cazaly seeks judicial review

ASX Release
24th April 2006
SHOVELANNA LICENCE:
CAZALY SEEKS JUDICIAL REVIEW
AND REASONS FOR DECISION
Cazaly Resources Ltd (ASX: CAZ) intends to submit an application for judicial review of the
decision made by the Honourable John Bowler, Minister for Resources and Assisting the Minister
for State Development, to terminate application E46/678 (the Shovelanna licence) in the Supreme
Court of Western Australia.
The Company has retained leading Queens Counsel Malcolm McCusker and Gadens Lawyers to
advise and represent it.
Cazaly is also lodging Freedom of Information (FOI) applications for;
a) Legal advice from the States Solicitors Office to the Minister and the Department of
Industry and Resources;
b) The Department of Industry and Resources’ submission to the Minister;
c) The ”Statement of Principles” prepared by Rio Tinto summarising its discussions
with the State Government in relation to royalty issues and referred to in its Section
111A application to the Minister;
None of these documents have been provided to Cazaly despite Cazaly’s previous request to do
so. Once Cazaly has received these documents it will finalise its grounds for judicial review and
submit its application. Receipt of these documents will also allow Cazaly’s legal team to assess if
the Minister has based his decision on erroneous advice.
The Company has also written to the Minister requesting a full written explanation for his reasons
for his decision. A copy of Cazaly’s letter to the Minister is attached.
The Company has also requested that the process of other applications covering the Shovelanna
area be put on hold whilst the judicial review process is undertaken.
It is the Company’s and its joint venture partner’s, Echelon Resources Ltd. (ASX: ECH), view that
it is imperative the Minister provide a full explanation of his decision as it relates to “the Public
Interest”. The Company has been inundated by both shareholders and others who are confused
and angry by this decision. It is particularly important the industry be made aware of the rationale
behind the decision so that it can make fully informed investment decisions in an environment
which is totally transparent.
In Cazaly’s view, the Minister’s decision is damaging to investor confidence in Western Australia.
A failure to provide a full explanation of the decision would create further damage to investor
confidence in WA because of a lack of transparency in government decision making.
Yours Sincerely,
Nathan McMahon
Clive Jones
Joint Managing Directors
24th April 2006
The Honourable John Bowler, JP MLA,
Minister for Resources and Assisting the Minister for State Development, Employment Protection;
Goldfields-Esperance and Great Southern
19th Floor, Governor Stirling Tower, 197 St Georges Terrace
PERTH, WA, 6000
Dear Minister,
Re: Termination of Shovelanna Licence Application E46/678
We refer to your facsimile of 21st April 2006.
Cazaly Iron Pty.Ltd. (“Cazaly”) intends to bring an application in the Supreme Court of Western
Australia for judicial review of your decision to terminate Application E46/678.
We would therefore be grateful if you would confirm that you will;
a) Provide full written reasons for your decision to terminate Cazaly’s application
E46/678;
b) Refrain from considering or making any decision in relation to any of the other
following applications; E46/680, E46/682, M46/437, M46/438, M46/439 and
M46/440.
Given that the decision to terminate application E46/678 is asserted to have been made “on
reasonable grounds in the public interest…” we believe that it is imperative that Cazaly, the
Western Australian mining industry and the public at large be given a full explanation of your
decision.
This is particularly important for the mining industry in making future applications and investment
decisions within the State of Western Australia.
Any perceived lack of transparency would be particularly damaging to investor confidence in WA.
We look forward to your reply.
Yours Sincerely,
Nathan McMahon
Clive Jones
Joint Managing Directors
cc: The Honourable Alan J. Carpenter, MLA,
Premier of Western Australia, Minister for State Development and Federal Affairs
24th Floor, Governor Stirling Tower, 197 St Georges Terrace, PERTH WA 6000