Kaljevic v Mills
[2010] QLC 124
•30 August 2010
LAND COURT OF QUEENSLAND
CITATION: Milenko Kaljevic v Mills & Anor [2010] QLC 0124
PARTIES:In the matter of Mining Lease No 95620 – Determination of compensation payable by Milenko Kaljevic to Shane Mills and Troy Mills
FILE NO:MRA120-10
PROCEEDING: Application for determination of compensation
DELIVERED ON: 30 August 2010
DELIVERED AT: Brisbane
MEMBER:Mr WA Isdale
ORDER/S:1. Total compensation is determined in the amount of $2,160.
2. The miner must pay the total compensation of $2,160 to the landowners within two months from notification by the Mining Registrar of the issue of Mining Lease No. 95620.
CATCHWORDS: MINING LEASE – Determination of Compensation
Mineral Resources Act 1989 ss 279, 281
APPEARANCES: Not applicable – Heard on the Papers
Background
On 12 May 2010 the Mining Registrar at Winton referred the matter of compensation for Mining Lease No. 95620 to the Land Court in accordance with ss 279 and 281 of the Mineral Resources Act 1989 (the Act).
The tenure sought is for a duration of 10 years for the purpose of opal mining. Photographs indicate that the mining is open cut.
The Submissions
Draft compensation agreement forms supplied by Mr Kaljevic (the miner) indicate a willingness to pay $15 per year as compensation.
Submissions from Shane Mills and Troy Mills (the landowners) claim compensation at the rate of $180 per year. Photographs of the mining were supplied on behalf of the landowners.
The landowners refer to the costs associated with mining, such as maintaining and grading roads and the cost of eradicating weeds which may be brought in by machinery associated with the mining. They also refer to stock losses caused by gates being left open and to rubbish left lying about. Additionally, they state that holes may become traps for cattle in wet conditions and that people associated with the miner create a nuisance with motorbikes. Rubbish is left at gateways despite bins being provided, fires have been lit contrary to the owners’ instructions and there are phone calls and paperwork required to claim annual compensation.
The mining program is to prospect for opal and to mine by open cut methods. There is not any statement of the actual area proposed to be utilised but some guidance is provided by the photographs.
The Act
The Mineral Resources Act 1989 sets out, in s.281, the matters for which the Land Court shall settle the amount of compensation the owners of land are entitled to. The owners refer to a reduction in the value of their grazing land by the presence and effects of the mining and that is a category of compensation allowed by s.281(3)(a)(ii). Sub-paragraph (vi) allows compensation for all loss or expense which arises. This category is wide enough to include the costs of road maintenance and of the eradication of weeds introduced by mining machinery as well as the cost of stock loss.
Although no detailed costing of actual losses or expenses are particularised, I am satisfied that the $180 per year sought by the landowners is a conservative sum. The $15 per year contended for by the miner is so low as to be, in my opinion, unrealistic as a measure of compensation.
Section 281(4)(e) requires that the Court shall determine an additional amount to reflect the compulsory nature of the process being employed under the Act. It is required to be not less than 10% of the aggregate amount determined under sub-section 3.
The submissions of the landowners make clear that they are considerably inconvenienced by the compulsory nature of the mining lease in that they are unable to simply exercise what would otherwise be their right to refuse entry onto their land. In view of the extent of their inconvenience as described in their submissions and in view of the statutory minimum of 10% additional compensation, I am satisfied that the minimum figure could not be justified in the present case. I accordingly determine an additional amount of 20% to reflect the compulsory nature of the process.[1]
[1] See Endeavour Mining Pty Ltd v Mintram & Anor [2009] QLC 0187 at [18] where 25% was allowed. See also Qld Zeolite Pty Ltd v Spencer & Ors [2010] QLC 0112 where 20% was awarded.
In accordance with s.281(5) of the Act the Court determines that the total compensation shall be payable as follows:
$180 yearly compensation 36 additional yearly amount to reflect the compulsory nature of the lease $216 total annual compensation
This sum is applicable to each year of the tenure sought, which is for a period of 10 years. Total compensation is therefore determined at $2,160. It is recognised that this will relieve the landowners of the burden and expense associated with annual claims for compensation but the amount allowed is so conservative that no possible injustice could result to the miner from this.
The miner must pay the total compensation of $2,160 to the landowners within two months of notification by the Mining Registrar of the issue of the mining lease.
WA ISDALE
MEMBER OF THE LAND COURT
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