Guide to Landowners

The following is an extract from the Environmental Defenders Office Fact Sheet: Topic 4: Natural Resources: 4.1 Mining

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The Mining Act provides a degree of protection for agricultural land. Owners and occupiers of private land, or crown land under a pastoral lease, may object to a mining lease over the surface of the land if their land is agricultural land. The Director-General of the Department of Primary Industries decides whether land is 'agricultural land' according to factors listed in Schedule 2 of the Mining Act.

The Mining Act also provides protection for 'improved land', which is defined to include:
• land within 200 metres of a house or 50 metres of a garden, and
• a building, dam, reservoir, contour or graded bank, water disposal area, soil compensation work or other valuable structural work.

People who occupy improved land must consent before holders of exploration licences or assessment leases can start work. The Minister can not grant leases over the surface of improved land if owners and occupiers refuse to consent. However, the Minister can grant leases that apply underneath the surface of the land without consent from the owners and occupiers.

Compensation
Landowners may be entitled to compensation if mining affects their farming activities or their land. Landowners and occupiers who are unable to reach agreement with the mining company may apply to the Mining Warden for compensation. The maximum compensation available is the market value of the land, including the value of buildings, structures or other works. A party who is dissatisfied with the Mining Warden's decision can appeal to the District Court.

Compensation may also be available for damage to improvements and household items caused by subsidence from underground coal mining under the Mine Subsidence Compensation Act 1961.

Mining companies usually try to make private arrangements with landowners. Companies may offer to buy the land needed for mining at twice the market value. Although this appears generous, landowners may be disadvantaged if the property market is depressed, because they are not able to choose the time to sell. Landowners must also consider the cost of buying another property, including moving, loss of income during the move and stamp duty.


Also See: Minerals Exploration & Mining Titles Fact Sheet (PDF)