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Shovelanna not discussed by Clifford and Carpenter: Judge
15-March-07 by AAP


No evidence exists that Western Australian Premier Alan Carpenter and Rio Tinto executive director Leigh Clifford discussed the Shovelanna iron ore tenement before it was handed back to the major miner, the Supreme Court of WA decided today.

Supreme Court judge Michael Buss today said there was no evidence that the two discussed the Shovelanna iron ore tenement in their London meeting in December 2005.

Junior explorer Cazaly Resources Ltd snared Shovelanna in August 2005 after Rio let its licence expire, but the tenement was handed back to Rio after the then resources minister John Bowler used his discretion under the Mining Act.

"In my opinion, it is not reasonably arguable that any matters were discussed between the Honorable Mr Carpenter and Mr Clifford at the meeting which were credible, relevant or significant to the first respondent's (Mr Bowler) decision," Justice Buss said.

It is understood Cazaly wanted to question the premier about meeting Mr Leigh Clifford in London last December.

Justice Buss today handed down his reasons why he refused Cazaly Resources Ltd to call key witnesses, including Mr Carpenter, Mr Clifford and Mr Bowler.

"I was not satisfied that there is any proper basis for granting the applicant leave to adduce oral evidence from the Hon. Mr Carpenter ... or Mr Clifford," Justice Buss said.

"It is Mr Bowler's knowledge (if any), and not the source of his knowledge, that is relevant."

Mr Bowler has been ordered to file an affidavit addressing the matters that Cazaly wishes to hear evidence about - which has been received by Cazaly's lawyers.

The court also dismissed an application by Cazaly to change the confidential order to allow joint managing directors Nathan McMahon and Clive Jones to view confidential documents.

The Court of Appeal ruled previously that only Cazaly's lawyers were allowed to view the documents, after Rio Tinto argued they contained commercially sensitive information.

"If Mr McMahon and Mr Clive Jones were permitted to inspect the documents in question, the information which they would derive from them would not be forgotten and, as a result the confidentiality of that information, is unlikely to be preserved adequately ... " Justice Buss said.

Cazaly's legal battle with Rio resumes in the Supreme Court on Monday.

By 1525 AEDT, Cazaly shares remained unchanged at 63 cents while Rio shares added 75 cents to $73.28.