CAZ – Cazaly Resources Limited
RIO’s appeal centers around minister discretionary powers based on ‘public interest’ (s111)
As far as the public has been made aware RIO’s arguement claims they had intent to renew the lease and it was a courier company that made the mistake and RIO should not be punished for that.. To be overly simplistic sympathy for RIO is not a ‘public interest’ arguement.. From my (limited) understanding to return it to RIO under s111 would be a monumentuous stretch of those powers…
points of interest
* CAZ has demonstrated thier determination and ability to bring the resource into production…
* CAZ has signed a mou with BHP to sell the ore at the mine gate or alternatively mine the two resource together as they are adjoining.. The practically of this is staggering as it would be very unlikely that shovelanna would be mined by RIO, it would more likely be traded for with BHP for some other ground or arrangement.. its only of strategic value to RIO…. This is simply not public interest…
* RIO has let the tennent lapse before, theyv’e also had other lapses recently which didn’t result in another shovelanna situation.. If i recall a few months back RIO was advertising for a WA tennent managers position..
*RIO applied for exemption of required expenditure 11 out of 16 years of holding the tenement… Apparently Thier is a strong “use it or lose” principle in regards to locking up valueable resrouces
*It wasn’t a midnight pegging as such thier was a whole 4 days the lease was vacant.. CAZ have done nothing wrong they pegged vacant land.. They legally hold the land..
People argueing for RIO continually point to the amount of revenue RIO generate for the government .. they assert that RIO’s size and power will ultimately have the minister return shovelanna to RIO.. I’m hanging onto my caz over the decision and an believing the minister will have integrity in his decision making…
A loss for RIO will be more of an embarassment and will have little or no effect on the share price.. CAZ on the other hand will plummet.. Last week RIO made an announcement about the significant cost of letting other companies use thier rail infastructure… Have no idea how that will pan out but heres a chance to at least ensure one more company can exist outside of the RIO/BHP duopoly..
I’m obviously biased here but i feel if most of the public knew all the details they would be barracking for the underdog to come out on top..
Lets see what tuesday brings…
Disclaimer: the above is to the best of my knowledge important information was bound to of been left out.. any assertions made should be verified with ones own research.. seek professional advice
