Cockatoo Island is just 31sqkm, about the size of the township of Leonora, but the iron ore potential is worth billions of dollars, even at current commodity prices, given its grade.

A significant battle in relation to the aerodrome, or airstrip, of all things, at Cockatoo Island played out in the WA Wardens Court before newly appointed Warden Thomas McPhee.

The matter is McPhee's first substantive hearing and could be described as a ‘daggers at fifty paces' lawsuit.

It was some time ago that ASX-listed Pearl Gull Iron acquired a mining lease on Cockatoo Island.

In fact, the island has been mined for iron ore since the 1950s. From 1951 to 2012 more than 45 million tonnes of ultra-high grade, low impurity direct shipping ore was mined and exported. 

However, mining has been intermittent with BHP having a red-hot go over several years, while ASX-listed Pluton Resources collapsed (along with commodity prices) in 2015. 

Earlier still, iron ore from the island was used as ship ballasts in the 1880s.

As the island is small, narrow, and fairly mountainous, only one airstrip exists. By length, it takes up about a quarter of the island.

Pearl Gull's mining lease was granted well after the building of the airstrip, which is on Crown land, and the lease contains a condition that mining operations must not interfere with the use of the airstrip.

Put simply, there is a condition within Pearl Gull's mining lease which requires the company not to interfere with the use of the airfield.

The airstrip has been used in the past by tourism and other businesses on the island.

But that did not stop Pearl Gull from trying to cut out other iron ore miners on the island from using the airstrip. 

A Chinese-backed entity called Cockatoo Island Mining (CIM) has also been seeking to restart mining operations on cockatoo island.

Pearl Gull took the position that it had the right to complete entitlement across the landing strip, saying it was the sole operator of the facility, by virtue of its mining lease.

Until Pearl Gull made this claim, it was understood, by all, that the aerodrome was available to all visiting, living, or resorting on the island. Including tourism businesses which rely on the airstrip.

CIM responded to Pearl Gull's assertion that it controlled the aerodrome with an application for a miscellaneous licence, arguing it should also be allowed to use the landing strip.

Pearl Gull then objected to the grant of the miscellaneous licence and the dispute ended up in court.

What should have been a straight-forward application ended up as a battle of control over the aerodrome, and thus, the effective control of the billions of dollars' worth of resources the island holds.

Afterall, if you have no airstrip to an island on which you hold a tenement, the practical difficulties are obvious.

It raises a question, as to whether Pearl Gull is simply looking to force CIM out of its asset. 

Members of the mining community, speaking to Australia's Mining Monthly watching the progress of the case, have observed that Pearl Gull, by its opposition, has placed itself in an all or nothing position concerning the airstrip.

Opposing the application will mean a judgment as to what Pearl Gull's rights actually are. Had the application not been opposed, CIM may have obtained limited rights to use the airstrip, but, CIM would have continued to control the airstrip generally.

CIM pulled out the stops with heavyweight barrister Stephen Davies, Senior Counsel, leading mining veteran Gary Lawton, while Pearl Gull was represented by Joseph Garas, also an SC. Neither party's solicitors were available for comment. 

At the hearing just days before Christmas eve, Garas told the Wardens Court he believed Pearl Gull could still win the case, despite the fact the company was granted the lease under the condition it could not interfere with the use the airstrip/aerodrome.

The Warden/Judge reserved his decision and AMM understands the parties are waiting for the results with bated breath.

If the judgment is in Pearl Gull's favour, CIM will need to apply for a new landing strip or aerodrome or sell out to Pearl Gull. If not, CIM could proceed with its original plans of developing its own mine.