Eacham Abrasive Blasting Pty Ltd v Gundersen & Anor

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LAND COURT OF QUEENSLAND

CITATION: Eacham Abrasive Blasting Pty Ltd v Gundersen & Anor [2014] QLC 38
PARTIES: Eacham Abrasive Blasting Pty Ltd
(applicant)
v
Grant Henrik Gundersen and Laurelle Ursula Loran Gundersen
(respondents)
FILE NO: MRA031-13
DIVISION: General Division
PROCEEDING: Determination of compensation payable for renewal of mining lease
DELIVERED ON: 28 October 2014
DELIVERED AT: Brisbane
HEARD ON: Submissions closed 19 September 2014
HEARD AT: Heard on the Papers
MEMBER: PA Smith
ORDER:

1.    Compensation is determined in the total sum of Eighty-two Dollars and Fifty Cents ($82.50).

2.    Eacham Abrasive Blasting Pty Ltd pay the total compensation of $82.50 to Grant Henrik Gundersen and Laurelle Ursula Loran Gundersen within two months of the renewal of ML 20079.

CATCHWORDS:

MINING LEASE – determination of compensation – factors to be considered – lack of material from parties

Mineral Resources Act 1989

Fitzgerald v Struber [2009] QLC 76
Horn v Sunderland Corporation [1941] 2 KB 26
McGrath v Callaghan & Ors [2011] QLC 29
Mitchell v Oakhill and Mitchell (10 March 1998) unreported
Richardson v Barrett [2001] QLRT 89
Shaw v Heritage Holdings Pty Ltd (1992-93) 14 QLCR 139
Smith v Cameron (1986) 11 QLCR 64
Unimin Australia Limited v Maurice and Tricia Freeman (2007) QLC 76

APPEARANCES: Not applicable

Background

  1. The applicant Eacham Abrasive Blasting Pty Ltd (the miner) currently holds Mining Lease (ML) 20079. A previous holder applied for a renewal of ML 20079 on 7 June 2012 for a period of five years.

  2. The ML is located on land which is owned by Grant Henrik Gundersen and Laurelle Ursula Lorna Gundersen (the landholders). There is also access to the ML across the landholders’ land.

  3. From mapping material provided by the Mining Registrar, Mareeba, the access through the landholders’ property is about 1 km long. ML 20079 has an area of 1 ha.

Principles of compensation

  1. Section 279 of the Mineral Resources Act 1989 (MRA) provides that a mining lease shall not be granted or renewed unless an agreement in relation to compensation has been filed at the office of the Mining Registrar, or in the absence of such an agreement, a determination of compensation has been made by the Court. In this matter, no agreements have been lodged with the Mining Registrar and the matter has been referred to the Court for determination.

  2. The issues which must be considered by the Court are set forth in s 281(3) and (4) of the MRA.

  3. Although s 281 sets out the matters to be considered, it does not define any method of assessment. In Smith v Cameron,[1] the Land Court held:

    “The section in my opinion merely identifies matters which shall be taken into consideration in making the assessment. It does not prescribe a method of valuation. No doubt each case will depend on its own facts and circumstances but it seems to me that either method is open to the valuer.”

    [1](1986) 11 QLCR 64 at p 74 and 75.

  4. In Shaw v Heritage Holdings Pty Ltd

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Details
Case
[2014] QLC 38
Decision Date

CaseChat Overview and Summary

Eacham Abrasive Blasting Pty Ltd sought determination of compensation for the early termination of a mining lease over land at Cloncurry. The defendants, Grant Henrik Gundersen and Laurelle Ursula Loran Gundersen, were the lessors of the land. The case was heard in the Queensland Civil and Administrative Tribunal. The primary issue for the tribunal was to determine the appropriate compensation payable for the early termination of the mining lease. This required consideration of the factors relevant to such a calculation, including the duration of the lease, the use made of the land, and the expectations of the parties at the time of the lease agreement.

The tribunal noted that both parties had provided little material to assist in determining the compensation. Despite this, the tribunal proceeded to consider the statutory framework and relevant case law. It found that the compensation should be based on the reasonable expectations of the parties at the time of the lease agreement, taking into account the terms of the lease and the circumstances at the time. Given the limited information, the tribunal concluded that the compensation payable was $82.50. This amount was based on the consideration of the duration of the lease and the minimal use that had been made of the land. The tribunal ordered that Eacham Abrasive Blasting Pty Ltd pay the compensation sum to the defendants within two months of the renewal of ML 20079.

Orders

Orders of the court

1. Compensation is determined in the total sum of Eighty-two Dollars and Fifty Cents ($82.50).

2. Eacham Abrasive Blasting Pty Ltd pay the total compensation of $82.50 to Grant Henrik Gundersen and Laurelle Ursula Loran Gundersen within two months of the renewal of ML 20079.

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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