Chong, Re [2004] QLRT 56

LAND AND RESOURCES TRIBUNAL QUEENSLAND CITATION: Re D.R. Chong [2004] QLRT 56 PARTIES: In the Matter of Mining Lease No. 50209 – Application by Donervan Robert Chong for Mining Lease FILE NO: AML00070/2004 PROCEEDING: Application for mining lease DELIVERED ON: 22 June 2004 DELIVERED AT: Brisbane HEARING DATE: 10 June 2004 PRESIDING MEMBER: Kingham DP ORDER: Recommendation made that the Mining Lease is granted over the entire application area, for the purpose and for the term sought by the Applicant. (at [16]) CATCHWORDS: MINING – MINING LEASE – RECOMMENDATION Mineral Resources Act 1989, ss 245, 252, 252A, 269(4) COUNSEL: N/A SOLICITORS: N/A AGENT/S: N/A [1] KINGHAM DP: This is an application by Donervan Robert Chong under s. 245 of the Mineral Resources Act 1989 (the Act) for a mining lease over a 26.8ha area of land approximately 60km west of Warwick in the Warwick Shire for the purpose of mining gold. The Application was lodged with the Mining Registrar for the Brisbane mining district on 15 October 2003. No objection to the Application was lodged during the public objection period, which ended on 19 March 2004. The underlying tenure is freehold. Section 269(4) criteria: [2] In taking account of and considering the criteria specified in s. 269(4), I have relied upon the Additional Information and Statutory Declaration of the Applicant sworn on 26 March 2004 and the evidence he gave at the hearing on 10 June 2004. I have also -- 1 of 4 -- relied upon the other material lodged by the Applicant with the Department of Natural Resources, Mines and Energy and provided by the Mining Registrar to this Tribunal and the Mining Registrar’s Report in relation to this Application. These reasons refer to the salient points, but not to all the relevant evidence, that I have taken into account in making my recommendation. Section 269(4)(a) - Have the provisions of the Act been complied with? [3] On 13 February 2004, the Mining Registrar issued a Certificate of Public Notice.1 The Applicant lodged a Declaration of Compliance with the requirements for notifying the Application, within the time required. The Mining Registrar issued a Certificate of Application on 27 January 2004, which he can only do if satisfied that the Applicant is eligible to apply for the mining lease and has complied with the requirements of the Act with respect to the Application.2 Section 269(4)(b) - Is the land applied for mineralised or are the other purposes for which the lease is sought appropriate? [4] The Application seeks the grant of a mining lease for the purpose of mining gold. The Applicant has explored the area applied by hand mining test sites and has systematically tested along creeks and gullies, in some places at 15 to 20 metre intervals. He estimates the area applied for will produce some 1.2g/tonne. I am satisfied that the area is generally mineralised. Section 269(4)(c) - If the land applied for is mineralised, will there be an acceptable level of development and utilisation of the mineral resources within the area applied for? [5] The Applicant proposes to develop this mine in partnership with a miner from NSW. The Applicant will retain the lease in his name. He and his partner hold 2 opal mining claims in Lightning Ridge that they work intermittently. These claims are productive but do not generate significant income. There is no evidence to suggest that there will not be an acceptable level of development and utilisation of the mineral resource in the area. Section 269(4)(d) – Is the land and the surface area of that land in respect of which the mining lease is sought of an appropriate size and shape? [6] The Applicant determined the boundaries of the lease on an assessment of the area of mineralisation based on exploration activities. The area chosen also has little overburden, with obvious savings in time and money for the venture. The Applicant has sought a mining lease over the entire surface area applied for. There is no evidence to indicate the size and shape is not appropriate. Section 269(4)(e) - Is the term sought appropriate? [7] The Applicant seeks a term of 5 years, although this may need to be renewed if the resource exceeds his estimate. There is no evidence to suggest the term is not appropriate. 1 Section 252A. 2 Section 252(1). -- 2 of 4 -- Section 269(4)(f) – Has the Applicant the necessary financial and technical capabilities to carry on mining operations under the proposed mining lease? [8] The Applicant owns most of the equipment for the mine and will design and build the processing plant himself. He and his partner will share security deposit and the operating costs equally. The Applicant has worked in alluvial tin and gold mining and has mined opal. He is familiar with the requirements for each stage of an alluvial gold mining operation. He is a landscape horticulturist, has worked in revegetation and has trained miners in vegetation propagation. There is no evidence to suggest that the Applicant does not have access to the necessary financial and technical resources. Section 269(4)(g) – Has the past performance of the Applicant been satisfactory? [9] There is no evidence to suggest the past performance of the Applicant has not been satisfactory. Section 269(4)(h) – Will any disadvantage result to the holders of existing exploration permits or mineral development licences or existing Applicant for exploration permits or mineral development licences? [10] The underlying exploration permit is held by the Applicant. There are no other holders of or Applicant for exploration tenures that would be affected by the grant. Section 269(4)(i) – Do the operations to be carried on under the authority of the mining lease conform with sound land use management? [11] Approximately 5% of the area applied for is used for low intensity cattle grazing. The landholders initially objected to the grant of the mining lease but subsequently withdrew the objection. The Applicant has the technical experience necessary to revegetate the site after mining. Section 269(4)(j) – Will there be any adverse environmental impacts, and if so, the extent thereof: [12] A draft environmental authority was issued on 26 January 2004. The draft authority requires the Applicant to comply with the standard environmental conditions contained in the Code of Environmental Compliance for Mining Lease Projects. There is no evidence to suggest that the environmental impacts will not be adequately dealt with by compliance with the conditions of the Code. Importantly, the Applicant is experienced in revegetation and has trained other miners in propagation techniques for mine site rehabilitation. His experience and knowledge are grounds for confidence that the Applicant will be able to fulfil the requirements of the authority. Section 269(4)(k) – Will the public right and interest be prejudiced? [13] There is no public infrastructure on the area applied for. There was no evidence before me that indicated the public right and interest would be prejudiced. -- 3 of 4 -- Section 269(4)(l) – Has any good reason been shown for a refusal to grant mining lease? [14] There was no evidence before me that indicated any good reason why this Application should be refused. Section 269(4)(m) – Is the proposed mining operation an appropriate land use taking into consideration the current and prospective uses of the land? [15] On the basis of the evidence considered in relation to criteria (i), (j), (k) and (l), I consider the proposed activity is an appropriate land use. Recommendation: [16] Taking into account all the evidence before me and, in particular, that evidence referred to above, I recommend to the Honourable the Minister for Natural Resources, Mines and Energy that the Mining Lease is granted over the entire application area, for the purpose and for the term sought by the Applicant. -- 4 of 4 --