Cazaly wins stay in Warden's Court

WA mining company Cazaly Iron Pty Ltd has had a win in the courts, with the contentious Shovelanna mining lease applications being stayed in the WA Warden's Court pending Supreme Court action.

The court ruling is the latest instalment in the long-running battle over whether the Shovelanna iron ore deposit in the Pilbara can be developed by Rio Tinto, as ordered by mining minister John Bowler, or can be obtained by Cazaly.

The full text of a Cazaly announcement is pasted below

WARDEN GRANTS CAZALY APPLICATION TO AMEND OBJECTIONS AND STAY RIO JV MINING LEASE APPLICATIONS

The Company has been advised that His Honour Warden Calder has made his decision in relation to the applications by Cazaly Iron Pty Ltd (Cazaly) to:

1. stay the mining lease applications M46/437 to M46/440 by Hamersley Resources Limited, Hancock Prospecting Pty Limited and Wright Prospecting Pty Limited (Rio JV); and

2. amend Cazaly's objections to the mining lease applications to expand the grounds of objection.

The Warden has granted both applications.

The grant of the stay means that the mining lease applications by the Rio JV in respect of the ground containing the Shovellana deposit cannot proceed until the Supreme Court has determined Cazaly's application for judicial review of the Minister's decision to terminate application E46/678 by Cazaly.

The grant of the amendments to the objections means that at the hearing of the mining lease applications by the Rio JV, Cazaly will be permitted to lead evidence supporting the following arguments which Cazaly believes justify the refusal of the mining leaseapplications by the Rio JV:

1. Since 1989 the Rio JV has not conducted any significant exploration on E46/209.

2. In the event that the mining lease applications by the Rio JV are granted, the Rio JV does not intend to conduct any exploration or mining in the foreseeable future.

3. The Rio JV was only able to continue to hold E46/209 by reason of a policy administered by the Department of Industry & Resources of giving special treatment to iron ore tenements so as to allow exploration licences authorised for iron ore to be utilised as holding titles.

4. The policy is inconsistent with the provisions of the Mining Act 1978 (WA) and/or contrary to the purpose of the Mining Act 1978 (WA).

5. The 11 extensions of terms granted in respect of E46/209 were unlawfully granted because:

(a) the Rio JV had no intention of conducting further exploration or mining on the ground the subject of E46/209 in the foreseeable future; and

(b) the extension of term applications did not disclose exceptional circumstances which could have justified the grant of an extension of term.

6. The Rio JV has already had an adequate opportunity to explore and develop the land the subject of the Application and, in accordance with the objectives of the Mining Act 1978 (WA), another party should now be given the opportunity.

The company has been advised that the Warden will hand down reasons for his decision on or before 5 October 2006.