Fazzari, Re [2000] QMW 22

IN THE WARDEN'S COURT OF QUEENSLAND HELD AT BRISBANE IN THE MATIER OF: BEFORE: APPLICANT: REPORT: APPLICATION UNDER PART 7 OF THE 1v.1INERAL RESOURCES ACT 1989 FOR A MINING LEASE (NUMBER 60307) JN TIIE QUILPIE DIS1RICT MR A J CIDLCOTT, ACTING WARDEN FRANK FAZZARI ., . The applicant (hereinafter referred to as the miner or applicant miner) seeks a mining lease under the provisions of Part 7 of the Mineral Resources Act 1989 (hereinafter referred to as the MRA or the Act) for the pUipose of mining for OPAL. The application is for a surface area of 14.634 hectares and is situated on LOT 447 on PH 895, PH 10/447 County of WINDULA, Parish of TUNA, being approximately 46 kilometres west of Eromanga. Access is to be gained through the same area. 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. Save 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 60307MLA.QUI 1 [2000] QMW 22 -- 1 of 6 -- --- - -- - ------- -------- Warden's Court of Queensland 25 January 2000 to the provisions of the Integrated Planning Act, being exempt from the provisions of the Local Government Planning and Environment Act 1990 by virtue of s.319 (Part 8) of the MRA. The application was lodged at the Mining Registrar's Office at QUILPIE on 19 October 1999. A certificate of application was issued on the same date (s.252 (1)) setting the last date for receipt of objections as 16 November 1999 (s.252(2)). No objections were lodged pursuant to s.260(1) of the Act. The following matters have been taken into account and considered in making my recommendations. (s.269(4)). (a) Have the provisions of the Act been complied with? The material indicates that the Applicant is an eligible person as defined in section 5 of the Act and is entitled to make the application under s.232 of the Act. The application area is not located on or forming part of any reserve. I find that the application is therefore not in respect of land over which, pursuant to s.238(1) of the MRA, a mining lease shall not be granted without the consent of another person or persons. There is no relevant permanent building or relevant feature on the land as defined in s.5 requiring the consent of any person (s.238(1)). At the time of marking out and lodging the application, the applicant was the holder of Prospecting Permit 60942 (s.232(1)). A declaration of posting was lodged on 23 December 1999 (s.252(9)), and service of documents was in accordance with s.399. I am satisfied, on the material, including the illlcontested 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). 60307MLA.QUI 2 -- 2 of 6 -- Warden's Court of Queensland 25 January 2000 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 resources sought are minerals (s.5), and that the proposed infrastructure is necessary to assist in the winning of those minerals. (s.234(1)). 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 opal bearing. The Applicant is required to satisfy the Court that mineralisation exists. 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? There is nothing in the information supplied by the Applicant to suggest that the surface area of the land in respect of which the mining lease is sought is not an appropriate size and shape. (e) Is the term sought appropriate? 60307MLA.QUI 3 -- 3 of 6 -- - ----------- ------------ Warden's Court of Queensland 25 January 2000 (h) Is there any disadvantage to the holder of or applicant for exploration permits or mineral development licences? The Applicant was the holder of the relevant pre-requisite title at the time of marking out. It does not appear that the holder of or applicant for any other exploration permit or mmeral development licence bas been affected. (i) Will the operations to be carried on under the proposed lease conform with sound land use management? The land appears to be used for low intensity grazing under favourable conditions, and it seems the proposed mining operation will cause no significant disturbance to stock or stock watering or management facilities. The general nature of the land is described in the Field Officer 's report. There is no arable top soil. Rainfall is low. Stock fodder is generally of poor quality on the application area with little or no fodder in deficit rainfall years. Information has been supplied as to the Applicant's site management proposals. The evidence leaves me with no reason to believe that the proposed mining operations do not conform with sound land use management. (j) Will there be adverse environmental effects caused by the proposed operation, and if so, the extent thereof? An Environmental Management Overview Strategy (EMOS) has been lodged with the Registrar and accepted under delegation, subject to any recommendation of this Court and any further requirement of the Minister. The proposed mining activity is in an isolated area away from human habitation. The mining 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. There are no other environmental factors of significance which 60307MLA. QUI • 5 -- 4 of 6 -- -------------------------------------- Warden's Court of Queensland 25 January 2000 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 outstanding 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 forward specific site protection or site avoidance strategies. (l) Bas 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. While prices for opal are currently lower than in previous years, there appears to be an upswing in interest from buyers who report they cannot get enough stone to meet their requirements. When all other aspects of the application and the matters referred to in section 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 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 concerns about safety. ♦ A realistic security deposit will be imposed to guard against financial failure of the miner to ensure rehabilitation is completed. 60307MLA.QUI 6 -- 5 of 6 -- ------------------------------------- Warden's Court of Queensland 25 January 2000 RECOMMENDATION: Upon consideration of all the matters set forth in s.269(4) of the Act, I recommend that the mining lease be granted over the whole of the application area for the purpose of mining for OPAL for a term of TEN (10) YEARS (s.270(2)), subject to compensation being settled between the parties or determined by this Court. Dated at BRISBANE this 25 day of January 2000. A.J. CIDLCOTT ACTING MINING WARDEN @ 2000 60307MLA.QUI 8 -- 6 of 6 --