Ausmex Resources Pty Ltd v Daniels

LAND COURT OF QUEENSLAND

CITATION:

Ausmex Resources Pty Ltd v Daniels & Ors [2021] QLC 18

PARTIES:

Ausmex Resources Pty Ltd
(applicant)

v

Andrew William Jesse Daniels, Samuel Donald James Daniels, Gabrielle Kennedy, Jeffrey Robert James Daniels, Luke William Jesse Daniels
(respondents)

FILE NO:

MRA149-20

PROCEEDING:

Determination of compensation payable for grant of mining lease

DELIVERED ON:

13 May 2021

DELIVERED AT:

Brisbane

HEARD ON:

Submissions closed 1 April 2021

HEARD AT:

On the papers

MEMBER:

PG Stilgoe OAM

ORDERS:

I determine:

compensation for diminution in the value of the land in the sum of Eleven Thousand, Five Hundred and Ninety-Eight Dollars and Fifty-Eight Cents ($11,598.58);1.    

compensation for diminution of the use of the land in the sum of Eleven Thousand, Five Hundred and Ninety-Nine Dollars ($11,599); and 2.    

compensation of an additional 10% to reflect the compulsory nature of the Golden Mile MLA,3.    

within 14 days of the grant of the MLA.

I order:

Any submissions seeking a costs order in this proceeding must be filed and served within 14 days of the publication of these reasons.4.    

CATCHWORDS:

ENERGY AND RESOURCES – MINERALS – MINING FOR MINERALS – COMPENSATION – where the applicant owned a mining lease situated on the land of the respondents – whether and, if so, what compensation was payable under s 281 of the Mineral Resources Act 1989

Mineral Resources Act 1989 s 281

Agnew & Ors v DWAJ Pty Ltd [2020] QLC 14, cited
Washington v Skelton [2021] QLC 11, cited

APPEARANCES:

Not applicable

1. Since May 2017, Ausmex Resources Pty Ltd has been exploring for gold in an area about 40 km south east of Cloncurry. This area has historic mining operations and has been subject to mining exploration for at least 50 years.[1]

   [1]Additional Information Document to Support Variation Application for a New Environmental Authority for a Resource Activity for the Golden Mile Mining Lease Application, 7 November 2018, 5. This document is contained in the Applicant’s Further Supporting Material, 27 July 2020. 

1. Ausmex has now applied for a mining lease, ML100201 (the Golden Mile MLA), for a term of 10 years. It proposes to extract gold/copper concentrates through underground cut and fill, with a simple gravity separator onsite and offsite processing at Cloncurry. The area of the Golden Mile MLA and the access to it is 130 ha. Ausmex says there will be minimal surface disturbance as most of the mining will be underground.[2]

   [2]Ibid 3.

1. The Golden Mile MLA sits on land held by the respondents under rolling term leases.

1. The parties cannot agree what compensation is payable for the Golden Mile MLA, so the task falls to me pursuant to s 281(3) of the Mineral Resources Act 1989 (MRA).

1. The respondents want $250,127 compensation made up as follows:

Deprivation of possession of the surface of the land	$58,913
Diminution of the value of the land	$69,592
Diminution of the use made, or which may be made, of the land	$98,883
$227,388
Statutory 10%	$22,739
Total