A legal brawl between mining giant Vale and Australia’s Aquila Resources has been halted so they can start selling coal again.
The miners’ Isaac Plains Coal Mine had been subject to a stoush in which Aquila accused joint venture partner, Brazil’s Vale of stopping shipments from the mine last year.
Aquila, which is in the ASX-100, sued Vale last July for four shipments it says it had been stopped from exporting.
It has now dropped that damages claim worth tens of millions of dollars.
Aquila and Vale are also battling each other in court about two other as-yet undeveloped coal projects in Queensland.
The Isaac Plains dispute related to marketing of the coal, with Aquila saying it believed the joint venture partners’ agreement allowed it to separately ship the coal from the mine while Vale did not.
On Monday, it said it had resolved those issues, allowing both parties to sell coal until the end of June next year.
Both parties have a 50 per cent stake in the Galilee Basin mine.
The Isaac Plains mine is Aquila’s only cash generating and producing asset and Aquila is banking on the revenue to fund its $3 billion share of a West Australian Pilbara iron ore project, which includes a proposed port at Anketell Point.
Aquila executive chairman Tony Poli could not be reached for a comment.
He has previously accused Vale of “destructively” delaying projects and holding up sales to force his company to sell assets cheaply.
However Aquila has a history of legal battles with joint-venture partners such as Pasminco and ACMI.
Aquila is currently in negotiations to sell its Washpool coal project in Queensland to an Indian consortium in what is believed to be a $301 million deal.
Shares in Aquila closed down four cents to $4.94 after being in a trading halt for the first half of Monday.