The head of Cazaly Resources Ltd has conceded that the Western Australian government could crush its plans to elbow Rio Tinto Ltd off a massive iron ore resource in the Pilbara.
But Cazaly managing director Nathan McMahon said it would be "a disgrace" if the WA minister for resources, Francis Logan, intervened if the courts ruled in Cazaly's favour.
"I don't see why a minister would over-rule an open judiciary hearing on the basis of a piece of ground that should have been developed decades ago," Mr McMahon told ABC television.
Cazaly is challenging Rio Tinto, Hancock Prospecting Pty Ltd, Hamersley Resources Ltd and Wright Prospecting Pty Ltd over the right to mine tenements at Rhodes Ridge.
The junior miner, which will team up with Fortescue Metals Ltd to mine the resource if it wins, claims the tenements rights of occupancy have not been validly renewed.
"The state of Western Australia has got nothing out of Rhodes Ridge for 32 years," Mr McMahon said.
"And I don't see why any minister would want to support people sitting on the ground even if they haven't complied with the basic requirements under the state agreement."
Cazaly will battle it out with Rio Tinto at a hearing with the Department of Industry and Resources' Mining Warden on a date to be set.
It will be the second time Cazaly has gone toe-to-two with the Anglo-Australian mining giant after it recently lost a three year bid to take control of the Shovelanna iron ore deposit, also in the Pilbara, after claiming Rio Tinto had missed a deadline to renew its licence.
At Shovelanna, the former WA resources minister John Bowler intervened in Rio Tinto's favour.
But Mr McMahon said Shovelanna and Rhodes Ridge were "two totally different scenarios", adding that the former minister had made an "awful precedent" at Shovelanna.
"Rhodes Ridge will be decided in the Wardens Court," he said.
"It won't be decided by one person in a closed format."
Containing two billion tonnes of high grade iron ore, Rhodes Ridge contains one of the biggest untapped resources in WA.
If Cazaly is successful, the tenements will be transferred to Fortescue, which will fund, develop and operate mining operations, paying royalties to Cazaly.
Mr McMahon said Cazaly would be left with a "rather robust" royalty stream to a maximum of $1.65 billion.
The spat will pit Australia's richest man, Fortescue chief executive Andrew Forrest, against Australia's richest woman, Hancock Prospecting's Gina Rinehart.
Rio Tinto last week rejected claims that it had no right to Rhodes Ridge, saying the land was critical to its plans to boost production of iron ore to meet booming global demand.
