your homework for the weekend

This has to do with the CAZ claim for the RIO/Wright Rhodes Ridge prospect.The land is recognised as containing one of the largest undeveloped iron ore resources in Western Australia estimated to contain 3 billion tonnes of ore with an average grade of 60 per cent.

CAZ was taking Rio/Wright to the Court of Appeal claiming that Rio had warehoused the land for 35 years. CAZ's assertion was that it was a case of use or lose it.

FMG agreed to pick up all legal costs and if CAZ won the case the lease would be transferred to FMG for an upfront and an ongoing royalty.

Why then did this appear in the December Quarterly Report:
Cazaly Iron Pty Ltd has agreed, in principle, to settle its Court of Appeal proceedings ......in relation to whether the Rhodes Ridge Joint Venturers held valid and subsisting rights of occupancy, in respect of land the subject of exploration licence applications brought by Cazaly.
By the terms of the Deed, the parties agreed to discontinue both Court of Appeal proceedings, with no order as to costs.

Note this is a summary of the report, so go take a look.

CAZ had nothing to lose by continuing with the case but everything to gain. If Rio/Wright lost the consequences would have been dramatic.

So, did Rio to do a deal with CAZ-we will give you ????? if you drop the case.

If so, it would have to be substantial for CAZ to walk away from potentially 3 billion tonnes at 60%.

Could it be the 38ha site of Rio's Kwinana Hismelt plant that Rio is going to vacate by 2014?
(http://www.hismelt.com/EN/Documents/EnvironmentReport/HIsmelt%20Environmental%20Management%20Plan.pdf)

Maybe there have been negotiations going on regarding this site and that is the reason for the delay in announcing port allocation.

Also, take a look at the volume last Friday-maybe someone jumped the gun.

Thoughts/comments welcome.