Blackham Resources’ battle with Wesfarmers Premier Coal Ltd over the Scaddan lignite deposit further increases the industry’s uncertainty about investing in exploration in Western Australia, according to the Association of Mining and Exploration Companies.
Blackham pegged the 850 million tonne coal deposit last month after Wesfamers forgot to renew its licences. Wesfamers has objected to the Department of Industry and Resources and the case will most likely head to the WA Warden’s Court.
Blackham has hit the headlines in a similar fashion to mining minnow Cazaly Resources, which claimed the Shovelanna iron ore tenement two years ago after Rio Tinto let its lease lapse.
Cazaly is fighting the state government’s decision to hand back the Shovelanna tenement to Rio in the Supreme Court.
AMEC public affairs manager Ian Loftus said the Blackham and Cazaly cases added more uncer-tainty to doing business in WA.
“WA looks a lot dodgier than it used to be,” Mr Loftus said.
“It’s just another reason why companies will wonder if they bother investing here and instead look to South Australia, Queensland, the Northern Territory or overseas.”
Mr Loftus said the cases highlighted the differences for big and small businesses operating in the WA mining sector.
“What this does is paint a picture of two sets of rules,” he said. “There’s one set for the larger companies, particularly the iron ore players, and then there are the smaller companies that have to continually justify what they are doing.”
Cazaly and Blackham are arguing that mining companies should not be able to let tenement leases lie idle.
“Our view is that you use it or lose it,” Mr Loftus said.
