Felix Resources Ltd., an Australian coal producer, delayed construction of its A$405 million ($358 million) Moolarben coal mine after Xstrata Plc won an appeal in a dispute over mining leases.

Felix, partly owned by American Metals & Coal International Inc., won’t start building until it gets final court orders in the dispute, the Brisbane-based company said today in a statement. Felix had planned to start building this month, according to a July 30 statement.

Felix fell A$1.22, or 6.3 percent, to A$18.20 at the 4:10 p.m. Sydney time on the Australian stock exchange. The stock has more than doubled this year and is the best-performer on Australia’s benchmark index. It has a market value of A$3.6 billion ($3.2 billion).

The Moolarben mine, about 40 kilometers (25 miles) northeast of Mudgee in western New South Wales state, will provide 10 million metric tons a year of power-station coal for as many as 21 years. Thermal coal prices rose to a record last month amid rising demand from Asian power stations.

Xstrata is challenging the validity of Felix’s mining lease, which was approved by the New South Wales government in September.

“There have been no orders made by the Court of Appeal and consequently there are no immediate consequences from the judgment,” Felix said in the statement. Based on legal advice it is believed the mining leases “remain valid until a contrary order is made,” it said.

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