Aquila Resources Limited
(ASX:AQA) has increased its estimates of capital and operating costs for the $6 billion West Pilbara iron ore project in which the coal producer has a 50 per cent stake.
Aquila says complying with Western Australian government regulations have incurred additional capital costs.
Operating costs are also predicted to rise, impacted by the decision to outsource mining operations.
Aquila was recently in a budget dispute with its joint venture partner and was heading to arbitration after recent talks failed to reach resolution.
Aquila Resources reported a net loss of $238,000 in the 2012 financial year.
