Palmer Gold NQ Pty Ltd v Strathleven WAR(NQ) Pty Ltd
[2015] QLC 21
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- Unreported Judgment
- Palmer Gold NQ Pty Ltd v Strathleven WAR(NQ) Pty Ltd[2015] QLC 21
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Palmer Gold NQ Pty Ltd v Strathleven WAR(NQ) Pty Ltd[2015] QLC 21
Palmer Gold NQ Pty Ltd v Strathleven WAR(NQ) Pty Ltd[2015] QLC 21
LAND COURT OF QUEENSLAND
CITATION: | Palmer Gold NQ Pty Ltd v Strathleven WAR(NQ) Pty Ltd [2015] QLC 21 |
PARTIES: | Palmer Gold NQ Pty Ltd (applicant) v Strathleven WAR (NQ) Pty Ltd (respondent) |
FILE NO: | MRA 508-14 |
DIVISION: | General Division |
PROCEEDING: | Determination of compensation for renewal of mining lease |
DELIVERED ON: | 6 July 2015 |
DELIVERED AT: | Brisbane |
HEARD ON: | Submissions closed on 12 February 2015 |
HEARD AT: | Heard on the papers |
MEMBER: | G.J Smith, Judicial Registrar |
ORDERS: |
|
CATCHWORDS: | MINING LEASE – determination of compensation – renewal – factors to be considered – no material provided by either party. Mineral Resources Act 1989, ss 279, 279A, 281. Land Court Rules 2000, Rule 36A Unimin Australia Limited v Freeman [2007] QLC 76 Eacham Abrasive Blasting Pty Ltd v Gundersen & Anor [2014] QLC 38 Oosen v Emu Creek Bar-Barrum Aboriginal Corporation (2008) QLC 23 Re Fitzgerald & Anor (2009) QLC 15 Re Fitzgerald and Hughes (2009) QLC 73 Re Kimmoth & Poole (2009) QLC 117 Palmer Gold NQ Pty Ltd v Strathleven WAR(NQ) Pty Ltd [2014]QLC 42 |
APPEARANCES: | Not applicable |
- [1]This matter involves a referral to the Land Court pursuant to s 279A of the Mineral Resources Act 1989 (MRA) for the determination of compensation in respect of the renewal of a mining lease.
Background
- [2]On 4 July 2012, Palmer Gold NQ Pty Ltd (the miner) applied for the renewal of Mining Lease 7220 over land located approximately 113 km south-west of Laura in the Mareeba District. The land is within the Cook Shire local government area. Further renewal is sought for a period of 10 years. The purpose of the proposed renewal is for the mining of Heavy Mineral Sand together with gold, tin, garnet, and zircon.
- [3]Access to the mining lease area is over an 18 km track across land owned by Strathleven WAR (NQ) Pty Ltd (the respondent). The land is more particularly described as Lot 434 on SP136214. Mapping data supplied by the Department of Natural Resources and Mines (DNRM) indicates that approximately 25 ha of ML 7220 is located within Lot 434 on SP136214.
Relevant Legislation
- [4]Section 279 of the MRA provides that a mining lease shall not be granted or renewed unless an agreement in relation to compensation has been filed or, in the absence of such an agreement, a determination of compensation has been made by the Land Court. In this matter, no agreement has been lodged with the Department of Natural Resources and Mines (DNRM) and the matter has been referred to the Land Court for determination.
- [5]Section 281 of the MRA identifies the matters which must be considered by the Court in determining the compensation. In particular, s 281(3)(a) provides that an owner of land is entitled to compensation for:
- (i)deprivation of possession of the surface of land of the owner;
- (ii)diminution of the value of the land of the owner or any improvements thereon;
- (iii)diminution of the use made or which may be made of the land of the owner or any improvements thereon;
- (iv)severance of any part of the land from other parts thereof or from other land of the owner;
- (v)any surface rights of access;
- (vi)all loss or expense that arises;
as a consequence of the grant or renewal of the mining lease.
- [6]Section 281(4) enables various additional factors to be included in the compensation determination. In the present case, only paragraph (e) is relevant. It provides as follows:
- “(4)In assessing the amount of compensation payable under subsection (3) -
….
- (e)an additional amount shall be determined to reflect the compulsory nature of action taken under this part which amount … shall be not less than 10% of the aggregate amount determined under subsection (3).”
The Conduct of the Proceedings and Evidence
- [7]On 4 December 2014, the Land Court registry wrote to the parties setting out a timetable for the delivery of materials and submissions in accordance with Land Court Practice Direction No 5 of 2013. Neither party responded or submitted any material to the Court.
- [8]In the absence of any material from the parties, the determination of compensation can be challenging. In Unimin Australia Limited v Freeman,[1] Member Jones [as he then was] noted as follows:
“I realise that my determination of compensation in this case is the result of little more than calculated guesswork or speculation. However, in circumstances where the parties have elected to provide little or no material to the Court concerning their position about compensation there is not much more that the Court can do.”
- [9]Despite this, several Court judgments from the North Queensland area provide guidance with the determination of compensation in the present case. These determinations from the Mareeba District range from $5 per hectare per year to $15 per hectare per year[2]. In the recent case of Eacham Abrasive Blasting Pty Ltd v Gundersen & Anor[3], Member Smith allowed the sum of $10 per hectare per year for the area covered by mining and $5 per hectare per year for access in respect of a renewal of a mining lease in the Mareeba District. A similar determination was also made by Member Smith in an earlier judgment involving the present parties[4].
Determination
- [10]After considering the limited material and the relevant Court determinations cited above, and taking into account all heads of compensation set out in s 281(3) of the MRA, I assess compensation for Mining Lease 7220 at $10 per hectare per annum in respect of the relevant mining area and $5 per kilometre per annum is respect of access. This results in a total annual amount of $250 per annum in respect of the mining area and $90 per annum in respect of access.
- [11]Applying these amounts over the term of the mining lease (i.e. 10 years) amounts to $ 3400.00 for the entire period of the lease.
- [12]Pursuant to Section 281(4)(e) of the MRA, I will add an additional sum of $340.00 to reflect the compulsory nature of the grant of the mining lease.
- [13]This results in total compensation for the entire period of the mining lease of $3740.00.
Orders
- Compensation is determined in the total sum of Three Thousand Seven Hundred and Forty dollars ($3,740.00).
- The miner is to pay compensation to the respondent in the amount set out on Order 1 hereof within three (3) months of the issue of Mining Lease 7220 by DNRM.
G.J. SMITH
JUDICIAL REGISTRAR
Footnotes
[1] [2007] QLC 76 at [14].
[2]Oosen v Emu Creek Bar-Barrum Aboriginal Corporation [2008] QLC 23; Re Fitzgerald & Anor [2009] QLC 15; Re Fitzgerald and Hughes [2009] QLC 73; Re Kimmoth & Poole [2009] QLC 117; Donovan v Struber & Anor [2009] QLC 160.
[3] [2014] QLC 38.
[4] Palmer Gold NQ Pty Ltd v Strathleven WAR(NQ) Pty Ltd [2014]QLC 42