Land Court makes recommendation for grant of mining lease for small-scale gold and silver mine

In Brief

The matter of Pickering, Re [2020] QLC 29 concerned an application brought by Mr Pickering (Miner), the proponent of two mining leases, and the objections to them made by Chelsea on the Park Pty Ltd (Landowner), the owner of the land the subject of the applications.

As a consequence of the objections, the Land Court was obliged to consider whether to recommend the grant of the applications (in whole or in part and / or subject to conditions) having regard to each of the matters set out in s.269(4) of the Mineral Resources Act 1989 (Qld) (Mineral Resource Act).

Objections of the Landowner

The Landowner objected to the mining leases on the following grounds:

1. The areas are not sufficiently mineralised to justify the grant of the mining leases;
2. The mining leases will not result in an acceptable level of development and utilisation of the mineral resources;
3. The size and shape of the mining leases are not appropriate;
4. The Miner has not demonstrated that it has the necessary financial or technical resources to mine the mining leases;
5. Granting the mining leases will cause soil erosion and other negative impacts to the surface water and environmental values of the mining lease areas; and
6. Mining is not an appropriate use of the land taking into account the current and prospective uses of the mining lease areas.

Determination of the Land Court

The Land Court held as follows in relation to the objections advanced by the Landowner:

1. The areas are sufficiently mineralised on the basis of a strong and long history of gold mining in the area, recent and positive prospecting results, and expert geologist evidence confirming the area is sufficient mineralised for small-scale mining;
2. Having regard to the mine development plan it was clear that the mining leases contemplate an acceptable level of development and utilisation of the mineral resources in the mining lease areas;
3. The Miner’s past experience mining in the area, coupled with his access to technical support, demonstrates that it has the necessary financial and technical resources to mine the mining leases;
4. Compliance with the standard conditions of the environmental authority will regulate and minimise erosion and soil instability; and
5. On the basis that grazing and mining had co-existed in the area for more than a century, mining was an appropriate use of the land.

The Land Court also considered the other matters set out in s.269(4) of the Mineral Resources Act but found there to be no good reason that the mining leases should be refused. It therefore recommended that the mining leases be granted.

Implications

It is important to note that the court will assume that an applicant for a mining lease and environmental authority will comply with the conditions of its approvals. Therefore, when environmental impacts are able to be addressed by the imposition of appropriate conditions, this will likely be sufficient for the purposes of the court.