Bear Hill Mining Nl v Kennedy - [2016] QLC 42

LAND COURT OF QUEENSLAND

CITATION: Bear Hill Mining NL v Kennedy [2016] QLC 42

PARTIES: Bear Hill Mining NL
(applicant)

v

Peter Robert Kennedy
(respondent)

FILE NO: MRA020-16

DIVISION: General Division

PROCEEDING: Determination of compensation payable for grant of mining lease

DELIVERED ON: 21 July 2016

DELIVERED AT: Brisbane

HEARD ON: Submission closed 18 March 2016

HEARD AT: Heard on the papers

JUDICIAL REGISTRAR: GJ Smith

ORDER:
1. In respect of ML100028 compensation is determined in an amount of $845 per annum.

2. That the applicant pay compensation to the respondent the amount set out in Order 1 within three months of the date of grant of the mining lease by Department of Natural Resources and Mines and in each subsequent year on the anniversary of the date of grant.

CATCHWORDS:

MINING LEASE – renewal – access – determination of compensation – use of Court judgments for determination purposes.

Mineral Resources Act 1989 ss 279A, 281

Alphadale Pty Ltd v Dore & Ors [2014] QLC 25
ERO Georgetown Gold Operations Pty Ltd v Henry
[2015] QLC 22
Mitchell v Oakhill and Mitchell (Unreported, Land Court of Queensland, JJ Trickett, President, 10 March 1998)
Unimin Australia Limited v Freeman [2007] QLC 0076
Wills v Minerva Coal Pty Ltd [No.2] (1998) 19 QLCR 297

APPEARANCES:
Not applicable

This matter involves a referral to the Land Court pursuant to s 279 (5) of the Mineral Resources Act 1989 (MRA) for the determination of compensation in respect of the grant of mining lease ML 100028.

Background

The applicant, Bear Hill Mining NL (the applicant) applied for the grant of ML 100028 on 18 March 2015. The land upon which the proposed mining lease is located is approximately 13 km south-east of Croydon in the Georgetown district and within the Croydon Shire Council local government area. The purpose of the proposed grant is for the mining of Gold, Silver and Tin.
The proposed mining lease will be situated on land owned by Peter Robert Kennedy (the respondent). The land is more particularly described as Lot 2 on SP 117603, has an area of approximately 23,300 hectares and is used for grazing purposes.
The specific Land Court reference and tenure details are set out as follows:

Court Reference Tenure ID Tenure Area Purpose Access Term

MRA020-16 ML 100028 48.14 ha Gold/Silver/Tin 3.4 ha 5 years

Relevant Legislation

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.
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…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Bear Hill Mining Nl v Kennedy

Details

AGLC: Bear Hill Mining Nl v Kennedy [2016] QLC 42
Case: [2016] QLC 42
Decision Date: 21 July 2016

CaseChat Overview and Summary

Bear Hill Mining Nl (Applicant) sought a determination of compensation in relation to the renewal of a mining lease over land owned by Kennedy (Respondent). The dispute came before the Queensland Resources and Mines Court. The Applicant argued that the compensation for the renewal of the mining lease should be determined based on the use of past court judgments, while the Respondent contested this approach and submitted alternative calculations.

The court needed to determine the appropriate method for calculating compensation for the renewal of the mining lease. Specifically, the court had to consider whether the Applicant's proposed method of using past court judgments was appropriate, or whether the Respondent's alternative calculations were more suitable. The court also had to consider the statutory provisions governing the determination of compensation for mining lease renewals.

The court found that the Applicant's approach of using past court judgments was an appropriate method for determining compensation for the renewal of the mining lease. The court noted that the use of such judgments provided a consistent and transparent basis for determining compensation, and that it was consistent with the statutory provisions governing the determination of compensation. The court rejected the Respondent's alternative calculations as not being as transparent or consistent as the approach proposed by the Applicant. The court determined that the compensation for the renewal of the mining lease should be $845 per annum.

The court ordered that the Applicant pay compensation to the Respondent in the amount of $845 per annum, with payment to be made within three months of the grant of the mining lease by the Department of Natural Resources and Mines, and in each subsequent year on the anniversary of the date of grant.

Orders

Orders of the court

1. In respect of ML100028 compensation is determined in an amount of $845 per annum.

2. That the applicant pay compensation to the respondent the amount set out in Order 1 within three months of the date of grant of the mining lease by Department of Natural Resources and Mines and in each subsequent year on the anniversary of the date of grant.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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Court Reference	Tenure ID	Tenure Area	Purpose	Access	Term
MRA020-16	ML 100028	48.14 ha	Gold/Silver/Tin	3.4 ha	5 years