MARKETS

Land access headaches in NSW

A NEW South Wales Supreme Court ruling against BHP Billiton's Caroona coal project has spread unc...

Blair Price
Land access headaches in NSW

While some might champion the underdog farmers who found a legal technicality to remove BHP from their land in the Liverpool Plains, mining companies are now obliged to chase down mortgage providers and even electricity suppliers for access agreements as a result.

Although the state’s Mining Act gives a licence holder exploration rights on private property, the court found the legislation also defined a landholder as a registered person “having an interest in the land”

BHP subsequently lost the case because it did not ink access agreements with the banks that provided mortgages over the concerned property.

Last week, Rio Tinto shelved a $A5-6 million exploration program for its Northparkes copper-gold mine as further access agreements are required.

Northparkes general manager Craig Stegman told the ABC it had taken several months to get 178 voluntary access agreements with landowners but more title searches were underway to identify all those with a registered interest in the property.

A contract for 12 positions was also cancelled, according to the report.

NSW Farmers Association president Charles Armstrong said the mine’s decision to suspend exploration because of the court ruling was of great concern.

“Northparkes could easily confirm the certainty of their existing agreements by notifying any mortgagees or others mentioned on title,” he said.

“All it could take is a couple of extra letters or a phone call from the mining company.”

NSW Minerals Council chief executive Dr Nikki Williams begged to differ.

“The requirement is not a mere duty to consult, nor is it a matter of a simple phone call or a quick note to other registered parties,” she said.

“Rather, all those with a registered interest in the land must negotiate, agree and sign up to the terms and conditions of a single, new access agreement.

“Whilst it’s unclear how this judgement is a victory for landowner property rights, what is clear is that it’s bureaucratic, time-consuming, will draw the legal profession into what were previously relatively straightforward negotiations and it gives all other registered interests equal control over what happens on someone's land.”

China Shenhua Energy does not face the same problems with drilling access at its Watermark coal project near Gunnedah.

Shenhua has acquired at least 15 properties in the project area and plans to acquire a total of 31.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production