AMCI (CQ) Pty Ltd & Anor, Re [2005] QLRT 128

LAND AND RESOURCES TRIBUNAL QUEENSLAND CITATION: Re AMCI (CQ) Pty Ltd & Anor [2005] QLRT 128 PARTIES: Re Application for Mining Lease No. 70339 by AMCI (CQ) Pty Ltd and Nebo Central Coal Pty Ltd FILE NO/S: AML151/05 PROCEEDING: Application for mining lease DELIVERED ON: 30 September 2005 DELIVERED AT: Brisbane HEARING DATE: Heard on the papers MEMBER: Koppenol P ORDER/S: Recommendation made that Application for Mining Lease No. 70339 applied for by the Applicants be granted for the purpose, area and term applied for. (at [19] CATCHWORDS: MINING – MINING LEASE APPLICATION – RECOMMENDATION Mineral Resources Act 1989, ss 245, 252(1), 269(4) Environmental Protection Act 1994 COUNSEL: N/A SOLICITORS: N/A Application [1] This is an application by AMCI (CQ) Pty Ltd (75%) and Nebo Central Coal Pty Ltd (25%) (the applicants) under section 245 of the Mineral Resources Act 1989 (the Act) for a mining lease over a 2,871ha area of land situated 15km west of Coppabella for the mining of coal. The application was lodged with the mining registrar for the Emerald mining district on 17 December 2004. No objections to the application were lodged during the public objection period which ended on 13 September 2005. -- 1 of 4 -- Hearing on the papers [2] The applicants requested that this application be heard by the Tribunal on the papers and without an oral hearing. That procedure is appropriate in the present case. Tribunal’s statutory function [3] In cases such as this, the Tribunal’s statutory function under section 269 of the Act is to take into account and consider a number of prescribed factors and then to make a recommendation to the Minister for Natural Resources and Mines about whether the application should be granted or rejected. In doing so, I have considered all of the material that was provided to the Tribunal by the applicants and the mining registrar. However these reasons only refer to such of the evidence as is relevant or necessary for my decision. Section 269(4) recommendation [4] Section 269(4) provides as follows: “269 Tribunal’s recommendation on hearing … (4) The tribunal, when making a recommendation to the Minister that an application for a mining lease be granted in whole or in part, shall take into account and consider whether— (a) the provisions of this Act have been complied with; and (b) the area of land applied for is mineralised or the other purposes for which the lease is sought are appropriate; and (c) if the land applied for is mineralised there will be an acceptable level of development and utilisation of the mineral resources within the area applied for; and (d) the land and the surface area of the land in respect of which the mining lease is sought is of an appropriate size and shape in relation to— (i) the matters mentioned in paragraphs (b) and (c); and (ii) the type and location of the activities proposed to be carried out under the lease and their likely impact on the surface of the land; and (e) the term sought is appropriate; and (f) the applicant has the necessary financial and technical capabilities to carry on mining operations under the proposed mining lease; and (g) the past performance of the applicant has been satisfactory; and (h) any disadvantage may result to the rights of— (i) holders of existing exploration permits or mineral development licences; or (ii) existing applicants for exploration permits or mineral development licences; and (i) the operations to be carried on under the authority of the proposed mining lease will conform with sound land use management; and (j) there will be any adverse environmental impact caused by those operations and, if so, the extent thereof; and (k) the public right and interest will be prejudiced; and (l) any good reason has been shown for a refusal to grant the mining lease; and (m) taking into consideration the current and prospective uses of that land, the proposed mining operation is an appropriate land use. … .” [5] I will deal in turn with the factors set out in section 269(4). [6] Section 269(4)(a): On 16 August 2005, the mining registrar issued a certificate of application. Pursuant to section 252(1) of the Act, the mining registrar can only do -- 2 of 4 -- so if satisfied that the applicants are eligible to apply for the mining lease and have complied with the requirements of the Act with respect to the application. The applicants have lodged with the mining registrar statutory declarations certifying compliance with the statutory requirements for notifying the application. I note the land the subject of this application comprises freehold land, a statutory grazing homestead perpetual lease and a dedicated road, and that the native title provisions of the Act do not therefore apply. The mining registrar has certified that the owners of the affected restricted land (dams and a bore) and reserve land (a road) have consented to the grant of this application. I am satisfied that the provisions of the Act have been complied with. [7] Section 269(4)(b): The applicants said that they knew that the proposed mining lease area was mineralised because drilling and other exploration activities carried out on the area have indicated that the area is mineralised. I am satisfied that the area is mineralised. [8] Section 269(4)(c): The coal will be mined by underground mining techniques. It is proposed that this mine (Carborough Downs) will be developed as a 2-stage operation. Stage 1 will consist of exploratory mine development by continuous miners which are expected to commence in January 2006, with the initial layout configured for possible introduction of longwall mining. Following development of the first mining block, a decision would be made as to whether longwall mining is considered feasible. Stage 2 operations would then commence. At this time, it is expected that the mine will continue as a productive bord and pillar operation. The mining operations will subsequently convert to a more productive bord and pillar configuration for panel extraction. Sediment dams, access and haul roads and associated infrastructure will be constructed. After extraction, the coal will be stockpiled and then hauled by truck and rail to port for export. I am satisfied that there will be an acceptable level of development and utilisation of the mineral resources within the area applied for. [9] Section 269(4)(d): The application said that the area and shape applied for was in order to economically fully recover the coal reserves (194 million tonnes, including coal within the adjacent ML 70340) and meet environmental obligations. There is no evidence to indicate that the size and shape is not appropriate. [10] Section 269(4)(e): A term of 30 years is sought. That term was nominated to fully exploit the coal reserves and complete mining rehabilitation. I am satisfied that the term sought is appropriate. [11] Section 269(4)(f): The applicants are subsidiaries of AMCI Holdings Australia Pty Ltd. Other subsidiary companies own the Glennies Creek underground coal mine in the Hunter Valley, New South Wales and formerly owned the Coppabella and Moorvale Mines in Queensland. The applicants’ directors have extensive experience in coal mining. Supporting material provided with the application indicates that the applicants have the requisite financial and technical capabilities. [12] Section 269(4)(g): The applicants and their directors have never had any notices to rectify non-compliance or damage, notices to show cause, tenures cancelled, penalties imposed or convictions under the Act. -- 3 of 4 -- [13] Section 269(4)(h): The evidence indicates that there are no such underlying tenures which are not held by the applicants. [14] Section 269(4)(i): The current land use is for agricultural purposes, primarily the grazing of cattle. It is apparently otherwise capable of being used for coal mining purposes only. The mining activities will be carried out in accordance with the draft environmental authority issued under the Environmental Protection Act 1994. After mining, the land will be appropriately rehabilitated. I am satisfied that the proposed mining operations conform with sound land use management. [15] Section 269(4)(j): The mining activities will be carried out in accordance with the draft environmental authority (mining activities) issued by the Environmental Protection Agency. The applicants must comply with the various environmental conditions set out in that document. There were no objections to the issue of that authority. I am not satisfied that there will be such an environmental impact caused by the proposed mining operations as to warrant an unfavourable recommendation in the present application. [16] Section 269(4)(k): There was no evidence before me that indicated that the public right and interest would be prejudiced. A road traverses the south-east corner of the mining lease area and a compensation and consent agreement has been entered into with the local shire council owner. Power lines traverse the mining leases area from west to east but the applicants’ mining plans do not involve any disturbance to them. [17] Section 269(4)(l): There was no evidence before me that indicated any good reason why this application should be refused. [18] Section 269(4)(m): On the basis of the evidence and other material referred to above, I consider that the proposed activity is an appropriate land use. Recommendation [19] Taking into account all of the evidence and other material before me and in particular that referred to above, I recommend to the Honourable the Minister for Natural Resources and Mines that Application for Mining Lease No. 70339, applied for by the applicants, be granted for the purpose, area and term applied for. -- 4 of 4 --