Brazil's Vale wins appeal to force vote on Aquila JV

Brazil's Vale has won a court appeal, which could result in its partner Aquila Resources having to vote on a coal development plan and open the way for Vale to buy out Aquila from their $1.7bn coal project.

The Queensland Supreme Court backed an appeal by Vale and dismissed an application by Aquila to block the crucial vote on Vale and Aquila's Eagle Downs coking coal project in the state.

The court found that blocking the vote would affect the rights of Vale, referred to as BCC - Bowen Central Coal, and may delay the project.

"If it does, the consequences might be very significant and wide ranging," the judges said in the ruling on Thursday.

Aquila said on Thursday it was considering whether to appeal the decision and whether to seek orders restraining Vale pending the hearing of any further appeal.

"Work will continue on seeking to identify and secure a suitable port and rail logistics solution for the project, as will discussions with Vale on options so that the project can be developed in the best interests of the joint venture," Aquila executive chairman Tony Poli said in a statement.

Aquila's shares fell 3.4% to A$5.92 on Thursday, underperforming a 0.2% fall in the broader market.

(Published by Reuters - November 24, 2011)