Toodyay Herald

Managing Director Alex Dorsch told the ASX that buying the land was “an important milestone and significant step for the potential development of a future mining operation”.

The farms cover a total of nearly 1000ha in the Keating Road area – about 30km west of the Toodyay townsite – where Chalice has drilled 200 holes for nickel, copper cobalt and Platinum Group Elements (PGEs).

Rarer than gold

PGEs include palladium which is 30 times rarer than gold and worth 40 per cent more.
Palladium is a key green energy ingredient in hydrogen fuel cells and solar panels.

It is also widely used in catalytic converters to cut vehicle emissions in petrol engines.
An acute shortage of the precious metal drove world prices to record highs this year and stood last month at $3100 an ounce.

Other clean energy metals found at Julimar – platinum, nickel, copper and cobalt – are also “critical metals for electric vehicles and other energy storage applications”.

Perth-based Chalice – now valued at more than $1.1 billion since its initial Julimar discovery in March – says nickel, copper, cobalt and PGEs are extremely rare.
The combination of metals discovered at Julimar is “unique for Australia”.

“The suite of metals is considered critical and, in some cases, strategically important for the transition of the energy and transport sectors from fossil fuels and internal combustion engines to renewable resources in electric, hydrogen and hybrid fuel cell vehicles,” a Chalice spokesperson said.

Mr Dorsch last month described the latest drilling results as “exceptional”, saying “it is clear that Julimar is emerging as a globally significant deposit of critical metals in Western Australia”.

He told The Herald in April that the Julimar ore body could be a “sizeable deposit of hundreds of millions of tonnes”.

The ‘Gonneville’ discovery – named after a French geologist who helped peg the original Chalice claim – extends north into the Julimar State Forest where the company is seeking State Government approval to start low-impact soil sampling.

Julimar forest

Aerial surveys suggest Julimar State Forest is at least as rich in the same rare precious metals as the Keating Road site.

A Chalice spokesperson said that because the project was at “such an early stage, we do not know how much water would be required” if mining occurs.

“Chalice appreciates how critically important water is to the region and takes its environmental responsibilities seriously,” the spokesperson said.

“Any potential mining activity in Western Australia is strictly governed by mining and environmental laws.”

The company says it expects to know by the middle of next year if a Julimar mine is economically viable.

Chalice currently has about 25-30 staff working in mainly geological and field roles at the Keating Road site.

“As our drilling advances, we are hopeful that these numbers will steadily increase with the company remaining strongly committed to supporting local businesses and the local community wherever possible,” the spokesperson said.

“The Julimar project has the potential to deliver significant jobs, skills and economic diversification to the Wheatbelt region.

“As the project advances, so will our scope to provide employment, jobs and training opportunities and to invest in positive community initiatives.

Chalice donated $5000 to this year’s Toodyay Christmas Street Party after the local chamber of commerce and industry pulled out due to pandemic uncertainty.

“We are committed to being part of the local community by supporting local events, facilities and businesses wherever possible,” Chalice said.

I’m also a member of the Toodyay family, which I’m very proud to say.

To bring traditional meaning to such an occasion, I would like to say a few words in language and then speak in English.

Kya wandjo djiba wari kwadak ngyn wakkining mooditj wirn – hello and welcome to this beautiful swimming pool.

I call on the good spirits of my ancestors to allow safe passage and enjoyment to this place.

I would like to pay deep respect to my elders both past and present.

A long time ago Aboriginal people walked this land, up and down the Avon valley, hunting, fishing, swimming and gathering food from this beautiful place we call Dudja or place of mist.

This land has significant meaning to many Aboriginal families because we don’t own the land – we belong to the land for the land is our mother.

Ballardong boodja is the traditional and ancient homeland of my people, being the true custodians and cultural keepers of the land on which we are meeting today.

That in itself should always be respected.

I thank you for listening and acknowledging my welcome to you on behalf of my people.

I leave you with this: Nitja Ballardong, boodja noonak yaakin – this is Ballardong land on which you are standing.

She was supported by Crs Paula Greenway, Brian Rayner and Mick McKeown, and opposed by Shire President Rosemary Madacsi, Deputy President Beth Ruthven and Crs Phil Hart and Susan Pearce (Cr Ben Bell absent on leave).

The 4-4 deadlock was broken when President Madacsi used her casting vote to defeat Cr Chitty’s motion 5-4.

Crs Chitty, Greenway and McKeown then used local government law to demand a special council meeting at 7pm.

Cr Chitty said she had sought “a little bit of outside advice” and that “if we don’t have an executed contract, we have left ourselves a little bit exposed as a council and an organisation”.

She said she had obtained verbal advice from “an ex-lawyer who hasn’t practised for quite some time” and WA Local Government Association Governance Manager James McGovern.

Without a contract, we leave ourselves wide open,” Cr Chitty said.

“To me that rings alarm bells – the risk is if someone hurts themselves seriously … there’s a huge risk without a contract.”

Both she and Cr Greenway said they discovered there was no signed contract with new venue manager Clublinks on the weekend of November 21 when the shire’s new $14 million recreation centre was officially opened.

‘Gobsmacked’

“I also am gobsmacked,” Cr Greenway said.

It was a “classic example” of councillors not being informed, she said.

President Madacsi asked Cr Greenway to withdraw her “subjective” comments.

Cr Greenway refused, and President Madacsi issued her with a formal caution.

Cr McKeown said the lack of a signed contract meant it was “not at all clear” who was responsible for public liability and workers compensation insurance at the site.

He said councillors had agreed to the essential terms for a contract on September 22 and the pool had been open for five weeks.

Cr McKeown asked why it had taken so long for the contract to be finalised.
“Who bears responsibility if an accident happens on that site?” Cr McKeown asked.

“If we haven’t got a contract, should those people be there?

“Should the site actually be open?”

Shire CEO Suzie Haslehurst said there was “clear legal intent” of an implied contract based on documented evidence of the essential terms.

“We have a clear letter of intent to enter into the contract,” she said.

‘Hair’s breadth’

She said the contract was within a “hair’s breadth” of being signed after “a bit of pushback” about the parties’ maintenance roles and responsibilities.

Both parties had sought legal advice.

“It’s a brand new site, and really tough to work out what’s going to be needed – that has been the major hold-up,” Ms Haslehurst said.

“The risks are actually being borne by Clublinks at the moment.

“They have in place public liability insurance and the facility itself is insured by the shire.”

Councillors voted 5-3 for Cr Chitty’s motion, seconded by Cr Greenway, that a contract be signed within eight days.

They were joined by Crs McKeown, Rayner and Pearce, and opposed by Crs Madacsi, Ruthven and Hart.

The contract was signed four working days later on Monday November 30.

The inquiry ordered no prosecutions or suspensions but made five recommendations which last month’s council meeting described as too vague for a formal response – as required by State law – without further direction and clarification.

‘Absolute powder keg’

It followed a public submission by Nunile ratepayer Frank Panizza who described nine of the inquiry’s findings as an “absolute powder keg” for suggesting that the shire should not take action to recover debts if legal costs exceeded the amount owed.

“I can’t overstate the parlous state that this puts our local government in,” Mr Panizza said.

“I just don’t think the authors even thought of that prospect, which in my view is absolutely damning of the report and its authors.”

The report recommends a governance review, councillor training, new Shire CEO Suzie Haslehurst to deliver a “comprehensive” report to the Director General of the Local Government Department on what councillors gained from training, independent CEO performance reviews and a review of the CEO’s authority to take legal action on behalf of the shire.

‘Half-arsed’

Cr Ben Bell said Ms Haslehurst’s recommended response was “awful” and “half-arsed”.

He refused to apologise when Shire Deputy President Beth Ruthven raised a point of order to object that his comment was “unnecessary”.

Shire President Rosemary Madacsi did not rule on the point of order but urged all councillors to “note we have an obligation to the community to conduct ourselves appropriately”.

“Why would anyone pay a fine if you know the legal bills are going to be higher than the fine?” Cr Bell said.

“We have had no clarification or direction from the department about how to deal with someone who doesn’t pay.

“It’s going to lead to an unsustainable council and administration with everyone saying

‘I’m going to make sure the legal bills are higher than the penalty and I know you won’t chase me’.

‘Tick and flick’

The inquiry report doesn’t address half of the concerns, and when the community sees this response it reads like ‘tick and flick’ and shows no forward path on how this council can be better,” Cr Bell said.”

New Cr Mick McKeown said Point 3 of the inquiry’s recommendations “asks the CEO to do the impossible” by delivering a “comprehensive report that demonstrates the knowledge and understanding I gained from the training”.

“I don’t know how the CEO can possibly do that,” he said.

Ms Haslehurst’s recommended response to WA Local Government Minister David Templeman was moved by Cr Susan Pearce and seconded by Cr Phil Hart.

It was defeated 6-1 with only Cr Hart in favour and Crs Therese Chitty and Paula Greenway absent on approved leave.

Cr Bell seconded Deputy President Ruthven’s alternative motion that the council defer its response to enable further discussion at a workshop before holding a special council meeting to vote on the outcome.

The motion was carried 7-0 and requires the council to finalise its response to the inquiry report by Tuesday November 17 when a 35-day statutory deadline expires.

The former council had failed to comply with local government regulations in February 2013 when it voted 8-0 – against Mr Scott’s written advice – to launch legal action over an “overpayment” of $150,000 to former Toodyay CEO Graham Merrick.

Mr Scott wrote that there was “no reasonable prospect of success” and that the shire should “not commence legal action”.

The council disregarded Mr Scott’s advice and failed to record any written reasons – as required by law – “for a decision that is significantly different from the CEO’s written recommendation”, the report said.

Mr Scott then failed a policy requirement to obtain three quotes to pursue the matter and failed to keep the council informed about mounting legal costs that eventually totalled $548,000 over four years.

‘Unethical’

He also “acted in an unethical manner by not disclosing to the council that his son is working with the legal firm that the shire has frequently engaged to provide legal services”.

The inquiry report said there was no evidence that Mr Scott had updated the council about legal costs “which would have been prudent particularly at the time that the legal costs exceeded the sum that could potentially be recovered from Mr Merrick”.

“The CEO recommended that once proceedings started, the shire not withdraw from the matter due to the shire being liable for their own legal fees and Mr Merrick’s legal fees.”

“When the CEO was questioned about his son working for Civic Legal, he stated that he had spoken with the shire president about it and the CEO didn’t consider it to be an issue.

“At no time was this conflict of interest matter documented or put to the council.”
The report said Mr Scott’s actions were not an offence under local government law “however it is unethical and not behaviour that should be expected of a CEO”.

The report also detailed several instances where Mr Scott failed in his “significant responsibilities” as a financial manager, including that he:

• “Failed to ensure the resources of the local government were effectively and efficiently managed”, and
• “Did not have adequate oversight of the day to day operations of the local government, and this failure by the CEO has caused or contributed to the potential unnecessary costs to the Shire of Toodyay.”

Misconduct

Mr Scott was also found to have breached the shire code of conduct in an email to former Cr Di Granger which prompted her shock resignation only four months after she defeated former shire president David Dow in Toodyay’s 2017 council elections.

Mr Scott was found to have breached a requirement to “avoid derogatory statements” by “failing to communicate in a professional manner which may (as a result) cause any reasonable person unwarranted offence or embarrassment”.

The report said Mr Scott’s tone in earlier emails to former Cr Granger was “condescending”.

When the council went behind closed doors in January 2018 to consider her motion about “managing the performance of the CEO” Mr Scott “proceeded to verbally berate Ms Granger in a hostile manner which she felt was highly inappropriate and was embarrassed,” the report said.

“At no point did the presiding member (former shire president Rayner) bring the CEO to order.

“There are indications the relationship between the council and the CEO was not functioning per the requirement of the LG Act, which should be one of employer and employee.

“There are sections of the community which were unhappy with the lack of transparency and accountability of the Shire of Toodyay.

Due to a lack of positive action by the council in relation to the CEO, the discontent within the community has culminated in the need for an inquiry.”

Two other remaining councillors who joined Cr Rayner last year to vote in favour of a surprise backflip to retain Mr Scott for another 12 months after a decision not to renew his contract were former shire deputy president Chitty and Cr Greenway.

Mr Scott resigned in April this year after taking two months extended sick leave for an undisclosed illness just hours before the start of the council’s February meeting.