Reuters reported Aquila Resources (ASX:AQA) is scrambling to cut planned spending on an Australian iron ore project after cost estimates jumped a quarter to A$7.6 billion.

As quoted in the market news:

Aquila aims to build a mine, rail and port in Western Australia with annual iron ore production of 30 million metric tons, but its half-owned project is under pressure due to weak Chinese steel demand, soaring capital costs and a strong local dollar.

The West Pilbara Iron Ore project is one of the biggest in a $250 billion pipeline of planned mining investments in Australia that may be frozen or delayed as bankers get nervous about the outlook for iron ore and coal, and escalating costs.

Click here to read the full Reuters report.