Mineralogy Pty Ltd v Adani Mining Pty Ltd

Mineralogy Pty Ltd has brought an application against Adani Mining Pty Ltd to stay an expert determination that has been referred to by the parties under a dispute resolution clause in a deed of agreement between them. The deed, which is a royalty deed, was executed in 2011. The dispute concerns Adani’s failure to execute a priority deed in accordance with clause 7.1 of the royalty deed, which requires any financiers to whom Adani seeks to encumber the mining tenement to execute a priority deed agreeing that any encumbrance they take will rank after any unpaid royalties owed to Mineralogy. Mineralogy did not sign the priority deed, and Adani referred the dispute to expert determination under clause 8.5 of the royalty deed. Mineralogy seeks to stay that expert determination. The court was required to determine whether the dispute resolution clause in the royalty deed applied to the dispute, whether Adani gave Mineralogy proper notice of the dispute, and whether the dispute had merit. The court held that the dispute resolution clause applied to the dispute, that Adani gave Mineralogy proper notice of the dispute, and that the dispute had merit. The application was dismissed.