The West Australian Government has thrown its support behind Rio Tinto's claim to the Rhodes Ridge iron ore deposit in the Pilbara.
The validity of Rio's State Agreement is being challenged in court by the junior miner Cazaly Resources.
Cazaly is taking Rio and its partners, mining heirs Gina Rinehart, Angela Bennett and Michael Wright, to the Warden's Court saying it pegged the Rhodes Ridge tenement more than 18 months ago.
It says the tenement area came up for grabs because Rio failed to meet the terms of its State Agreement.
Cazaly's Nathan McMahon says the issue is a matter of law.
"Given the government has granted Cazaly many many iron ore tenements I'd be very disappointed if general procedure was not followed," he said.
Rio says it will fight Cazaly as it did when the company tried to snare its Shovelanna deposit.
The WA Government says it will use the all its powers to support Rio Tinto's rights to the Rhodes Ridge deposit.
In a statement the Development Minister says he understands people will pursue their own commercial interests, but stands by the State Agreement which the Government renewed in January.
Source: ABC News
No comments:
Post a Comment