australian premium iron (api) joint venture

Any one heard any update from below??? Apparently valuation of API should come out soon.. waiting to the spike.....


China in the mix for another Pilbara asset
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Sarah-Jane Tasker | June 27, 2009
Article from: The Australian
CHINA'S reach in Western Australia's iron ore region could expand further, as Aquila Resources' private partner is shopping around its stake in the West Pilbara joint venture.
AMCI, a unit of privately owned American Metals and Coal Industries, is believed to have hired UBS to gauge interest in its 50 per cent stake in the Australian Premium Iron (API) joint venture with the Perth-based miner.
Russell Tipper, Aquila general manager, iron ore, said he had heard the rumours in the market but AMCI had not told the company what it was planning.
"I don't know the nature of the deal and they have not contacted us yet about our pre-emptive right," he said.
Aquila has a pre-emptive right to match any offer made to buy all or some of AMCI's iron ore interest but analysts have suggested it may not be in a position to buy out its partner and could look to potential Chinese customers for support.
UBS could not comment on the speculation but it is understood that it has been charged with determining whether there is interest in the market for all or part of AMCI's stake.
The sales process is said to have started some time ago but is not close to being finalised.
Shares in Aquila were up 6.67per cent on the speculation yesterday, to close at $5.76.
API -- which was formed in 2005 -- manages the West Pilbara project, and has plans to export ore through a new port facility at Ankatell Point. The miner announced this week that it planned to study the development of the port at Ankatell with Fortescue Metals Group.
One analyst said the sales process for AMCI's stake was important because it would place a value on the West Pilbara project, which has been difficult to evaluate.
"The project has a very high capex for its 30million tonne target. Its capex target of about $4.1billion depends on others committing on infrastructure, so it makes the actual project difficult to value," he said.
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