MARKETS

Rothschild values Aquila's Belvedere share at $150M

AQUILA Resources and Brazilian giant Vale are locked in negotiations over the future of the Belve...

Lou Caruana
Rothschild values Aquila's Belvedere share at $150M

Aquila subsidiary BD Coal and Vale Belvedere appointed Rothschild to act as determining valuer in relation to the final determination of the fair market value as at 2 June 2010 of Aquila’s 24.5% venture interest in Belvedere, which Vale has exercised an option to acquire.

Rothschild undertook its own independent assessment of the project and delivered its final valuation report to Aquila and Vale, which determined the fair market value of Aquila’s 24.5% Venture Interest to be $150 million, Aquila said.

“Aquila is in discussions with Vale regarding the settlement of this transaction, and is also seeking to recover its project contributions made since 2010 and interest,” it said in a statement.

"The determining valuer will make a final determination of the fair market value, which will then allow the parties to move towards completion of the exercise of the option and receipt of the sale proceeds by Aquila."

Vale confirmed to ILN that discussions are continuing.

In April last year Aquila reached a breakthrough in its legal fight with Vale over the valuation of the Belvedere, with the Court of Appeal of the Supreme Court rejecting Vale’s bid to block a third valuation.

The dispute revolved around a valuation of 24.5% of the project made by Aquila and Royal Bank of Canada which was $213 million higher than the $117 million valuation provided to Vale by Citigroup.

Vale disagreed that a third valuation should be sought as per the joint venture agreement if there were variations of more than 10% and commenced proceedings in the Queensland Supreme Court.

These proceedings were struck out by Queensland Court of Appeal, making way for the third valuation.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production