Arimco Mining Pty Ltd, Re [1998] QMW 62

90139MLA.ISA 1 IN THE WARDEN’S COURT OF QUEENSLAND HELD AT BRISBANE IN THE MATTER OF: APPLICATION UNDER PART 7 OF THE MINERAL RESOURCES ACT 1989 FOR A MINING LEASE NUMBER 90139 IN THE MT ISA DISTRICT BEFORE: MR F W WINDRIDGE, WARDEN APPLICANT: ARIMCO MINING PTY LIMITED REPORT: The applicant seeks a mining lease under the provisions of part 7 of the Mineral Resources Act 1989 (the Act) for the purpose of mining for COBALT ORE, SILVER ORE, MAGNETITE, ZINC ORE, LEAD ORE, GOLD, MOLYBDENUM ORE, IRON ORE, COPPER ORE and SULPHUR, and for the construction of certain infrastructure namely a TREATMENT PLANT, SPOIL HEAPS and ASSOCIATED ACTIVITIES. The application is for surface area of 60.01 hectares and is situated on LOT 345 on MN18, County of MERLIN, Parish of STAVELEY, about 100 kilometres south of Cloncurry. 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. All minerals are the property of the Crown. The grant of a lease does not create any estate or interest in the land, although there is the power to determine title to land. [1998] QMW 62 -- 1 of 8 -- Warden’s Court of Queensland 28 October 1998 90139MLA.ISA 2 The application was lodged at the Mining Registrar’s Office at MOUNT ISA on 23 JULY 1998. A certificate of application was issued on 24 JULY 1998 (s.252 (1)) setting the last date for receipt of objections as 21 AUGUST 1998. (s.252(2)). No objections were lodged pursuant to section 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 section 232 of the Act. I accept, on the material before me, that the land applied for is not within a reserve as defined in the Act, and that there is no relevant permanent building or relevant feature as defined on the land. (s.238(1)). I find that the Application is therefore not in respect of land over which, pursuant to s.238(1) of the Act, a mining lease shall not be granted without the consent of another person or persons. At the time of marking out and lodging the application, the applicant was the holder of EXPLORATION PERMIT 10783 (s.232(1)). A declaration of posting was lodged on 25 AUGUST 1998 (s.252(9)), and service of documents was in accordance with s.399. 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). -- 2 of 8 -- Warden’s Court of Queensland 28 October 1998 90139MLA.ISA 3 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 as defined in section 5 of the Act, and the associated purposes relate to infrastructure required for the winning of those minerals. I accept the Applicant’s advice and I am satisfied on the detailed information given by them that the purpose for which the lease is sought is appropriate. The application area is within a recognised mineral producing area. A gold and copper ore body has been defined by drilling under the exploration permit. The applicant is only required to satisfy the Court that mineralisation exists. (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 develop the land to an acceptable level. The applicant has other leases in the area. However, there will be some preliminary treatment of ore on this lease before removal to another lease for final treatment. (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. The application area covers the mineralised deposit with additional area required for infrastructure purposes. -- 3 of 8 -- Warden’s Court of Queensland 28 October 1998 90139MLA.ISA 4 There is no evidence of any conflict with the boundary of any other tenement. The lease application area has been surveyed. (e) Is the term sought appropriate? The term of lease applied for is 15 years. I am satisfied that the term sought is appropriate and will allow for mining and rehabilitation to be completed. The applicant has the option of renewal under section 286 of the act, or surrender at an earlier date under section 309. (f) Has the Applicant the necessary financial and technical capabilities to carry on mining operations under 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. The applicant is active in the area and has other leases current. The applicant has mined in this area for a number of years and in my opinion has the experience necessary to complete the mining operation. [Carr –v- Simnovec (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 Inspectorate should monitor the methods adopted for mining, ensuring that industry standards are maintained and that all machinery is operated in a safe and competent manner by licensed persons. Prior to the issue of the lease, departmental records should be checked to ascertain if the rent, royalty and rehabilitation history of the applicant is satisfactory. -- 4 of 8 -- Warden’s Court of Queensland 28 October 1998 90139MLA.ISA 5 (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 exploration title at the time of marking out. It does not appear that the holder of or applicant for any other exploration permit or mineral development licence has 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 as having skeletal soils with spinifex grass and native trees. 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. After some preliminary treatment, ore mined on this lease is to be transported to another lease for further treatment. (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 -- 5 of 8 -- Warden’s Court of Queensland 28 October 1998 90139MLA.ISA 6 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 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. It appears there are no public utilities on or across the application area. It appears 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) 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 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 with greater resources. ♦ 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, subject to EMOS discounts if appropriate will be imposed to guard against financial failure of the miner to ensure rehabilitation is completed. -- 6 of 8 -- Warden’s Court of Queensland 28 October 1998 90139MLA.ISA 7 ♦ 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. No person claiming any right or interest under native title has lodged an objection. 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 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 determination of the Court will compensate the landowner for any conflict or loss over land use (s.281). I note that a compensation agreement has not been filed with the Registrar in accordance with s.279 of the Act. This recommendation is based on an assessment of the information supplied. Should there be any dispute over damage or loss, or should the miner depart from his plan of operations 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 damages, and if necessary, injunctive relief under the powers contained in s.363(6). -- 7 of 8 -- Warden’s Court of Queensland 28 October 1998 90139MLA.ISA 8 RECOMMENDATION: Having dispensed with the hearing and 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 and for associated infrastructure for a term of FIFTEEN YEARS (s.270(2)) subject to compensation being settled between the parties or determined by this Court. Dated at BRISBANE this 28 th day of October 1998. F.W. WINDRIDGE MINING WARDEN  1998 -- 8 of 8 --