Rothschild values Aquila's Belvedere share at $150M

AQUILA Resources and Brazilian giant Vale are locked in negotiations over the future of the Belvedere hard coking coal project in Queensland after Rothschild put a $150 million value on Aquila’s share.
Rothschild values Aquila's Belvedere share at $150M Rothschild values Aquila's Belvedere share at $150M Rothschild values Aquila's Belvedere share at $150M Rothschild values Aquila's Belvedere share at $150M Rothschild values Aquila's Belvedere share at $150M

Belvedere location, courtesy of Aquila.

Lou Caruana

Aquila subsidiary BD Coal and Vale Belvedere appointed Rothschild to act as determining valuer in relation to the final determination of the fair market value as at 2 June 2010 of Aquila’s 24.5% venture interest in Belvedere, which Vale has exercised an option to acquire.

Rothschild undertook its own independent assessment of the project and delivered its final valuation report to Aquila and Vale, which determined the fair market value of Aquila’s 24.5% Venture Interest to be $150 million, Aquila said.

“Aquila is in discussions with Vale regarding the settlement of this transaction, and is also seeking to recover its project contributions made since 2010 and interest,” it said in a statement.

"The determining valuer will make a final determination of the fair market value, which will then allow the parties to move towards completion of the exercise of the option and receipt of the sale proceeds by Aquila."

Vale confirmed to ILN that discussions are continuing.

In April last year Aquila reached a breakthrough in its legal fight with Vale over the valuation of the Belvedere, with the Court of Appeal of the Supreme Court rejecting Vale’s bid to block a third valuation.

The dispute revolved around a valuation of 24.5% of the project made by Aquila and Royal Bank of Canada which was $213 million higher than the $117 million valuation provided to Vale by Citigroup.

Vale disagreed that a third valuation should be sought as per the joint venture agreement if there were variations of more than 10% and commenced proceedings in the Queensland Supreme Court.

These proceedings were struck out by Queensland Court of Appeal, making way for the third valuation.

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