Midas Resources Limited v Whalan

Midas Resources Limited sought a determination of compensation payable to George Edward Whalan and Marion Catherine Whalan under a mining lease renewal application. The mining lease in question, Mining Lease 1066, was over an area of 9 hectares located on Lot 4779 on PH1806 in the Charters Towers District. The lease, granted for the purpose of mining silver ore, gold, bismuth ore, copper ore, and lead ore, was due for renewal. A gazetted road passed through the lease area, and a grazing operation was conducted on the property. The application for the renewal of the lease was lodged on 25 July 2007.

The court had to determine whether compensation payable to the leaseholders could be determined in the absence of an agreement between the parties. Section 279 of the Mineral Resources Act 1989 provided that a mining lease could not be granted or renewed unless an agreement in relation to compensation had been filed at the office of the Registrar, or in the absence of such an agreement, a determination of compensation had to be made by the Court. As no agreement had been lodged with the Registrar, the matter had been referred to the Court for determination.

The court found that an agreement between the parties had been negotiated and was in the process of being adopted by the relevant parties. The court was further advised that climatic conditions had delayed the return of the agreement which related to this lease and three other leases held by the applicant miner in the area and due for renewal now or in the near future. An approach had been made to the Bowen Shire Council for an agreement in relation to that portion of the road that passed through the lease. The court was satisfied that these agreements would be executed, stamped if necessary, and filed with the Registrar, and accordingly struck out the application for determination of compensation in respect of Mining Lease 1066.

The court ordered that the application for determination of compensation payable to George Edward Whalan and Marion Catherine Whalan be struck out.