Carman v Cook Shire Council [1990] QMW 6

I ., IN TH WARDENS COURT OF UEENSLAND HELD ~ ..~6.I~S BEFORE: WILLIAM SAMUEL CHRISTENSEN, ESQUIRE, WARDEN. IN THE MATTER OF: APPLICANT: OBJECTORS: DATE OF HEARING: DECISION. APPLICATION FOR MINING LEASE NUMBER 1376 (COOKTOWN) IN THE CAIRNS MINING DISTRICT. JOHN CHARTERS CARMAN COOK SHIRE COUNCIL 5th November, 1990 This Application for mining lease, for the purpose of mining gold and for establishment and operation of a treatment plant, is for 25 hectares situated on the Palmer River between the junctions of Sandy Creek and Cradle Creek. The Application was lodged at the Wardens Office at Cooktown on 21st September, 1989 and a certificate of application [1990] QMW 6 -- 1 of 6 -- -2- was issued on the 4th May, 1990 setting the matter down for hearing in the Wardens Court on the 5th September, 1990. The Application is deemed under Clause 10(3) (b) of the Second Schedule to the Mineral Resources Act, 1989-1990 to be an application for mining lease under that Act. The additional information required by paragraph (d) of Clause 3(10) has been . lodged by the Applicant. An objection was lodged by the Cook Shire Council but, as indicated in the letter of objection, no appearance was entered on behalf of the Council. I am satisfied, on the evidence, inc(uding the uncontested information in the application form and declaration of posting and advertising, that all the provisions of the Mineral Resources Act, 1989-1990 (other than section 7(1)) have been complied with. Upon giving consideration to the question whether the area of land applied for is mineralised, or whether the other purposes for which the lease is sought are appropriate, I accept the evidence of Applicant, who is the only person called to give evidence in support of the Application. The only mineral sought to be mined is gold. The Applicant has held a one-third share in Mining Lease 1032 immediately downstream from the ground applied for since 1984. He has worked Mining Lease 1032 since that time and says that the recovery rates are in the vicinity of one ounce per 100 cubic metres. He also says that he has received information from the operator of Mining Lease 711, a short distance upstream, which leads him to believe that the average -- 2 of 6 -- ,. -3- recovery rate of gold from that portion of the River is one ounce to 70 cubic metres of material. The witness says that panning carried out by him indicates that the ground is mineralised. The south-western boundary of the area applied for takes in a ridge above the river flood level, through which three gullies run to join the River. It is the Applicant's intention to construct tailings and water supply dams and a treatment plant in that area. I am satisfied that the land applied for is mineralised and -, ( the other purposes for which the lease is sought are appropriate. '-.. . / The Applicant intends to work the mineral deposit with a 22 tonne Hitachi excavator (under contract), a 12 metre capacity M.A.N. diesel truck and an M.F.60 backhoe. He also owns a suitable treatment plant together with an electricity generation set powered by a Lister 25KVA diesel engine which will be used on site. Some additions to the treatment plant are intended but, on the whole, the Applicant owns most of the plant and machinery necessary to carry on the proposed mining operation. I have no reason to reject the Applicant's assessment that the expected recovery rate will be in excess of one ounce per 100 cubic metres and that on current gold prices his proposed operation will be viable. The Applicant expects that mining will not commence within one year as all preparatory earth works and establishment of plant will now have to wait for the passing of the wet season. In my view there will be an acceptable level of development and utilisation of the mineral resources within the area applied for. -- 3 of 6 -- -4- The evidence suggests that the surface area of the land in respect of which the mining lease is sought is of an appropriate size and shape. The boundaries take in the north-eastern bank of the watercourse and extend beyond the south-western bank to enclose sufficient area for establishment of water storeage, tailings disposal and treatment works The term of lease applied for is 21 years. In view of the evidence that the expected life of the mine is eight years I am of the opinion that a ten year term is more appropriate. While I have no reason not to accept the Applicant's view that mineral deposits will form in sections of the watercourse during annual flooding, I believe it is appropriate that mineralisation of the worked out ground be assessed at the end of the initial term, when renewal of the lease may be considered. Evidence has been produced in relation to the Applicant's financial and technical capabilities to carry on mining operations under the proposed lease. In that regard I accept the Applicant's advice that his current liquid assets are about $50,000. I also conclude from the evidence that the Applicant appears to have sufficent unencumbered assets upon which to support an adequate level of borrowing; should loan funds be required; to pay for establishment costs. I also note the evidence that the Applicant has been actively engaged in hand mining during the years 1980 to 1983 and, since then, in partnership in an alluvial gold mining operation downstream from the area applied for by the Applicant. I accept his evidence that average annual returns from his share of that venture (after deduction of all expenses, including all on-site living costs) -- 4 of 6 -- -5- amount to $15,000. I am satisfied that the Applicant has the necessary financial and technical capabilities to carry on mining operations of the size and nature envisaged under the proposed mining lease. There is no material before me to suggest that the past performance of the Applicant has been unsatisfactory. The evidence suggests that the operation intended under authority of the proposed mining lease will be excavation of mineral bearing material from the bed of the watercourse, from where it will be transported to high ground adjacent to the River for sluicing. Waste materials will be trapped in storeage dams above flood level. The evidence also suggests that the land beside the River is marginal grazing country only, and mining the section of the River applied for will not interfere with waterholes used by the few stock in the vicinity. There will be destruction of trees standing in the bed of the River, but it appears, on the Applicant's view, no commercial timber will be destroyed. A mine working plan has not be formulated at this stage. However, the evidence leaves me with no reason to believe that the propose mining operations will not conform with sound land use management. There are no environmental factors of significance indicated in the evidence or in the Preliminary Environmental Advice which may be adversely affected by the proposed mining -- 5 of 6 -- -6- operation. No factors prejudicial to the public right have been identified. The grounds of objection lodged by the Cook Shire Council are insufficiently defined to be taken into account for this purpose. The evidence indicates that the land is currently used for grazing of sparse native grasses. The land appears, on the evidence, to be suitable for no other purpose. 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, to be an appropriate land use, taking into account the current and possible uses of the land. In my view, no good reason has been shown for a refusal to the grant the mining lease .. I recommend to the Honourable, the Minister that the mining lease be granted. Mareeba, 7th November, 1990. Warden. -- 6 of 6 --