TUTORIAL QUESTIONS TOPIC 1 - INTRODUCTION TO LAND & TITLE Activity 1.1 Peter is the lessee of a 1000-hectare pastoral property used for grazing cattle registered in Peter's name under the Land Title Act 1994. Mineral Wealth Ltd hold a mining lease over 10 hectares of that land wishing to use it to mine gold. Consider the following questions: 1. Who owns the gold under the surface of Peter's land? - look at s8 of the Mineral Resources Act 1989 (Qld) and s 21 of the Land Act 1994. The Crown owns the gold under Peter's land (s 8 Mineral Resources Act). Gold falls within the definition of 'mineral' in section 6 of the Act. The right to the gold is not granted by the grant of the fee simple estate by the Crown. The title is subject to Crown reservations e.g. mineral under the surface of the land and public roads passing through the land. Section 21 of the Land Act 1994 provides that each deed of grant issued under the Act is subject to the reservations and conditions authorised or required under the Act or another Act. A reservation is a type of condition of a grant (See City of Keilor v O'Donohue (1971) 126 CLR 353 at 366 per Windeyer J). The gold is owned by the Crown until extracted from the mine. Once extracted it becomes the property of Mineral Wealth Ltd and Peter never has any interest in it at any time. Royalties are paid to the Queensland Government, not to the owner of the freehold. The royalty rate is set out in the Mineral Resources Regulation 2013. [Note that an environmental authority (i.e. an additional permit to the mining lease) will also need to be issued by the Environment Minister under the Environmental Protection Act 1994 before any mining can commence. The Federal Government may have an interest in the mining if it impacts a world heritage site, underground water reserve (for large coal mines only) nationally threatened species (flora or fauna), or involves the winning and exportation of uranium. Commonwealth approval to mine will also therefore be needed.] 2. Can Peter prevent Mineral Wealth Ltd from entering his leasehold area to carry out mining operations? - look at s235 of the Mineral Resources Act 1989 (Qld) No. Peter cannot legally prevent Mineral Wealth Ltd from entering the land for the purposes of mining the gold providing Mineral Wealth Ltd observes the conditions of its mining lease issued under the Mineral Resources Act. At common law this would be a trespass, but Mineral Wealth Ltd has statutory rights which override the common law. Section 235 of the Mineral Resources Act provides: " ... during the currency of a mining lease, the holder of the mining lease and any person who acts as agent or employee of the holder (or who delivers goods or substances or provides services to the holder) for a purpose or right for which the mining lease is granted-
(a) may