Dibley & Lane, Re [1993] QMW 97

REPORT AND RECOMMENDATION OF WARDEN PURSUANT TO SECTION 7.27 OF THE MINERAL RESOURCES ACT, 1989-1992. IN THE MATTER OF: APPLICANT: OBJECTORS: REPORT. APPLICATION FOR MINING LEASE NUMBER 40066 IN THE CAIRNS MINING DISTRICT. Robert Leland DIBLEY Michael Barnett LANE Nil. This Application for mining lease for the purpose of mining tin, gold, zircon, corrundum, silver and platinUID is for 80.33 hectares situated on the West Nonnanby River about 11 kilometres east of Lakeland Downs. The land is also required for haul roads, campsite and dams. The Applicants' processing plant will be established on land to be applied for as a mining lease at a central location. The Applicants advised after the issue of the certificate of application that one of the principal minerals intended to be mined is rnonazite. The Applicants will be required to make application to include this mineral in the Mining Lease. [1993] QMW 97 -- 1 of 11 -- --- --- - --· -- --- ---- - 2- The Application was lodged at the Mining Registrar's Office at Cairns on 22 April 1993 and a certificate of application was issued on 4 May 1993 setting the last date for receipt of objections as 1 June 1993. No objections were lodged. The following matters have bee n taken into account and considered by me in making my recommendation: (A) HAVE THE PROVISIONS OF THE MINERAL RESOURCES ACT BEEN COMPLIED WITH? The material indicates that the Applicants are eligible persons. The area applied falls partly within EPM Application 9433 h e ld by the Applicants and EPM Application 9432 held by Graham Edward Elmes. The holder of EPM Application 9432 has given consent to the Mining Lea se Application. I accept, on the material before me, the Application is not in respect of land over which, pursuant to Sect i on 7(6) of the Mineral Resources Act, 1989-1992, a mining l ease shall not be granted without the consent of another person or persons. A declaration of posting was lodged on 15 June 1 993 and -- 2 of 11 -- --- - - - -- -- - ------------------------------- -3- I am sati s fied on the material, including the uncontested information in the application form and the declaration of posting and advertising that all the prov i sions of the Mineral Resources Act, 1989-1992 (other t h an the provisions requiring the hea ring ) have been substantia lly complied with. The hearing i s di spensed wi t h pursuant to section 7 .2 7 of the Act. (B) IS THE LAND APPLIED FOR MINERALISED OR IS THE OTHER PURPOSE FOR WHICH THE LEASE IS SOUGHT APPROPRIATE? The area, according to the Applicant s , is the site of a prev i ous application for mining lease. I accept the Appl i cants' advice that res ul t s of p revious bu lk sampling, t o which they have access, has been confirmed by dish s ampling which i ndi cates gold grades bet ween .2 grams to .6 grams per cubic metre. The Appl icants describe the terrain as hilly, with quartz rock. I accept th e ir advice that the l an d will be suitab l e f or dams i te s in a ssoc i at io n with the planned proc e ssi ng plant . In v iew of the Appl i cant ' s advice I am satisfied that the land appl i ed for is mineralised and that it is suitable f or the p l a cement of tail i ngs and wat er supply dams. I a ccept, in spite of the na tu r e of the terrain and the -- 3 of 11 -- -4- narrowness of the proposed Mining Lease, that the Applicants' will be able to select a suitable place for a carnpsite. (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? The Applicants intend to start wor k in April 1994 when it is expected their working partner, Mr. John Withers, will be on site. The ant i cipated mine life, worked full-time ( wi t h wet s ea sonal interruptions) at a annual 1 50,0 00 cubic metres ext raction rate, is 3 years . There is nothing in the material supplied by the Applicant which indicates that the Applicant s are unable to conduct a min i ng operation at the proposed level. In my view there wi ll be an acceptable level of development and ut i li sa tion of the mineral resources within the area applied for. (D ) IS THE LAND AND THE SURFACE AREA OF LAND IN RESPECT OF WHICH THE MINING LEASE IS SOUGHT OF AN APPROPRIATE SIZE AND SHAPE? The Applicants seek to mine the river bed alluvial deposits . The boundaries of the proposed Mining Lease follow the Rive r closely. -- 4 of 11 -- - - -- ------ -5- There is nothing in the information suppli~d 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 SOOGHT APPROPRIATE? The term of mining lease applied for was 10 years. The Applicants later advised that 5 years is required. There is no estimate by the Applicants as to the extent of the workable deposit but the information given indicates that at the rate the proposed mine is intended to be worked the term of 5 years should be adequate. I am satisfied that the term of 5 years is appropriate. (F) HAS THE APPLICANT THE NECESSARY FINANCIAL AND TECHNICAL CAPABILITIES TO CARRY ON MINING OPERATIONS UNDER THE PROPOSED MINING LEASE? Evi dence has been produced in relation to the Appl icants' financial and technical capacity to carry on mining operations under the proposed lease, and indi cates that the Applicants have access to plant and machinery and funds belonging to a partnership operated by their respective family companie s . -- 5 of 11 -- ----- --- ------ ------------ -------- -6- The partnership appears to be trading profitably but little evidence about its financial standing and the support arrangements between the members of the partnership and the Applicants has been produced. In the circumstances, I recommend that special conditions of lease be imposed to en sur e that sufficient funds are h eld to rectify any environmental disturbance upon the demise of either or both companies. I rec ommend that EMOS Performance Category Discounts not be granted if the Applicants are otherwise entitled to receive such Discounts during the first 5 years of the term, or extended term, of the Mining Lease. There seems to be no reason not to accept the Applicant Dibley's claim of experience as a self employed min er, mainly on tribute, for 15 years. The Applicant Lane is 20 years of age and the mining experience claimed by him is not clear. The App li cants ' working partner, John Withers, is recognised in the nort h ern part of the State as an experienced min er . The Applicants further advise that in du stry consul ta nts will be engaged. I h ave no reason not to accept th e Applicants' advice and, in view of the size of th e proposed operation, I am sat i sfied that the Applicants have the necessary financial capabil i ty an d have sufficient technical expertise to properly -- 6 of 11 -- ------------------------ --- - -7- carry on the proposed mining operation under the proposed lease. (G) HAS THE PAST PERFORMANCE OF THE APPLICANT BEEN SATISFACTORY? There is no material before me to suggest that the past performance of the Applicants has been unsatisfactory. The Applicants and Mr . Withers lay claim to substantia l mining experience in North Queensland tin and gold mining. Departmental records should disclose past poor performance, i f any. (H) WILL THE OPERATIONS TO BE CARRIED ON UNDER THE AUTHORITY OF THE PROPOSED LEASE CONFORM WITH SOUND LAND USE MANAGEMENT? The land appears to be used for cattle grazing and it seems the proposed mining operat io n will not significantly dis t urb the owners' stock or stock watering and stock management facilities. The evidence also suggests that in the operation to be carried on under authority of the proposed mining lease the Applicants will excavate alluvial wash from the River bed (using a 2 cubic metre capacity excavator) and haul the min ed materials to a centrally located treatment plant on an -- 7 of 11 -- -- --- ------------------------------- -8- adjacent mining lease. Rock tailings will be returned to the excavations which will be contoured and spread with topsoil and replanted. There has been no mine working plan submitted but the evidence leaves me with no reason to believe that the proposed mining operations will not conform with sound land use management. (I) WILL THERE EE ADVERSE ENVIRONMENTAL EFFECTS CAUSED BY THE PROPOSE OPERATION, AND IF SO, THE EXTENT THEREOF? The proposed mining activity is in an isolated area away from human habitation. The proposed excavations appear unlikely to affect any river system as most of the mnining activity will take place after the cessation of seasonal river flows. There appear to be no environmental circumstances which should require special conditions of lease to govern the general concept of mining the land applied for . Micro environmental concerns may be addressed in the approval process relating to Plans of Operations and EMOS created if and when a mining development occurs. J) WILL THE PUBLIC RIGHT AND INTEREST BE PREJUDICED? No factors prejudicial to the public right have been -- 8 of 11 -- --- ------ -9- identified. (K) HAS ANY GOOD REASON BEEN SHOWN FOR A REFUSAL TO GRANT THE MINING LEASE? Having taken into account and considered all the matters set out in paragraphs (a) to (1) inclusive of section 7.26(3) of the Mineral Resources Act 1989-1992 I am of the opinion that the matters which weigh against a decision to grant the Mining Lease are: 1. The lack of re li able evidence in support of the Applicant's assessment 0£ quality and quantity of the mineral resource. 2. The unclear situation regarding financial support for the mi n ing operation. When all other aspects o f the Application and the matters set out sect i on 7.26(3) are taken into account and considered I am satisfied that the objects of the Mi n eral Resources Act set out in section 1.3 (a), (b), (c), (d), ( e ) and (g) will be attained i f a Mining Lease is granted for th e tenn and upon the conditions recommended, for the following reasons: (a) The nature of the mineral occurrence is such that i t is suitable for a sma ll scale minin g operation -- 9 of 11 -- ----- -- ------------------------ -10- of the kind intended; (b) It is unlikely that the land applied for is of interest to a large scale miner; (c ) The location o f the proposed mining operation and the method of mining is unlikely to cause environmental or public interest concerns; and (d) A realistic security deposit will be imposed to guard against the financia l failure of the mine r . In my vi ew , on the balancer no good rea s on has been shown for a ref usal to grant th e mining lease. (L) IS THE PROPOSED MINING OPERATION AN APPROPRIATE LAND USE, TAKING INTO CONSIDERATION THE CURRENT AND PROSPECTIVE USES OF THE LAND? The material indicates th a t the land i s currentl y used for catt l e grazing purposes and appear s, on the evidence, to be suitable for no other use apart from mining. In my v iew, no evidence ha s been present ed to show significa nt conflict between the current l a nd use, or any prospective l a nd u se, and the proposed mining operation. The prop o sed mining operation appears, on the ev i dence i n th e se pr o ce e di n gs , an a pprop r iat e land use, taki ng into account the current and p rospective uses of the land . APE'ENDICES -- 10 of 11 -- --- - ------ • -11- The following documents are appended: * * * * * Copy of Declaration of Posting and Advertising; Copy of Questionnaire lodged by the Applicant; Copy of letter of consent by EPM Applicants dated May 31, 1993; Copy of Warden's facsimile transmission dated 21 June 1993; Copy of facsimile transmission from Lan e s Machinery and Finance Centre dated 23rd June , 1993. RECOMMENDATION I recommend to the Honourable, the Minister that the mining lease be granted for a tenn of 5 years subject to the condition recommended in Part (F) above. Mareeba 24 June 1993 Warden -- 11 of 11 --