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Aquila subsidiary IP Coal and Vale IP – which are equal joint venture partners in the Isaac Plains – have extended a “lifting agreement” from the mine which was due to expire at the end of the month.
IP Coal also agreed with Vale IP to discontinue the damages claim commenced by IP Coal in the Federal Court on July 11, 2011, with each party bearing its own costs.
“The issues between the parties arose from a difference of view where IP Coal maintains that each of it and Vale IP have clear rights to separately take their share of Isaac Plains coal and deliver it to their respective customers,” Aquila executive chairman Tony Poli said in a statement.
“Vale IP does not agree with this and has asserted that a further agreement is needed to permit this.
“Whilst IP Coal does not agree with Vale IP’s view, in order to resolve the outstanding issues between the parties, IP Coal has agreed to enter into a lifting agreement with Vale IP which applies with immediate effect until 30 June 2013.”
Comment from Vale was sought by ILN but not received at the time of publication.
The interim lifting arrangement was working well and both parties were able to utilise the mine’s logistics to carry out their sales programs, Aquila said in its December quarterly report.
IP Coal’s products are a mix of metallurgical and thermal coals, which are exported through Dalrymple Bay coal terminal.
But Vale IP still has not approved a full-year budget for Isaac Plains, which has the backing of IP Coal.
Isaac Plains was being operated on the basis of monthly budget approvals while IP Coal continued to discuss with Vale IP approval of a revised full-year budget, Aquila said in its quarterly report.
The newly commissioned dragline at Isaac Plains mine in Queensland helped lift production at the mine by 31% as it achieved its first full six months of operation.
Isaac Plains reported 1.7 million tonnes of coal mined in the six months to December 2011, compared to the 1.3Mt for the previous corresponding period.
The company’s attributable coal sales from its 50% interest in the Isaac Plains coal mine increased by 14% to 636,595 tonnes.
