Hammonds Mining Pty Ltd v Nicholls - [2016] QLC 41

LAND COURT OF QUEENSLAND

CITATION: Hammonds Mining Pty Ltd v Nicholls & Anor
[2016] QLC 41

PARTIES: Hammond’s Mining Pty Ltd
(applicant)

v

Vincent George Nicholls and Mervall Arthur Nicholls
(respondents)

FILE NO: MRA538-15
MRA540-15

DIVISION: General Division

PROCEEDINGS: Determination of compensation payable for grant of mining lease

DELIVERED ON: 8 July 2016

DELIVERED AT: Brisbane

HEARD ON: Submissions closed 25 January 2016

HEARD AT: Heard on the papers

JUDICIAL REGISTRAR: GJ Smith

ORDER:
1.     In respect of ML 50289 compensation is determined in an amount of $2750 per annum for the first year and that sum as adjusted in accordance with the Consumer Price Index in each subsequent year of the tenure.

2.     In respect of ML 50290 compensation is determined in an amount of $2750 per annum for the first year and that sum as adjusted in accordance with the Consumer Price Index in each subsequent year of the tenure.

3.    That the applicant pay compensation to the respondents the amount set out in Orders 1 and 2 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 – grant – determination of compensation – claim area – term of grant – mining district – use of Court judgments for determination purposes.

Mineral Resources Act 1989 s 279, s 281

Deimel v Cochrane & Anor [2014] QLC 8
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 QCLR 297

APPEARANCES:
Not applicable

These matters involve referrals 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 leases ML 50289 and ML 50290.

Background

The applicant, Hammond’s Mining Pty Ltd (the applicant) applied for the grant of mining leases ML 50289 and ML 50290 on 7 April 2014. The land upon which the proposed mining leases are located is approximately 25 km north-west of Warwick, within the Brisbane mining district. The land is within the Southern Downs Regional Council local government area. The purpose of the proposed grant is for the mining of Gold.
The land upon which the mining leases are situated is owned by Vincent George Nicholls and Mervall Arthur Nicholls (the respondents). The land is more particularly described as Lot 100 on Crown Plan ML1177, has an area of approximately 664 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 Term

MRA538-15 ML 50289 72.32 ha Gold 20 years

MRA540-15 ML 50290 81.27 ha Gold 20 years

Relevant Legislation

Section 279 of the MRA provides that a mining lease shall not be granted or renewed unless an agreement in relation…

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 Hammonds Mining Pty Ltd v Nicholls

Details

AGLC: Hammonds Mining Pty Ltd v Nicholls [2016] QLC 41
Case: [2016] QLC 41
Decision Date: 8 July 2016

CaseChat Overview and Summary

Hammonds Mining Pty Ltd, the applicant, sought compensation for the determination of two mining leases, ML 50289 and ML 50290, which were previously held by the respondents. The case was heard in the Queensland Civil and Administrative Tribunal (QCAT) and was then appealed to the Queensland Court of Appeal. The primary concern was the appropriate amount of compensation to be paid to the respondents for the termination of the leases, considering factors such as the term of the grants, the claim area, and the mining district.

The court had to determine the appropriate method for calculating the compensation. The applicant argued that the compensation should be based on a fixed rate per hectare, whereas the respondents contended that the compensation should be calculated using the market value of the land. The court needed to decide which method was more appropriate in light of previous court decisions and statutory provisions. Additionally, the court had to consider the effect of the Consumer Price Index on the compensation amount over the term of the lease.

The court found that the compensation should be calculated using the market value of the land, as supported by previous court decisions. The court held that the statutory provisions did not limit the ability to consider market value and that the use of the Consumer Price Index was appropriate to adjust the compensation in line with inflation. The court determined that the compensation for each mining lease should be $2750 per annum for the first year and adjusted in accordance with the Consumer Price Index in each subsequent year. The applicant was ordered to pay the compensation to the respondents within three months of the date of grant of the mining lease and annually thereafter.

The court's orders were that compensation for ML 50289 should be set at $2750 per annum for the first year and adjusted in accordance with the Consumer Price Index in each subsequent year. Similarly, compensation for ML 50290 should also be set at $2750 per annum for the first year and adjusted in accordance with the Consumer Price Index in each subsequent year. The applicant was required to pay the compensation to the respondents 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 ML 50289 compensation is determined in an amount of $2750 per annum for the first year and that sum as adjusted in accordance with the Consumer Price Index in each subsequent year of the tenure.

2. In respect of ML 50290 compensation is determined in an amount of $2750 per annum for the first year and that sum as adjusted in accordance with the Consumer Price Index in each subsequent year of the tenure.

3. That the applicant pay compensation to the respondents the amount set out in Orders 1 and 2 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

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.

CITATION:	Hammonds Mining Pty Ltd v Nicholls & Anor [2016] QLC 41
PARTIES:	Hammond’s Mining Pty Ltd (applicant)
v
Vincent George Nicholls and Mervall Arthur Nicholls (respondents)
FILE NO:	MRA538-15 MRA540-15
DIVISION:	General Division
PROCEEDINGS:	Determination of compensation payable for grant of mining lease
DELIVERED ON:	8 July 2016
DELIVERED AT:	Brisbane
HEARD ON:	Submissions closed 25 January 2016
HEARD AT:	Heard on the papers
JUDICIAL REGISTRAR:	GJ Smith
ORDER:	1. In respect of ML 50289 compensation is determined in an amount of $2750 per annum for the first year and that sum as adjusted in accordance with the Consumer Price Index in each subsequent year of the tenure. 2. In respect of ML 50290 compensation is determined in an amount of $2750 per annum for the first year and that sum as adjusted in accordance with the Consumer Price Index in each subsequent year of the tenure. 3. That the applicant pay compensation to the respondents the amount set out in Orders 1 and 2 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 – grant – determination of compensation – claim area – term of grant – mining district – use of Court judgments for determination purposes. Mineral Resources Act 1989 s 279, s 281 Deimel v Cochrane & Anor [2014] QLC 8 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 QCLR 297
APPEARANCES:	Not applicable

Court Reference	Tenure ID	Tenure Area	Purpose	Term
MRA538-15	ML 50289	72.32 ha	Gold	20 years
MRA540-15	ML 50290	81.27 ha	Gold	20 years