Strategic Minerals Corporation N.L. v Burnett Holdings (NQ) Pty Ltd

Strategic Minerals Corporation N.L. sought a determination of compensation for the grant of a mining lease (ML 90238) over land owned by Burnett Holdings (NQ) Pty Ltd. The dispute was adjudicated in the Queensland Resources and Minerals Tribunal. The central issue before the Tribunal was the appropriate compensation payable to Burnett Holdings for the grant of the mining lease, including how to determine the compensation amount for the initial and subsequent years. The Tribunal had to consider various factors, including the valuation report prepared by the respondent, the stage of payment, and the impact of the Consumer Price Index on the compensation.

The Tribunal examined the valuation report and the documents provided by the parties. It noted that the valuation report was prepared on a desktop basis, without physical inspection of the land. However, the Tribunal deemed the report sufficient for determining the compensation. The Tribunal also considered the impact of the existing access road and severance on the land's value, as well as the presence of stock water and water points. It further addressed the issue of whether the compensation should account for a potential "double dip" due to the gazettal of the land as a mineral reserve.

In its reasoning, the Tribunal found that the compensation for the first year of the mining lease should be set at $45,000, payable within three months from the grant. For subsequent years, the compensation was to be calculated by increasing the base amount of $5,131.25 by the percentage increase in the All Groups Consumer Price Index for Brisbane in the preceding year, payable annually in advance. The Tribunal also ordered the applicant to pay the costs of the respondent's valuation report, amounting to $4,750, within one month from the date of the order.