Perth junior Cazaly back in fight for Rio deposit
Matt Chambers From: The Australian February 10, 2010 12:00AM
ANDREW Forrest's Fortescue Metals Group and Perth junior Cazaly Resources are renewing an audacious attempt to wrest control of one of the country's biggest iron ore deposits from owners Rio Tinto and Gina Rinehart.
In September last year, the Perth mining warden's court ruled Cazaly did not have the right to peg Rhodes Ridge, a deposit that could contain about three billion tonnes of iron ore.
Yesterday, Cazaly said it would continue to try to wrest control of the deposit from the iron ore giant. "The Supreme Court today held that Cazaly has an arguable case and that the matter should proceed to a substantive hearing before the Court of Appeal," Cazaly said.
Under a 2008 agreement with Fortescue, Cazaly's legal costs will be covered by the iron ore miner. In return, Cazaly has agreed to hand the land to Fortescue for between $20 million and $120m if it can grab control. Cazaly will also receive a $1 royalty for every tonne of iron ore produced.
Yesterday, Cazaly managing director Nathan McMahon would not go into details of the appeal. "We're just contending the ground is open for us to peg," he said.
He said there was no indication of when a date for the appeal would be set.
Cazaly has previously argued that Rio and its joint venture partners, Mrs Rinehart's Hancock Prospecting and Wright Prospecting, had not done enough work on the land to keep it under the state's "use it or lose it" mining laws. A Rio spokesman said the company had not been surprised at the court's decision, but would not comment further.
Rhodes Ridge is not the first deposit Mr McMahon has tried to take off Rio. In 2006, then West Australian mining minister John Bowler knocked back Cazaly's right to peg the Shovelanna deposit after a mix-up with a courier had delayed Rio's renewal.
Cazaly shares did not move much on the announcement yesterday, ending up 1c at 39c.
Rhodes Ridge was discovered in the 1950s by Mrs Rinehart's father, Lang Hancock, and his business partner, Peter Wright.
Rio owns 50 per cent, while Hancock Prospecting and Wright Prospecting own 25 per cent. Cazaly is not the first group to contest claims over Rhodes Ridge. Hancock Prospecting and Wright Prospecting have also butted heads in court over ownership.
Matt Chambers From: The Australian February 10, 2010 12:00AM
ANDREW Forrest's Fortescue Metals Group and Perth junior Cazaly Resources are renewing an audacious attempt to wrest control of one of the country's biggest iron ore deposits from owners Rio Tinto and Gina Rinehart.
In September last year, the Perth mining warden's court ruled Cazaly did not have the right to peg Rhodes Ridge, a deposit that could contain about three billion tonnes of iron ore.
Yesterday, Cazaly said it would continue to try to wrest control of the deposit from the iron ore giant. "The Supreme Court today held that Cazaly has an arguable case and that the matter should proceed to a substantive hearing before the Court of Appeal," Cazaly said.
Under a 2008 agreement with Fortescue, Cazaly's legal costs will be covered by the iron ore miner. In return, Cazaly has agreed to hand the land to Fortescue for between $20 million and $120m if it can grab control. Cazaly will also receive a $1 royalty for every tonne of iron ore produced.
Yesterday, Cazaly managing director Nathan McMahon would not go into details of the appeal. "We're just contending the ground is open for us to peg," he said.
He said there was no indication of when a date for the appeal would be set.
Cazaly has previously argued that Rio and its joint venture partners, Mrs Rinehart's Hancock Prospecting and Wright Prospecting, had not done enough work on the land to keep it under the state's "use it or lose it" mining laws. A Rio spokesman said the company had not been surprised at the court's decision, but would not comment further.
Rhodes Ridge is not the first deposit Mr McMahon has tried to take off Rio. In 2006, then West Australian mining minister John Bowler knocked back Cazaly's right to peg the Shovelanna deposit after a mix-up with a courier had delayed Rio's renewal.
Cazaly shares did not move much on the announcement yesterday, ending up 1c at 39c.
Rhodes Ridge was discovered in the 1950s by Mrs Rinehart's father, Lang Hancock, and his business partner, Peter Wright.
Rio owns 50 per cent, while Hancock Prospecting and Wright Prospecting own 25 per cent. Cazaly is not the first group to contest claims over Rhodes Ridge. Hancock Prospecting and Wright Prospecting have also butted heads in court over ownership.