Published 6:30 AM, 10 May 2012 Last update 6:30 AM, 10 May 2012
Market concerns that Aquila Resources will be unable to fund its plans to build a multi-user port at Anketell Point in the Pilbara sent the miner's shares to a three-year low Wednesday, despite an indication from West Australian premier Colin Barnett that Aquila could soon receive approval for the project's first stage, according to a report by The Australian.
The port is crucial to Aquila executive chairman Tony Poli's hope of bringing Aquila's $6 billion West Pilbara iron ore project online by 2015 to capitalise on robust commodity prices.
In April, Aquila sold its 50 per cent stake in the Isaac Plains coalmine in Queensland to secure some of the money needed to fund its-half share of the project.
However, the miner still needs to secure up to $2.5 billion from China Development Bank to go ahead with the project, but the bank has reportedly been reserved about committing to the project before the miner has secured the rights to build the port.
Mr Barnett on Wednesday said that the state had launched a formal process of land acquisition to allow the port construction, according to The Australian.
Aquila shares closed down six per cent, to $3.94 on Wednesday, the newspaper said.
AQA Price at posting:
$3.10 Sentiment: None Disclosure: Not Held
