Australian miner Aquila Resources Limited has announced that it expects the divestment of its 50 percent stake in Isaac Plains Coal Mine, a joint venture with Brazil-based mining giant Vale, to be completed in July upon gaining approvals from the government of the Australian state of Queensland.
Aquila Resources has received approval from the Australian Foreign Investment Review Board to sell its stake to Ocean Coal Mining, a subsidiary of Japan's Sumitomo Corporation, for a consideration A$430 million. The company also stated that Vale has not used its 60-day pre-emptive rights to buy out a 100 percent interest.
Aquila Resources will use the proceeds from the sale to fund the estimated A$3 billion share of development costs for its iron ore project in the Pilbara region of Western Australia.