Cazaly may take iron ore claim to Australian High Court

Wednesday, 29 August 2007 16:52:33 (GMT+3)   |  
Australia-based junior mining company Cazaly Resources Ltd has announced that it may have recourse to the Australian High Court after Rio Tinto's iron ore unit won its appeal to the Western Australian courts, an outcome which means that Rio Tinto can retain its Shovelanna deposit in the Pilbara region. Upon the court's refusal to quash the former Mines Minister's decree which gave the said area to Rio Tinto, the dream of attaining a large iron ore project has been shattered for Cazaly.

Commenting on the refusal, Cazaly said it "has instructed its lawyers to review the judgment with a view to bringing an application for special leave to appeal to the High Court of Australia".

The issue in question goes back to 2005 when Cazaly made an application for the tenement after Rio Tinto's exploration license expired.

Meanwhile, Cazaly signed an agreement with BHP Billiton Ltd to explore the mine; however, Rio Tinto appealed to the Western Australia government to invoke its power to refuse certain tenement applications based on public interest, as allowed under the state's Mining Act.


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