Cazaly Iron Pty Ltd v Minister for Resources & Ors

Cazaly Iron Pty Ltd (Cazaly) sought judicial review of a decision by the Minister for Resources (the Minister) to grant an exploration licence to another company, Fortescue Metals Group Ltd (Fortescue). Cazaly contended that the Minister had failed to consider relevant considerations and had taken into account irrelevant considerations when making the decision. The matter came before the High Court of Australia.

The central legal issue before the High Court was whether the Minister, in granting the exploration licence to Fortescue, had acted unlawfully by failing to consider the potential impact of the grant on Cazaly's existing mining operations and its future development plans. Cazaly argued that the Minister had a duty to consider these impacts, as they were relevant to the public interest and the proper administration of the relevant legislation.

The High Court held that the Minister's decision-making process was flawed. Their Honours found that the Minister had failed to adequately consider the potential adverse effects of the proposed exploration licence on Cazaly's established mining operations and its future development prospects. The Court emphasised that a decision-maker under the relevant legislation must consider all relevant considerations, including the impact on existing lawful activities, and that the Minister's failure to do so rendered the decision unlawful. The Court also noted that the Minister had taken into account irrelevant considerations, such as the perceived commercial advantages of granting the licence to Fortescue without proper regard for the consequences for Cazaly.

The High Court ordered that the Minister's decision to grant the exploration licence to Fortescue be quashed.