McGrath v Callaghan & Ors

In the Land Court of Queensland, His Honour PA Smith considered an application by William David McGrath for the determination of compensation payable to the landholders in relation to Mining Lease No 20349. The application was brought under the Mineral Resources Act 1989, as the miner was unable to reach an agreement with the landholders on compensation. The landholders did not file any material or make any submissions to the Court. The miner offered to pay $75 per year, however this offer was not accepted by the landholders. The Court was required to determine the quantum of compensation under s.281 of the MRA, which sets out the matters to be considered but does not define any method of assessment. The Court determined compensation by applying the principle of equivalence, which seeks to place the landholders in the same position as if the mining lease was not granted. The Court awarded $25.00 for access, and an additional $2.50 under s.281(4)(e) of the MRA to reflect the compulsory nature of the grant of the mining lease. In total, the Court awarded compensation in the sum of $27.50. The miner was ordered to pay the total compensation of $27.50 to the landowners within a period of three months from notification of grant of the mining lease by the Mining Registrar. No order for costs was made.