Cazaly Resources Ltd has told its annual general meeting that its controversial legal moves were simply an attempt to gain some transparency regarding the decision to terminate its application for the Shovelanna iron ore tenement.
Cazaly Resources Ltd has told its annual general meeting that its controversial legal moves were simply an attempt to gain some transparency regarding the decision to terminate its application for the Shovelanna iron ore tenement.
Cazaly managing director Nathan McMahon told shareholders at the company's AGM that the recent issuing of subpoenas to premier Alan Carpenter and resources minister John Bowler to give evidence in the WA Supreme Court next March would provide them with an opportunity to be transparent.
"These people are the decision makers and they were involved in the process and it very important that they have that opportunity," said Mr McMahon.
On the 22 November, Cazaly served subpoenas on Mr Carpenter and Mr Bowler having already subpoenaed Rio Tinto executive director Leigh Clifford and Rio Tinto's chief executive of its iron ore division Sam Walsh.
It is understood Cazaly wants Mr Carpenter questioned about his meeting, as the then resource minister, with Mr Clifford in Rio Tinto's London headquarters last December prior to the decision to terminate Cazaly's Shovelanna application.
Cazaly said that unless the subpoenas are set aside, the persons served will be required to appear as witnesses and give evidence in the Supreme Court in March.
Mr McMahon declined to comment on any further subpoenas.
The company is currently awaiting a decision over its ability to access various documents including the "statement of principles" which Cazaly understands summarise negotiations which occurred in late 2005 between Rio Tinto and Mr Carpenter.
Other documents Cazaly have sought access to relate to the meeting between Mr Clifford and Mr Carpenter in October 2005 and documents Mr Bowler considered in making his decision under section 111A.
The company believes it was denied procedural fairness because the documents weren't disclosed to them and that they weren't given an opportunity to make submissions about the significance of the content.
In August 2005, Cazaly lodged an exploration licence for Shovelanna after Rio Tinto failed to renew the exploration licence.
But the tenement was nonetheless handed back to Rio Tinto by Mr Bowler in April after he claimed it was not in the public interest for Cazaly to keep the tenement.
Mr McMahon said today that there had been no drilling by Rio Tinto on the Shovelanna tenement since 1986.
"Rio Tinto have had the tenement for 20 years and haven't done much," said Mr McMahon. "I don't see that they have shown their bona fides to develop this project."
Mr McMahon said the Shovelanna tenement should not just be seen as a strategic asset but as a site to be developed.
"We have shown that we have the intention to go and mine the area," he said.
Shares in Cazaly closed today at 59.5 cents.
