this is shovelanna all over again

back to the courts for round 2??? how much pain can CAZ holders go through! LOL

Rio to fight Cazaly claim

Posted Wed Jun 18, 2008 5:28pm AEST
nathan mcmahon

Cazaly's Managing Director Nathan McMahon wants to develop the Rhodes Ridges iron ore deposit. (abc)

Rio Tinto claims iron ore minnow Cazaly Resources is trying to undermine the company's State Agreement which gives it the right to explore and carry out future mining operations of its Rhodes Ridge iron ore deposit.

Cazaly is pursuing Rio and its partners Hancock and Wright Prospecting in the Warden's Court saying documents released under a Freedom of Information search show Rio has not complied with its State Agreement and the renewal of it earlier this year isn't valid.

Rio Tinto's iron ore boss Sam Walsh claims State Agreements provide certainty and security to companies which are willing to spend millions on exploration and developing mines.

He says Rio will fight the claim as it did with Cazaly's stoush over the Shovelanna deposit, which was thrown out by the High Court two months ago.

Rhodes Ridge is estimated to have more than two billion tonnes of iron ore in the ground.

Cazaly's shares have closed up 60 per cent today to 0.52 cents.