila for $20 million.
