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1
Mineral Resources Amendment
MINERAL RESOURCES AMENDMENT
BILL 1998
EXPLANANTORY NOTES
Title of the Bill
Mineral Resources Amendment Bill 1998
Objectives of the Legislation
The main objective of the Bill is to amend the Mineral Resources Act
1989 to provide a legislative mechanism to allow disputes arising from the
At Risk Agreement to be heard in the Land Court.
The At Risk Agreement was made between representatives of the mining
and rural industries and endorsed by Cabinet on 5 April 1988. . The At
Risk Agreement provides for land holders, who are deemed to be suffering
hardship because of the existence of a mineral resource and the
announcement of the intention to mine, but where development time frames
are unknown, to be offered an option to purchase at fair market value by the
holder of the overlying Mineral Development Licence or Mining Lease.
Hearing of claims of hardship under the At Risk Agreement is the
responsibility of a tripartite committee comprising a Department of Mines
and Energy chairman, two representatives of the mining industry and two
representatives of the rural industries. The committee meets as required for
the purpose of monitoring the scheme and where necessary acts as a
mediator to bring about mutually satisfactory resolution of hardship claims.
The last paragraph of the At Risk Agreement states:
"Provision is made for either party to refer the matter to the Land Court
for determination of:
· whether hardship exists; and
· fair market value"
However legal advice has been received that there is presently no
statutory or legislative mechanism for referral of these matters to the Land
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Mineral Resources Amendment
Court. This Bill seeks to enable referral to the Land Court for such
determinations.
Administrative Cost
There is negligible cost associated with this Bill. As only one case of
hardship remains unresolved in the ten years since the At Risk Agreement
came into effect, resourcing impacts on the Land Court will be minimal.
Fundamental Legislative Principles
The Bill is consistent with fundamental legislative principles, one of
which is whether legislation is consistent with principles of natural justice.
This Bill seeks to redress the current flaw in the intended due process of the
At Risk Agreement and provides natural justice to land holders who are
suffering hardship as defined by the Agreement.
Consultation
Consultation occurred with the following government agencies and
non-government organisations:
Government agencies
Department of Justice
Department of Premier and Cabinet
Department of Economic Development and Trade
Department of Primary Industries
Department of Natural Resources
Office of the Queensland Parliamentary Counsel
Land Court
Non-government associations
Cattlemen's Union of Australia
Queensland Mining Council
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Mineral Resources Amendment
Australian Canegrowers Council
Queensland Farmers Federation
Queensland Graingrowers Association
United Graziers' Association of Queensland
NOTES ON CLAUSES
Part 1 - PRELIMINARY
Clause 1 The title of this Bill is the Mineral Resources Amendment Act
1998.
Clause 2 This Act amends the Mineral Resources Act 1989.
Part 2 - AMENDMENT OF MINERAL RESOURCES
ACT 1989
Clause 3 This Clause amends Section 5 by inserting a definition of "At
Risk Agreement". The Agreement includes the Agreement as
amended from time to time and endorsed by Cabinet.
Clause 4 Clause 4 amends section 194 of the Act, so that it is a condition
of Mineral Development Licences granted after the date of this
amendment that the holder complies with the At Risk
Agreement.
Clause 5 Clause 5 inserts a new section into Part 6, as Section 194A(1),
to provide a legislative mechanism for disputes between the
holder of a Mineral Development Licence and a land holder,
arising from the At Risk Agreement, to be heard and
determined by the Land Court. The issues to be heard and
determined are: whether hardship, as defined in the At Risk
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Mineral Resources Amendment
Agreement, exists and the fair market value of the land in
question, in relation to an option to purchase, as provided for in
the Agreement.
New subsection (2) provides that a Land Court proceeding
relating to whether hardship exists is to be way of review of a
decision of the At Risk Committee.
New subsection (3) provides that the Land Court must take into
account the evidence considered and the decision reached by the
At Risk Committee which heard the hardship case.
In making its determination, the Land Court is to consider any
evidence collected and any documented deliberations and
determinations made by the At Risk Committee. This is ensure
that the Land Court has all the evidence collected through the At
Risk process and that any appeal regarding whether hardship
exists takes into account the determination of hardship by the
At Risk Committee. The At Risk Committee would normally
firstly establish whether hardship exists in order to continue its
deliberations. The Committee comprises two representatives
of the rural industry, two representatives of the mining industry
and the Deputy Director-General as the Chair of the
Committee. A determination on hardship may be unanimous
or by a majority. This information may be of some use to the
Land Court in its deliberations, as may be any information on
land valuations or other related matters.
New subsection (4) provides for admission of copies of the At
Risk Agreement in evidence at the hearing.
New subsection (5)(a) provides, for past hardship claims under
the At Risk Agreement and for those claims currently
unresolved, one year from the date of this Act for referral of
any disputes to the Land Court.
New subsection (5)(b) provides, for future hardship claims
under the At Risk Agreement, one year from the date of the
decision of the At Risk Committee for referral of any disputes
to the Land Court.
New subsection (6) defines "committee" as the At Risk
Committee mentioned in the At Risk Agreement.
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Mineral Resources Amendment
Clause 6 Clause 6 amends section 276 of the Act, so that it is a condition
of Mining Leases granted after the date of this amendment that
the holder complies with the At Risk Agreement. The At Risk
Agreement only applies to those Mining Leases which do not
have full surface rights.
Clause 7 Clause 7 inserts a new section into Part 7, as Section 278A(1),
to provide a legislative mechanism for disputes between the
holder of a Mining Lease and a land holder, arising from the At
Risk Agreement, to be heard and determined by the Land
Court. The issues to be heard and determined are: whether
hardship, as defined in the At Risk Agreement, exists and; the
fair market value of the land in question, in relation to an option
to purchase, as provided for in the Agreement.
New subsection (2) provides that a Land Court proceeding
relating to whether hardship exists is to be way of review of a
decision of the At Risk Committee.
New subsection (3) provides that the Land Court must take into
account the evidence considered and the decision reached by the
At Risk Committee which heard the hardship case.
In making its determination, the Land Court is to consider any
evidence collected and any documented deliberations and
determinations made by the At Risk Committee. This is ensure
that the Land Court has all the evidence collected through the At
Risk process and that any appeal regarding whether hardship
exists takes into account the determination of hardship by the
At Risk Committee. The At Risk Committee would normally
firstly establish whether hardship exists in order to continue its
deliberations. The Committee comprises two representatives of
the rural industry, two representatives of the mining industry
and the Deputy Director-General as the Chair of the
Committee. A determination on hardship may be unanimous
or by a majority. This information may be of some use to the
Land Court in its deliberations, as may be any information on
land valuations or other related matters.
New subsection (4) provides for admission of copies of the At
Risk Agreement in evidence at the hearing.
New subsection (5)(a) provides, for past hardship claims under
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Mineral Resources Amendment
the At Risk Agreement and for those claims currently
unresolved, one year from the date of this Act for referral of
any disputes to the Land Court.
New subsection (5)(b) provides, for future hardship claims
under the At Risk Agreement, one year from the date of the
decision of the At Risk Committee for referral of any disputes
to the Land Court.
New subsection (6) defines "committee" as the At Risk
Committee mentioned in the At Risk Agreement.
Clause 8 Clause 8 Inserts a new part (12: "Further Transitional
Provisions") referring to the At Risk Agreement. The clause
declares as valid, every condition that requires the holder to
comply with the At Risk Agreement, contained in mineral
development licences and mining leases granted prior to the
date of this amendment.
© The State of Queensland 1998