Re Sawicki

In the case of Re Sawicki, Michael Sawicki applied for the determination of compensation for the renewal of Mining Lease 60070 in the Quilpie District. The lease, located on Bingara Pastoral Holding, is over an area of 4.857 ha and is sought for the purpose of mining for opal and infrastructure requirements. Sawicki sought a term of 10 years for the lease, which would result in the loss of the use of the land for grazing operations for the duration of the lease. The current landowner, Shane Warner, opposed the application, but the matter was dealt with on the papers as neither party sought to appear before the court.

The primary legal issue in this case was determining the compensation payable to the landowner under section 281 of the Mineral Resources Act 1989. Section 281 of the Act sets out the matters to be considered in making the assessment, but it does not prescribe a method of valuation. The court referred to previous cases, such as Smith v Cameron and Shaw v Heritage Holdings Pty Ltd, to establish that the method of assessment remains a matter governed by the facts and circumstances of each case.

In making the determination, the court considered the small area involved and the lack of formal valuation evidence. The court awarded a nominal sum of $10 in relation to access to the claim and made no allowance for any perceived blot on title or injurious affection of the balance of the property. The court also took into account the limited effect the mining operations would have on the landowner's grazing operations. Based on the available evidence and previous determinations in the area, the court determined compensation under section 281 of the Mineral Resources Act 1989 to be the sum of $5 per annum per hectare for the term of the lease, plus an additional $10 for access, resulting in an aggregate total of $260.

The court also awarded an additional sum of $26 under section 281(4)(e) of the Act to reflect the compulsory nature of the action taken. In terms of payment, the court ordered that the miner pay total compensation to the current landowner in the sum of $286 within three months of notification of the renewal of the grant of the mining lease by the Mining Registrar. No order for costs was made as neither party sought an order for costs and it was not appropriate in this matter.