West Australian court decision leaves all mining leases insecure and subject to claim jumpers

by Robert J Lee

A West Australian mining company, Kimberley Minerals,  was accused of claim-jumping and fraud in the WA Mining Warden’s Court by advertising for development funds for a lease it did not own.

The decision handed down by Warden John O’Sullivan on June 18 has rendered all leases insecure, valueless and wide open to claim jumping according to Spinifex Abrasives Queensland shareholder Mr John Koehler.

Kimberley Minerals CFO, Peter Newcomb. The company has not replied to a query about directors’ relationship with Warden John O’Sullivan

The company had spent considerable funds on exploration drilling and attracting investors over a number of years but this fact was disregarded by Warden O’Sullivan.

“Warden O’Sullivan ruled off-lease, related costs such as prospectus developments, engineering, environmental assessments and marketing cannot be allowed as a lawful form of required expenditure which means a lease can be forfeited at the whim of a mining warden without any basis at law,” Mr Koehler said.

“This ruling means that field work would have to be repeated endlessly and needlessly, long after completion of necessary exploration or risk having the tenement forfeited.

“This ruling has grave implications for mining-related Australian Taxation Office claims since 1978.”

Photographic evidence showing Kimberley Minerals staff trespassing on Spinifex Abrasive’s lease to take samples then being falsely represented in a prospectus and advertised on LinkedIn was tabled in the court.

This photographic evidence was not denied by Kimberley Minerals.

Warden O’Sullivan in his judgement ignored this damning evidence which if proven under the 1978 Mining Act prohibits an offender from holding any leases in Western Australia.

Jonathon King, Exploration Manager

Dr Derek Fisher, Chairman Kimberley Minerals

Arguing the case was Spinifex Abrasives director and geologist Laurie Molloy who said he was forced to appear in court by Warden O’Sullivan in spite of a medical certificate describing serious injuries he received after a fall.

“The Warden said he would issue a warrant for my arrest if I didn’t show up in court. When I got to court I took off my shirt to show the Warden the physical injuries I had which slowed me down considerably,” Mr Molloy explained.

Kimberley Minerals did not answer a query from Cairnsnews about any relationship between its company directors and Warden O’Sullivan after speculation of widespread corruption in the mining industry following the Warden’s finding.

The company did not reply to a query if it had continued to publicly or otherwise source development funds from investors for the disputed lease since the court hearing in November 2019.

Warden O’Sullivan ordered the lease be forfeited to Kimberley Minerals.

About Editor, cairnsnews

One of the few patriots left who understands the system and how it has been totally subverted under every citizen's nose. If we can help to turn it around we will, otherwise our children will have nothing. Our investigations show there is no 'government' of the people for the people of Australia. The removal of the Crown from Australian Parliaments, followed by the incorporation of Parliaments aided by the Australia Act 1987 has left us with corporate government with policies not laws, that apply only to members of political parties and the public service. There is no law, other than the Common Law. This fact will be borne out in the near future as numerous legal challenges in place now, come to a head soon.

Posted on July 11, 2020, in WA mining court and tagged , , , , . Bookmark the permalink. 4 Comments.

  1. Congratulations Cairns News . keep on the tail of these crooks . cheers


  2. WA mining law requires expenditure requirements to be met EACH year. Excess expenditure cannot be carried forward. The Holder should have applied for expenditure exemption during year. Raising funds is a valid reason.
    Lots cowboys in the mining game.
    The Mining Act is clear, use it or lose it.


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