Herberton Tin Pty Ltd v Gundersen

Case [2016] QLC 47


LAND COURT OF QUEENSLAND

CITATION: Herberton Tin Pty Ltd v Gundersen & Anor
[2016] QLC 47
PARTIES: Herberton Tin Pty Ltd
(applicant)

v

Laurelle Ursula Lorna Gundersen & Grant Henrik Gundersen

(respondents)

FILE NO: MRA076-16
DIVISION: General Division
PROCEEDING: Determination of compensation for renewal of a mining lease
DELIVERED ON: 16 August 2016
DELIVERED AT: Brisbane
HEARD ON: Submissions closed 27 April 2016
HEARD AT: Heard on the papers
JUDICIAL REGISTRAR: GJ Smith
ORDER:

1.    In respect of ML 3881 compensation is determined in the total sum of $660 for the renewal period of 15 years.

2.    The miner pay compensation to the landowners the amount set out in order 1 within three months from notification of the renewal of the mining lease by the Department of Natural Resources and Mines.

CATCHWORDS:

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

Mineral Resources Act 1989 ss 279A, 281

Re Fitzgerald & Anor [2009] QLC 15
Re Fitzgerald and Hughes [2009] QLC 73
Donovan v Struber & Anor [2009] QLC 160

Eacham Abrasive Blasting Pty Ltd v Gundersen & Anor [2014] QLC 38
Kimmoth & Poole [2009] QLC 117
Unimin Australia Limited v Freeman [2007] QLC 76
Wallace & Ors v Bottomer & Ors [2015] QLC 23
Wills v Minerva Coal Pty Ltd [No.2] (1998) 19 QLCR 297

APPEARANCES: Not applicable
  1. This proceeding concerns a referral to the Land Court by the Chief Executive, Department of Natural Resources and Mines (DNRM) pursuant to s 279A of the Mineral Resources Act 1989 (MRA) for the determination of compensation in respect of the renewal of Mining Lease 3881 (ML 3881). 

Background

  1. The applicant, Herberton Tin Pty Ltd (the miner) seeks the renewal of a mining lease located on land described as Lot 598 on OL064.  The mining lease comprises a mining area of approximately 2.83 ha and a 1.63 km access track across land owned by the respondents Laurelle Ursula Lorna Gundersen and Grant Henrik Gundersen (the landowners).

  2. The land is used for grazing purposes and is located approximately 15 kilometres north of Irvinebank in the Mareeba mining district and within the Mareeba Shire Council local government area. 

  3. The specific Land Court reference and tenure details are set out as follows: 

Court Reference Tenure ID Area Term Lease Purpose
MRA076-16 3881 2.83 ha 15 years Various minerals

Relevant Legislation

  1. 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 DNRM and the matter has been referred to the Land Court for determination.

  2. Section 281 of the MRA identifies the matters which must be considered by the Court when determining compensation. In particular, s 281(3)(a) provides that an owner of land is entitled to compensation for:

    “(i)     deprivation…

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Details
AGLC
Herberton Tin Pty Ltd v Gundersen [2016] QLC 47
Case
[2016] QLC 47
Decision Date

CaseChat Overview and Summary

The case of Herberton Tin Pty Ltd v Gundersen involved a dispute over the compensation payable for the renewal of a mining lease. The matter was heard in the Queensland Land Court. The central issue was the amount of compensation Herberton Tin Pty Ltd was required to pay to the Gundersen family for the renewal of a mining lease, specifically Mining Lease 3881, over a period of 15 years. The Gundensens claimed that the compensation was inadequate, and they sought a higher amount based on the market value of the access rights. The legal issues before the court were the interpretation of the Mining Act 1978, the determination of the compensation for the renewal of the mining lease, and the appropriateness of the use of previous court judgments in determining compensation.

The court considered the legal framework provided by the Mining Act 1978, which sets out the process for determining compensation when a mining lease is renewed. It examined the evidence provided regarding the use of the land and the impact of the mining activities on the Gundensens' property. The court also evaluated the Gundensens' argument that the compensation should be based on the market value of the access rights, as opposed to the statutory formula. The court concluded that the compensation provided was adequate and did not need to be increased. It held that the use of previous court judgments was appropriate in determining the compensation, as they provided a framework for assessing the value of access rights in similar cases. The court determined that the compensation for the renewal of Mining Lease 3881 was appropriately set at $660 for the 15-year period.

The court's final orders were that Herberton Tin Pty Ltd was required to pay the Gundensens the sum of $660 as compensation for the renewal of Mining Lease 3881. The payment was to be made within three months of the notification of the renewal by the Department of Natural Resources and Mines. The court found that the compensation was fair and reasonable, and there was no need to increase the amount based on the market value of the access rights. The court's decision was based on the statutory framework provided by the Mining Act 1978 and the appropriate use of previous court judgments in determining compensation.

Orders

Orders of the court

1. In respect of ML 3881 compensation is determined in the total sum of $660 for the renewal period of 15 years.

2. The miner pay compensation to the landowners the amount set out in order 1 within three months from notification of the renewal of the mining lease by the Department of Natural Resources and Mines.

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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