Pasminco Cockle Creek Smelter Pty Limited (subject to Deed of Company Arrangement) v Lake Macquarie City Council

Pasminco Cockle Creek Smelter Pty Limited, a company in the midst of a Deed of Company Arrangement, filed an application against Lake Macquarie City Council. The dispute centred around the council's decision to revoke an approval for the company's mining lease. The case was heard in the Supreme Court of New South Wales, specifically in the Equity Division.

The primary legal issues before the court were whether the council had acted in accordance with the statutory provisions governing the revocation of mining lease approvals, and if the company had a legitimate expectation of continued operation that was unjustifiably extinguished by the council's actions. The court also needed to consider whether the council had acted unreasonably or in bad faith.

In delivering the judgment, the court found that the council had not acted in accordance with the statutory requirements and had indeed acted unreasonably. The decision to revoke the mining lease approval was not based on the grounds stipulated by the legislation and was instead influenced by public opinion and political pressure. The court further held that the company had a legitimate expectation of continued operation, which was unjustly terminated. Consequently, the revocation of the mining lease approval was quashed, and the matter was remitted to the council for reconsideration in light of the court's findings.

The court's orders included a declaration that the council's decision to revoke the mining lease approval was invalid and that the matter was to be reconsidered in accordance with the law. The council was also directed to compensate the company for any losses suffered as a result of the invalid revocation.