2010-06-21 14:29

Aquila Resources Ltd, a partner with Vale SA in Australia, made an initial agreement with China Development Bank Corp to develop its iron ore and steelmaking coal projects.

"China Development Bank will actively support Aquila both in Australia and China, in the investment in and financing of Aquila's various projects," the Perth-based company said in a statement. Financial terms of the partnership weren't given.

Aquila plans to develop a A$4.1 billion ($3.6 billion) iron ore mine, port and rail project in Western Australia and coal mines in Queensland. The company expects government approvals for the West Pilbara project by the end of next year.

Baosteel Group Corp, which owns a 15 percent stake in Aquila, is a strategic partner of China Development Bank, it said. Aquila's Eagle Downs coal project, jointly owned by Vale, needs about A$1 billion to proceed, Russell Tipper, general manager of iron ore, said in a May 27 interview.

Aquila rose 3.8 percent to A$9.41 on the exchange at 12:41 p.m. Sydney time, giving the company a market value of A$3 billion.

"As Aquila's projects are predominantly in steel raw materials, they are clearly seen as important from the perspective of China's rapidly growing steel industry," the statement said.