Positive study for Aquila ResourcesEmail Print Normal font Large...

Positive study for Aquila Resources
Email Print Normal font Large font May 6, 2008 - 12:55PM


Carbon steel resources producer and developer Aquila Resources Ltd said it can deliver a 25 million tonnes per annum (Mtpa) iron ore operation at its West Pilbara project.

Aquila's pre-feasibility study for the first stage of the project has examined port options, infrastructure at proposed mine areas and development of mine-to-port transport corridors.

The study confirms the technical and financial viability of 160 kilometres of new railway to a new open-access, deep-water port facility at Cape Preston, subject to commercial agreement with other parties with interests in the port, Aquila said.

About $US1.7 billion ($A1.79 billion) of the estimated capital expenditure will be incurred on the railway, ore wharf and channel.

The company said the project is capable of producing 30Mtpa in its first stage with a marginal increase in capital expenditure.

Construction of the first stage could commence in early 2010 with first shipments in 2012.

A definitive feasibility study is due to be completed in the second quarter of 2009.

Shares in Aquila were 72 cents, or 4.87 per cent, higher to $15.49 at 1219 AEST