Since last August, Aquila has risen from 63c to around $3, with a peak of $3.05 earlier this month. At its latest price, Aquila is capitalised at $147 million, an indication of how seriously the market is treating the company's plans to develop first the Isaac Plains coal mine, followed by the Belvedere mine, and then a possible iron ore project.

It wasn't always so good for Aquila and its management team led by Tony Poli. Back in January 2001, a freshly floated Aquila was a hot stock because it had signed a deal to buy Pasminco's stake in Ernest Henry. By March of the same year, the rug was pulled out from under the deal when Ernest Henry's 51% shareholder, MIM, exercised its right to the Pasminco stake.

From around 75c at the height of enthusiasm for the deal Aquila crashed to less than 20c, leaving everyone involved with a bitter taste in their mouths, and a genuine feeling of being deceived.

For followers of the Aquila story, the Ernest Henry case should not be forgotten, because it may yet have its day in court and Aquila could walk away a lot richer if its claims of deceptive conduct are upheld as the matter moves through the Federal Court.

Putting aside Aquila's claim for $153 million in damages, it is simpler at this stage to follow the coal and iron plans, treating any legal win as a future possible bonus.

First cab out of the mine ranks should be the Isaac Plains project in the central Bowen Basin of Queensland. Aquila is close to completing a feasibility study into a start-up operation producing two million tonnes of coal a year, 75% in the high-value coking category and 25% in the lower-priced steaming category.

Ongoing exploration at Isaac Plains has extended the strike length of coal seams to 4.5km with analysis of the coal showing it to be of good quality. Preliminary plans call for a plant processing 500 tonnes an hour, working four days a week, with room for expansion.

The Belvedere project is less advanced but was earmarked in the 1980s as the site of a potential underground mine by previous owners. Aquila has been able to expand the tenement position around Belvedere and is working up a mine development plan, possibly as a large-scale underground operation.

Iron plans are more in the potential category than coal with two joint ventures in the Pilbara area, and no firm mine plans. One of the projects is with platinum and gold hopeful Helix Resources and the other with Aquila's partner in coal, AMCI Holdings.

The iron ore exploration tenement position covers more than 3500 square kilometres, which sounds impressive, but requires a lot more work before it can be treated as a factor in the Aquila share price.-Australia's Mining Monthly