Commonwealth v Hazeldell Limited

The Privy Council was asked to determine whether the Commonwealth was entitled to compensation for the value of limestone under the land it acquired. The case arose from the Commonwealth's compulsory acquisition of land under the Lands Acquisition Act 1906 for the purpose of obtaining material for use in connection with buildings to be erected for the Commonwealth. The land contained a valuable bed of limestone, and the respondents claimed compensation for its value. The Commonwealth argued that the reservation of minerals in the Crown grant did not include limestone and that the Mining Act 1906 rendered the limestone open to mining by the public, making it of no value to the grantee. The primary issues before the Privy Council were whether the reservation of minerals in the Crown grant included limestone and whether the Mining Act 1906 rendered the limestone open to public mining.

The Privy Council held that the reservation of minerals in the Crown grant should be construed in accordance with the definition of "minerals" in the Crown Lands Act 1884, which did not include limestone. Consequently, the limestone was not reserved by the grant and passed to the grantee. Furthermore, the Privy Council found that the Mining Act 1906 did not apply to minerals not reserved by a grant. Therefore, the limestone was not rendered open to public mining by the Act, and the respondents were entitled to compensation for its value.

In light of the Privy Council's decision, the appeal by the Commonwealth was dismissed, and the respondents were entitled to compensation for the value of the limestone under the land. The Privy Council also ordered that the Commonwealth should pay the respondents' costs of the appeal, including those caused by the intervention. The Attorney-General for New South Wales, who intervened and supported the appellants' contention, would bear his own costs.