Charters Towers Gold Mines N L & Anor, Re [1995] QMW 151

REPORT AND RECOMMENDATION OF WARDEN PURSUANT TO SECTION 269 AND 270 OF THE MINERAL RESOURCES ACT, 1989. IN THE MATTER OF: APPLICATION FOR MINING LEASE NUMBER 1449 IN THE CHARTERS TOWERS MINING DISTRICT. BEFORE: F.W. WINDRIDGE, WARDEN. APPLICANT: CHARTERS TOWERS GOLD MINES N L 70% CHARTERS TOWERS MINES N L 30% REPORT: This Application for a mining lease under section 232 of Part 7 of the Mineral Resources Act 1989 (the act) is for an area of 128.00 hectares of sub-surface area with 17.20 hectares of surface area for the purpose of mining for gold, silver ore, copper ore, lead ore, silica, zinc ore, and associated infrastructure situated in the Charters Towers town 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 pursuant to section 271. All minerals are the property of the crown (s.8). 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). The original application was lodged at the Mining Wardens Office at CHARTERS TOWERS on 31 MAY 1984, and a certificate of application was issued on 7 NOVEMBER 1985. An amended application was lodged [1995] QMW 151 -- 1 of 13 -- at the office of the Mining Registrar at Charters Towers on 2 JUNE 1995, and a certificate of application was issued on 7 JULY 1995, setting the last date for receipt of objections as 28th of JULY 1995. (S.252(2). The objection date was further extended by the Registrar to the 4 AUGUST 1995. No objections were lodged pursuant to Section 260 of the Act. The following matters have been taken into account and considered in making my recommendations pursuant to Section 269. (A) HAVE THE PROVISIONS OF THE ACT BEEN COMPLIED WITH? The material indicates that each of the Applicants is an eligible person as defined in Section 5, and is thus entitled to make the application under Section 233 of the Act. I accept, on the material before me, that the land applied for is within a reserve as defined in the act, namely R. 240 and R 286, but the consent of the Charters Towers City Council and the Department of Minerals and Energy has been lodged, and that there is no relevant permanent building or relevant feature as mentioned in section 238(2) on the land. I find the application is therefore not in respect of land over which, pursuant to Section 238 of the act, a mining lease shall not be granted without the consent of any other person or persons. At the time of marking out and making the application, the applicant -- 2 of 13 -- 3 was the holder of EPM 8150, and MDL 115 and 116.(S.232). A declaration of posting was lodged on the 199 (s.252(9)). 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 have been complied with or substantially complied with (s.392). Service of documents was in accordance with section 399. 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 section 270 of the act. (B) IS THE LAND APPLIED FOR 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 infrastructure is necessary for the winning and treatment of those minerals. I accept the Applicants advice and I am satisfied on the detailed information given by them that the purpose for which the lease is sought is appropriate. The applicants intend to mine a number of -- 3 of 13 -- 4 minerals, the principal mineral being gold. The economic viability of the project is a matter for the applicants commercial assessment, and not a matter for this Court. However, given an efficient operation with good recovery rates even marginal ground would be viable given the current price of gold. (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? I am satisfied the applicant has sufficient resources to develop the land to an acceptable level. The applicant has already developed some of the infrastructure under the MDL. The applicant appears to have access to financial resources which will be sufficient to complete the project. (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 area covers the mineralised zones. The surface areas are required for ventilation purposes and infrastructure. (E) IS THE TERM SOUGHT APPROPRIATE? The term of lease applied for is 25 years. I am satisfied that the term sought is appropriate and will allow for mining and -- 4 of 13 -- 5 rehabilitation to be completed. The term is based on the projected resources and the rate of extraction, given development and production time frames. For projects of this type, longer terms are the norm in order to attract investor confidence and financial backing. The applicant has the option of renewal under section 286 of the act if mining is not completed, or surrender at an earlier date under section 309 if mining and rehabilitation is completed prior to the expiry date. (F) HAS THE APPLICANT THE NECESSARY FINANCIAL AND TECHNICAL CAPABILITIES TO CARRY ON MINING OPERATIONS UNDER THE PROPOSED MINING LEASE? I have no reason not to accept the Applicants advice and I am satisfied that the Applicants have the necessary financial capability and that they have sufficient technical expertise to properly carry on the proposed mining operation under the proposed lease. Financial resources are available from their own cash flows, shareholder funds, or financial institutions. The applicant is currently engaged in mining on other leases in this area, 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 -- 5 of 13 -- 6 of the Applicant has been satisfactory or unsatisfactory. The local Field Officer will be available to monitor performance and rehabilitation. The Inspectorate should monitor the methods adopted for mining, ensuring that industry standards are maintained and all machinery is operated in a safe and competent manner by licensed persons where necessary. (H) IS THERE ANY DISADVANTAGE TO THE HOLDER OF OR APPLICANT FOR EXPLORATION PERMITS OR MINERAL DEVELOPMENT LICENCES. At least one of the applicants held the prerequisite exploration tenure at the time of marking out. There is no evidence that the holder of or applicant for any exploration permit or MDL has been disadvantaged. No objection was lodged on such grounds. The applicants were the holders of the currently existing MDL. (I) WILL THE OPERATIONS TO BE CARRIED ON UNDER THE PROPOSED MINING LEASE CONFORM WITH SOUND LAND USE MANAGEMENT? The land that is surface area is vacant land within the city boundary that was previously used as shafts by other miners at the turn of the century. These old shafts are currently fenced off. The applicant intends to use these for air ventilation shafts when mining progresses into that area. Otherwise the sub surface area extends generally under the town area. The proposed mining operation will cause no significant disturbance to stock or stock watering or management facilities. -- 6 of 13 -- 7 Information has been supplied as to the Applicants 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? The proposed mining activity is located generally under the town of Charters Towers. Mineral treatment activities on site appear to be planned in such a way as to be unlikely to have a deleterious effect on any river system. Chemicals will not be used in the separation process. The ore recovered is to be transported off lease and treated at a treatment plant some ten kilometres distant. There will be no tailings dams on the lease area. All water taken from the mine is to be pumped to and used in the treatment plant. An EMOS has been lodged and accepted by the Registrar in respect of current operations of the applicant. An amended EMOS will be lodged to include this lease in the project. (K) WILL THE PUBLIC RIGHT AND INTEREST BE PREJUDICED? No factors prejudicial to the public right and interest have been identified. From the evidence that is available, it appears that there are no public utilities running on or across the application surface land. The right of way of any person will not be affected. -- 7 of 13 -- 8 There is no evidence to suggest that there are endangered flora or fauna on the application area. There is no evidence to suggest that there are any sites of historical interest or aboriginal significance on the application area. If any such sites are identified, the E.M.O.S. document can be amended to allow for site protection or 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, and not this Court. When all other aspects of the application are taken into account and considered, 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: (1) a large scale operation is planned. (2) it is unlikely that the land applied for is of any interest to a small scale miner. (3) the location of the proposed mining operation and the method of mining is unlikely to cause environmental or public interest concerns. (4) a realistic security deposit, subject to E.M.O.S. discounts if appropriate, will be imposed to guard against financial failure of the miner to ensure rehabilitation is completed. (5) the applicant appears to have sufficient experience in the industry to accurately assess the potential of the project. -- 8 of 13 -- 9 (6) there is a market for the product and the project will provide employment and export income for Australia. To my knowledge there has been no gazettal of the land as claimable land under Section 2.12 of the Aboriginal Land Act 1991. No person claiming any right or interest under "native title" has lodged any objection under Section 260 of the Act. It appears it would not be possible to notify such a person in the normal way of service of a notice. The name of such a person claiming title would be unknown as there is no list or roll of such persons. However, such a person is not put to any disadvantage as the requirement of publication of the application under Section 252(7) is intended to notify any person who does not fall within the definition of "owner" as defined in Section 5 of the Act. The application area is situated under the city of Charters Towers. The surface areas were previously granted as Gold Mining Leases by the State of Queensland. It would appear that this grant has extinguished any "native title" that existed and there would appear to be no grounds for any claim of "native title" by any person ( MABO v Queensland (1992) 66 ALJR 408) Native title having been extinguished by those prior grants, the issue of a mining lease to the lessee will not invoke the native title regimes for compensation, and the applicant miner will not be liable for compensation in respect of any loss of native title. (Sec.8,9, & 10 Native Title (Queensland) Act). -- 9 of 13 -- 10 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.) (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 surface area required is not used for any particular purpose although the application indicates that the reserves are set aside recreational purposes and Geological purposes. The surface are appears 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.279). I note that compensation agreements have been filed in respect of a number of affected landowners, and an agreement ratified by the City Council is due to be lodged shortly. -- 10 of 13 -- 11 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 compensation and if necessary, injunctive relief under the powers contained in Section 363. APPENDICES: The following documents are appended: * Copy of declaration dated 7 August 1995. * Questionnaire completed on 27 September 1995. * Copy COA, APPLICATION and PLAN. * Copy of ABANDONMENT and AMENDMENT of area. RECOMMENDATION: Having dispensed with the hearing and upon consideration of all the matters set forth in section 269 of the act, I recommend to the Minister that the mining lease be granted over the whole of the application area for a term of 25 years. (s.269(4). -- 11 of 13 -- 12 Dated at CHARTERS TOWERS this 27th. day of September 1995. F.W. WINDRIDGE MINING WARDEN. SUMMARY SHEET NUMBER 1449 1449MLA.CHT D1.MD2.9/95 DISTRICT CHARTERS TOWERS WARDEN F W WINDRIDGE CHARTERS TOWERS GOLD MINES N L 70% -- 12 of 13 -- 13 APPLICANT CHARTERS TOWERS MINES N L 30% OBJECTOR NIL AREA 128.00 ha sub surface. 17.2 ha surface. RESOURCE GOLD, SILVER ORE, COPPER ORE, LEAD ORE, SILICA, ZINC ORE, INFRASTRUCTURE TERM 25 years COMPENSATION LODGED RECOMMENDATION GRANT DATE 27 SEPTEMBER 1995. TRANSMITTED DELIVERED. SECTION 269 and 270 MRA. 8,9,10, N.T.(Q) A CATCHWORDS native title. extinguishment. crown reserve. roads reserve -- 13 of 13 --