Unimin Australia Limited v Freeman

LAND COURT OF QUEENSLAND

CITATION:

Unimin Australia Limited v M and T Freeman [2007] QLC 0076

PARTIES:

Unimin Australia Limited
(applicant)

v.

Maurice Freeman and Tricia Freeman
(respondents)

FILE NO:

MLC00138/2007

PROCEEDING:

Application for determination of compensation.

DELIVERED ON:

23 October 2007

DELIVERED AT:

Brisbane

MEMBER:

Mr RS Jones

ORDERS:

1.    Unimin Australia Limited is to pay to Maurice Freeman and Tricia Freeman compensation in the amount of $2,500 per hectare (or part thereof) for that part of Lot 71 on Plan FY17 Parish of Booneene unable to be used by them as a consequence of Unimin's mining operations on or concerning Mining Lease 5687. 

2.    The payment of such compensation is to be paid annually in arrears for the twelve months ending 31 December for each year after the commencement of any mining operations on Lot 71 and any such payment of compensation is to be paid to Maurice Freeman and Tricia Freeman by no later than 1 March of each year.

3.    The above mentioned rate of $2,500 per hectare is to be adjusted annually for the following calendar year by the corresponding percentage increase (if any) in the Consumer Price Index in the December Quarter All Groups CPI value applicable to Brisbane as published in the Australian Bureau of Statistics.  However, in circumstances where the index decreases, the rate of $2,500 per hectare will not be adjusted. 

CATCHWORDS:

Renewal of mining lease – determination of compensation – Mineral Resources Act 1989 ss.279 and 281.

APPEARANCES:

Not applicable – Heard on the Papers

1. Mr and Mrs Freeman are the owners of land described as Lot 71 on Plan FY17, Parish of Boonenne which lies in the Brisbane mining district of Queensland.  Unimin Australia Limited seeks the renewal of an existing mining lease (ML5687) which affects Lot 71.  The area of the mining lease is identified in the application for renewal dated 5 June 2006 as 24.78 hectares.  The reason for the mining lease is described in the application for renewal in the following terms:

   "To enable resource to be adequately defined and recovered"

2. The original lease expired on 31 March 2007.  The renewal application is for a term of twenty one years. 

Some Relevant Legislation

1. Section 279 of the Mineral Resources Act 1989 (MRA) requires compensation for a mining lease to be settled before the grant or renewal of the lease.  Compensation may be agreed upon by the parties or determined by the Court.  In this instance, as no agreement has been reached between the parties, the determination of compensation has been referred to the Court. 

2. In cases where compensation is referred to the Court pursuant to s.279 of the MRA, as is the case here, the owner of the land affected by the granting or renewal of the mining lease is entitled to compensation pursuant to s.281(3)(a) for:

   "(i)      deprivation of possession of the surface of land of the owner;

   (ii)diminution of the value of the land of the owner or any improvements thereon;

   (iii)diminution of the…