Cremorne Island Enterprises Pty Ltd, Re [2000] QMW 40

- -- IN THE MATTER OF: BEFORE: APPLICANT: REPORT: APPLICATION UNDERPART 7 OF THE MINERAL RESOURCES ACT 1989 FOR A MINING LEASE (NUMBER 95300) JN THE WINTON DISTRICT MRF W WINDRIDGE MINING WARDEN RAY PETER DOOLEY The applicant (hereinafter referred to as the miner or applicant miner) seeks a mining lease under the provisions section 234(1) of Part 7 of the Mineral Resources Act 1989 (hereinafter referred to as the MRA or the act) for the purpose of mining for GYPSUM. The application is for swface area of 70.87 hectares and is situated on LOT 4189 on PLAN EL813328, County ofELDERSLIE, Parish of DERMOD. Access is through the same property. The lease if granted is to be known as ''TOM". Power to grant such a lease is vested in the Governor-in-Council pursuant to section 234 of the act after recommendation by the Minister. Except for the reservation in section 8(3) all minerals are the property of the Crown. The grant of a lease does not create any estate or interest in the land (s.10), although there is the power to determine title to land (s.363(5)). The landowner has no right of veto. The use of the land for the purposes nominated is a permitted use under s.319 of the MRA. Any mining tenure is not subject 95300MLA.WIN 1 [2000] QMW 40 -- 1 of 6 -- Warden's Court of Queensland 28 February 2000 I am satisfied, on the material, including the uncontested information in the application form and the declaration of posting and advertising that all the provisions of the act (other than the provisions requiring the hearing) have been complied with or substantially complied with. (s.392). I find that I am satisfied that, (a) the provisions of the act have been complied with, (b) there is no valid objection, and (c) the consent of any trustee or other person is not required. I therefore dispense with the hearing under the provisions of s.270(1) of the act. (b) Is the land mineralised or is the other purpose for which the lease is sought appropriate? I am satisfied that the resource sought is a mineral (s.5). Under section 234(1), the applicant is entitled to erect any infrastructure necessary in the winning of that mineral. I accept the applicant's advice and I am satisfied on the information given that the purpose for which the lease is sought is appropriate. The application area is within an area generally recognised as holding substantial deposits of gypsum. The applicant is required to satisfy the Court that mineralisation exists. Deposits of the gypsum are exposed on the surface and the area has been tested previously. The economic viability of the project is a matter for the applicant's commercial assessment, but I am satisfied that there is sufficient evidence of mineralisation to warrant the grant of a lease. (c) Will there be an acceptable level of development and utilisation of the resources within the area applied for? From documentation lodged with the application, I am satisfied the applicant has sufficient resources to progress development to an acceptable level. (d) Is the area sought an appropriate size and shape? 95300MLA.WIN 3 -- 2 of 6 -- Warden's Court of Queensland 28 February 2000 There is nothing in the information supplied by the applicant to suggest that the surface area of the land over which the mining lease is sought is not an appropriate size and shape. There is no evidence of any conflict with the boundary of any other tenement and therefore the cost and delay of a survey would appear to be not warranted. (e) Is the term sought appropriate? The term of lease applied for is 20 years. I am satisfied that the term sought is appropriate and will allow for mining and rehabilitation to be completed. The rate of mining will depend on the rate of extraction required to fill orders which may be intermittent. However, a long term lease gives the security of a source of long term supply. The applicant has the option of renewal under s.286 of the act, or surrender at an earlier date under s.309. (f) Has the applicant the necessary financial and technical capabilities to carry on mining operations UDder the proposed mining lease? From the information supplied, I am satisfied the applicant has the necessary financial and technical capabilities or access to those resources to carry out the mining operation. Mining for gypsum is basically an extractive industry utilising shallow open cuts and does not require extensive plant, processing equipment, or large injections of capital. The applicant has 20 years of experience with machinery and trucks and in my opinion will quickly gain the experience necessary to complete the mining operation. [Carr -v- Sirnnovec (1980) 26 SASR 263 at 268, and Pacminex -v- Aust. Nephrite Jade Mines (1974) 7 SASR 401 at 415]. (g) Has the past performance of the applicant been satisfactory? There is no material before me to suggest that the past performance of the applicant has been unsatisfactory. The local Field Officer and Environmental Officer will be available to monitor performance and rehabilitation and report any breach of conditions. The 95300MLA.WIN 4 -- 3 of 6 -- ------- ----- ----- ----------------- - Warden's Court of Queensland 28 February 2000 The proposed mining activity is in an isolated area away from human habitation. The nrining will not have any deleterious effect on any river or creek system. Chemicals will not be used in the mining process. Due to low rainfall and the method of mining, erosion will not be a problem provided the usual controls are in place. There are no other environmental factors of significance that may be adversely effected by the operation. It is observable from other operations that the disturbed crust retains more of the natural rainfall, thereby encouraging the regeneration of native flora. The applicant will be required to backfill where possible as mining progresses, keeping out-standing rehabilitation to a bare minimum where possible. (k) Will the public right and interest be prejudiced? No factors prejudicial to the public right and interest have been identified. There appears to be no endangered flora or fauna within the application area. There are no public utilities on or across the application area. There are no sites of historical interest or aboriginal significance within the area. If any such sites are identified, the EMOS can be amended to put fotward specific site protection or site avoidance strategies. (1) Has any good reason been shown for a refusal to grant the mining lease? The economic viability of this project is a commercial decision of the applicant. When all other aspects of the application and the matters referred to in s.269 are taken into account, I am satisfied that the objects of section 2(a), (b), (c), (d), (e) and (g) will be attained if a mining lease is granted for the term recommended for the following reasons: ♦ A small scale/low impact operation is planned. ♦ It is unlikely that the land applied for is of any interest to a large scale miner. ♦ The location of the proposed mining operation and the proposed method of mining is unlikely to cause environmental or public interest concems about safety. ♦ A realistic security deposit will be imposed to guard against financial failure of the miner to ensure rehabilitation is completed. 95300MLA.WIN 6 -- 4 of 6 -- -- - ----- - - - -- - ------- ----------------- Warden's Court of Queensland 28 February 2000 ♦ The applicant appears to have sufficient experience in the industry to accurately assess the potential of the project. ♦ There is a market for the product and the project will provide employment. In my view, no good reason has been shown for a refusal to grant the lease application (Carr -v- Simnovec, Pacminex -v- Aust Nephrite Jade Mines supra). (m) Is the proposed mining lease operation an appropriate land use, taking into consideration the current and prospective uses of the land? The material indicates that the land is currently used for grazing purposes and appears, on the evidence, to be suitable for no other use. In my view, there appears to be no risk of significant conflict between the current land use, or any prospective land use and the proposed mining operation. The land appears to be Class VII, and post mining will return to Class VII. The proposed mining operation appears, on the evidence, an appropriate land use, taking into account the current and prospective uses of the land. A compensation agreement or detennination of the Court will compensate the landowner for any conflict or loss over land use (s.281). I note that a compensation agreement has been filed with the Registrar in accordance with s.279 of the Act. GENERAL CO:M:MENTS Tiris recommendation is based on an as sessment of the information supplied. Should there be any dispute over damage or loss, or should the miner depart from his plan of op erations or EMOS and cause loss or damage or interruption to the management of the property not envisaged or not foreseen in the terms of the compensation agreement, the parties are at liberty to apply to the Court for a determination or award of compensation, and if necessary, injunctive relief under the powers contained in s.363 (6). Any infrastructure erected on this lease must be removed at the completion of mining and rehabilitation. 95300MLA.WIN 7 -- 5 of 6 -- Warden's Court of Queensland 28 February 2000 RECOMMENDATION: Upon consideration of all the matters set forth in s.269 (4) of the Mineral Resources Act 1989, I recommend that the mining lease be granted under section 234(1) of the MR.A over the whole of the application area for the purpose of mining for GYPSUM for a term of TWENTY YEARS (s.270 (2)). Dated at BRISBANE this 28th day of February 2000. ©2000 95300:MLA.WIN 8 -- 6 of 6 --