Sumitomo Pulls Out of Australian Coal Venture

Australia’s Aquila Resources said Sumitomo will not acquire an interest in undeveloped coal mining leases it owns in the eastern part of the country. The two firms entered into a memorandum of understanding last April that gave Sumitomo the right to acquire a 20%-50% interest in 21 of Aquila’s Queensland mining sites. A local Sumitomo unit said the company is not in a position to pursue the matter, citing a downturn in coal prices.