Re Great Mines Pty Ltd & Titley

Great Mines Pty Ltd applied for the determination of compensation payable to the owners of Mining Lease 10050, Anthony L Titley, Arthur R Titley, Benjamin H Titley, Rosemarie C Titley, and Teena L Titley. The application was pursuant to Section 281 of the Mineral Resources Act 1989. The Court was required to consider the matters set forth in Section 281(3) of the Act, which includes the land valuation at the time of disturbance, the level of usage of the surface by the miner, and the right of the landowner to receive compensation. The Court noted that the method of assessment was not prescribed by the Act and that each case would depend on its own facts and circumstances.

In making its determination, the Court considered that the present use of the land was low intensity grazing but with plans to subdivide the larger lots into smaller rural living areas. The Court also considered that there would be some minor effect from the mining operations which would include the noise of machinery and the movement of people and vehicles on or about the lease area and along the access road. The Court proposed to endorse the terms of settlement offered by the miner with slight adaptation. These were: an amount per hectare based on three times the land valuation at the time of disturbance for areas to be disturbed temporarily by mining and access to the mining area or $1,000 per hectare, whichever is the greater; an amount per hectare based on six times the land valuation at the time of disturbance for areas disturbed permanently by mining and access to the mining area or $1,000 per hectare, whichever is the greater; the amount is payable prior to the commencement of mining; and should no mining occur during the term of the lease, the miner shall pay to the landowner the sum of $250 at the end of the lease term. These determinations include allowance for access and the allowance under Section 281(4)(e) to reflect the compulsory nature of the taking.

The Court ordered that the following amounts are payable by the miner: an amount per hectare based on three times the land valuation at the time of disturbance at the time of disturbance as determined by the Chief Executive, Department of Environment and Resource Management for areas to be disturbed temporarily by mining and access to the mining area or $1,000 per hectare, whichever is the greater; an amount per hectare based on six times the land valuation at the time of disturbance as determined by the Chief Executive, Department of Environment and Resource Management for areas disturbed permanently by mining and access to the mining area or $1,000 per hectare, whichever is the greater; the amount is payable prior to the commencement of mining; and should no mining occur during the term of the lease, the miner shall pay to the landowner the sum of $250 at the end of the lease term.