It would conclude a protracted dispute between Vale and joint venture partner Aquila Resources about the true value of the project, which saw the parties using valuation figures that varied by as much as $213 million.

Vale also agreed to settle all Belvedere litigation and disputes with Aquila for $20 million.

“Vale informs that it has entered into agreements to complete a purchase option exercised by Vale in June 2010, by which it will acquire an additional 24.5% stake in the Belvedere coal project from Aquila Resources,” the company said in a statement.

“The purchase price of $A150 million is equivalent to the fair market value recently determined by a third party expert engaged by Vale and Aquila.”

The acquisition, which is subject to Queensland government indicative approvals, will deliver Vale 100% of Belvedere.

Overall, Vale will have paid approximately$US338 million for Belvedere.

The Belvedere underground coal project is a future growth option located in the southern Bowen Basin region, near the city of Moura.

“The project is still in early stage of development and consequently its implementation is subject to board approval,” Vale said.

“According to our preliminary estimates, Belvedere has the potential to reach a production capacity up to 7 million metric tons per year of mainly coking coal.”