Aditya Birla Loses Copper Tenements, Juniors Jockey For Ground

Copper miner Aditya Birla Minerals Ltd. (ABY.AU) said Wednesday it has lost the right to eight exploration tenements in Western Australia state close to its Nifty copper mine, with three Australian junior explorers submitting applications.

Midas Resources Ltd. (MDS.AU), Giralia Resources NL (GIR.AU) and one privately held company have applied for at least five of the tenements.

In 2005, Rio Tinto Plc (RTP) nearly lost control of the prized Shovelanna iron ore tenements in Western Australia's Pilbara region when junior explorer Cazaly Resources Ltd. (CAZ.AU) snared the tenements after Rio's license expired.

Rio wrested control back from Cazaly after a WA Supreme Court decision in 2007 on the grounds of public interest.

"The ground in that area is one of the most prospective, and we hope to get it," said Geoff Balfe, managing director of Midas.

Under tenement application rules, the Western Australia Department of Mines and Petroleum will run a ballot between the three applicants.

Aditya is a unit of Indian aluminum major Hindalco Industries Ltd. (500440.BY) and acquired its Australian interests in 2004.

In a statement to the Australian Stock Exchange, Aditya said it's taking legal advice on getting the tenements back, following what it considers to be an administrative error.

-By Elisabeth Behrmann, Dow Jones Newswires;

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