Aquila Resources Ltd is fighting anew with its Brazilian partner, Vale and this time the two companies are in dispute over the approval of part of their proposed 2010/11 budget to start the construction of their Eagle Downs coal joint venture in Queensland.

Earlier in March, Aquila sued Vale as it claimed that the world's largest miner refused to contract infrastructure arrangements for their joint project.

On Tuesday, Aquila said that the new issue is now focused on the conditions from which the initial capital works component should be approved.

The company said that Bowen Central Coal Pty Ltd, Vale's subsidiary, wanted first Aquila to undertake and deliver a feasibility study that would enable "the participants in the project make a decision to undertake mine development for the relevant development area."

On the other hand, Aquila said that binding commitments for port and rail logistics should not be a prerequisite for the delivery of the feasibility study though it stressed that it is the company's strong view that "port and rail logistics which are sufficiently certain to be acceptable to relevant financial institutions are a necessary component for a feasibility study to be complete."

As of 1152 AEST, Aquila shares were trading at $8.59, shedding 13 cents or 1.49 percent.