The aggressive move by AMCI onto the share register of iron ore junior Red Hill Iron has again sparked talk the resources-focused private equity outfit may be positioning itself for a takeover with joint venture partner Aquila Resources.

AMCI and associated private equity group First Reserve yesterday announced it had agreed to buy Giralia Resources' 16.8 per cent in Red Hill for $46.5 million, or $7 a share, which will take their combined stake in the $230 million junior to 17.8 per cent.