Matrix Metals Limited v Cloncurry Shire Council

[2007] QLC 78

LAND COURT OF QUEENSLAND

CITATION:	Matrix Metals Limited v Cloncurry Shire Council [2007] QLC 0078
PARTIES:	Matrix Metals Limited (applicant)
v.
Cloncurry Shire Council (respondent)
FILE NO:	MLC00136/2007
PROCEEDING:	Application for determination of compensation.
DELIVERED ON:	23 October  2007
DELIVERED AT:	Brisbane
MEMBER:	Mr RS Jones
ORDERS:	1.    Matrix Metals Limited is to pay to the Cloncurry Shire Council compensation in the amount of $100.00.
CATCHWORDS:	Renewal of mining lease – determination of compensation – Mineral Resources Act 1989 ss.279 and 281.
APPEARANCES:	Not applicable – Heard on the Papers

1. Matrix Metals Limited seeks the renewal of an existing mining lease (ML90092) which affects a road reserve which is under the control of the Cloncurry Shire Council. 

2. The original lease commenced on 1 June 1996 and expired on 31 May 2006.  The renewal application is for a further ten years. 

3. The reasons for the mining lease are described in the application for renewal in the following terms:

   "To allow the holder sufficient time to proceed with resource and mining studies and carry out mining in conjunction with the other mining leases held in the project."

   and:

   "To carry out open pit mining of the copper ore and allow sufficient area (for) stockpiling and any infrastructure required for the mining process."

Some Relevant Legislation

1. Section 279 of the Act requires compensation for a mining lease to be settled before the grant or renewal of a lease. Compensation may be agreed upon by the parties or determined by the Court. In this instance, as no agreement has been reached between the parties, determination of compensation has been referred to this Court.

2. In cases where compensation is referred to the Court pursuant to s.279 of the Act the owner of the land affected by the granting or renewal of the mining lease is entitled to compensation pursuant to s.281(3)(a) for:

   "(i)      deprivation of possession of the surface of land of the owner;

   (ii)diminution of the value of the land of the owner or any improvements thereon;

   (iii)diminution of the use made or which may be made of the land of the owner or any improvements thereon;

   (iv)severance of any part of the land from other parts thereof or from other land of the owner;

   (v)any surface rights of access;

   (vi)all loss or expense that arises;

   as a consequence of the grant or renewal of the mining lease."

The Conduct of the Proceeding and Evidence

1. On 20 July 2007 the Land and Resources Tribunal, (LRT), as it then was, wrote to Matrix and the Council enclosing copies of Practice Directions 1 and 2 of the LRT.  That correspondence and the Practice Directions were to the effect that the determination of compensation would be dealt with on the papers and without an oral hearing unless either party made a written request for such a hearing or, where it was considered that a hearing was otherwise necessary.  In this matter no party made a request for a hearing.  Practice Direction 1 also provides for the filing of material by the parties in support of their respective positions concerning compensation.  In this case neither party forwarded any material to the LRT concerning compensation.  In the circumstances, the only material of any assistance before the Court is the information contained in the Mining Registrar's Notice To The Tribunal and the Public Mining Lease Report.

Quantum

1. The application states that the lease renewal involves no changes to the boundaries of the original lease and access to and from the mining lease area also remains unaltered.  On the very limited evidence before me it seems that the current use of the land surrounding the subject road reserve is for relatively low intensity grazing and mining.  The reserve area in question is also relatively remote in that it lies about 20 kilometres north west of the township of Kajabbi, north of Cloncurry. 

2. As mentioned above the Council has provided no material in support of its position concerning compensation.  In fact, from the material before me, I have not even been able to identify the actual area of the road reserve affected by the subject mining lease. 

3. Having regard to the remoteness of the area, the fact that it is only a road reserve which is affected by the lease and the fact that there is no probative evidence of what might be an appropriate level of compensation, I will determine compensation at only a nominal amount. 

4. In the circumstances I determine compensation in this matter in the amount of $100.00 inclusive of the allowance provided for in s.281(4)(e) of the Act. Accordingly, the order of the Court is that:

Orders:

1.Matrix Metals Limited is to pay to the Cloncurry Shire Council compensation as determined in the amount of $100.00.

R S JONES

MEMBER OF THE LAND COURT