Aquila’s joint ventures with AMCI include Isaac Plains, Bowen Central and Belvedere.
Of the assets CVRD has acquired from AMCI, Aquila owns a 50% interest in Isaac Plains, 50% in Bowen Central and a 50% interest in the prospective Peak Downs East underground coking coal project through the Bowen Central Coal joint venture.
In addition, Aquila holds a 50% interest in two joint ventures with subsidiaries of AMCI – Belvedere and the Australian Premium Iron Joint Venture (API) – neither of which are included in the CVRD buyout.
“AMCI Holding Australia has notified Aquila that it has restructured its venture interests in API and Belvedere in order to effect the sale to CVRD. Aquila is currently considering the impacts of the restructuring to ensure that any such restructuring is compliant with the joint venture agreements,” Aquila said this morning.
CVRD’s current exploration study of Belvedere, which is nearing completion, could also have a positive impact on Aquila. After completing the study CVRD may exercise an option to acquire a 51% interest in Belvedere by paying AMCI and Aquila $A45 million.
Subject to acquiring the 51% interest, it may also exercise a further option to buy 100% of Belvedere by acquiring AMCI and Aquila’s interest at a “fair market value”