Blackham, along with fellow junior Jindalee Resources, lodged applications over Scadden West after Wesfarmers allowed the tenements covering the project to lapse.

 

However, Wesfarmers says the licences expired due to an administrative oversight, and has applied to have the licences returned.

 

Blackham today said it objected to Wesfarmers’ applications due to the fact both Blackham and Jindalee had lodged their applications over the ground before Wesfarmers.

 

In addition, Blackham said Wesfarmers had repeatedly failed to meet its minimum expenditure obligations during the 27 years it held the ground, as well as insufficiently exploring or exploiting the land.

 

The proceedings will cover both Blackham’s objections to Wesfarmers’ applications over Scadden, as well as an ‘application for forfeiture over the Scadden West project on the grounds of Weesfarmers’ failure to meet expenditure obligations.

 

Blackham said that in the 12 months to 31 March this year, Wesfarmers had spent just $34,407 on the Scadden West leases, well short of the $235,400 it was required to spend. Excluding the annual rents of the leases, Wesfarmers’ expenditure over the three licences came in at $2817. Wesfarmers has applied for an exemption from the minimum expenditure conditions.

 

Blackham managing director Bryan Dixon said the company had appointed DLA Phillis Fox to act on its behalf for the hearings.

 

“The two most important pillars of the WA Mining Act are ‘use it or lose it’ and ‘first in time’,” Dixon said.

 

“The industry has prospered for many years based on these underlying fundamentals and we look forward to this continuing. Any deviation could have dramatic effects on the investing public’s confidence in the WA system.”

 

Scadden sits in the south-west of WA, about 60 kilometres north of Esperance.

 

The situation is reminiscent of Cazaly Resources’ ongoing feud with Rio Tinto over the Shovelanna iron ore deposit in WA’s Pilbara.

 

Cazaly pegged the deposit after Shovelanna mistakenly allowed the lease to expire. Cazaly also pointed to Rio’s low expenditure over the project, but Shovelanna was handed back to Rio by then resources minister John Bowler under a little-known part of the mining act.