Project Overview
Client
Major ASX listed Mining and Resources Company
Property Type
Mining tenements including Exploration Licences, Mining Leases and Miscellaneous Licences
Reason for Service
Native Title Compensation Purposes
Preston Rowe Paterson was instructed by Allen and Overy, acting for Fortescue Metals Group Ltd, to provide an independent valuation of land interests subject to multiple mining tenements within the Solomon Hub in the Pilbara region of Western Australia, for the purposes of assessing compensation under the Native Title Act 1993 (Cth)
The engagement formed part of Federal Court proceedings and required a retrospective valuation framework that was legally robust, transparent and capable of withstanding expert scrutiny.
The assessment was required to be consistent with established High Court authority, including the principles arising from Timber Creek, and involved consideration of statutory assumptions, historical grant dates and the exclusion of mineral rights and mining improvements.
The valuation evidence was prepared to support court determination and expert evidence processes.
Summary of Scope of Services
Preston Rowe Paterson was engaged to provide independent valuation services in support of native title compensation proceedings.
The scope of services included:
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Determination of the market value of land interests subject to multiple mining tenements
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Assessment undertaken on a freehold equivalent basis at the date of grant of each tenement
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Exclusion of mineral rights and mining improvements in accordance with statutory requirements
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Retrospective valuation analysis across multiple historical grant dates
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Consideration of overlapping tenements and reconciliation of land areas
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Adoption of a valuation methodology consistent with High Court authority and native title compensation principles
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Preparation of valuation evidence suitable for Federal Court proceedings and expert review
Asset Overview:
The valuation related to land interests underlying a portfolio of mining tenements located within the Solomon Hub mining precinct in the Pilbara region of Western Australia.
The land is situated within the Yindjibarndi native title claim area and comprises remote rural land with pastoral characteristics.
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Number of Tenements: 36
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Total Land Area: Approximately 89,156 hectares net of overlapping interests
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Location: Solomon Hub, Pilbara region, Western Australia
The valuation was undertaken on a freehold equivalent basis, excluding mineral rights and mining improvements, in accordance with statutory assumptions relevant to native title compensation.
Valuation Methodology
A Direct Comparison Approach was adopted, supported by extensive analysis of pastoral station sales across the Pilbara region.
Key elements included:
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Analysis of comparable pastoral lease sales
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Adjustment of leasehold sales to an equivalent freehold basis
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Indexation of sales evidence to relevant tenement grant dates using accepted agricultural indices
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Detailed land quality assessment utilising satellite imagery and aerial inspection
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Application of consistent rates per hectare by land quality classification
The highest and best use was assessed as continued rural/pastoral use, consistent with prevailing land characteristics and statutory assumptions.
This engagement demonstrates Preston Rowe Paterson’s expertise in:
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Native title compensation valuation, including the assessment of land value in accordance with the Native Title Act 1993 (Cth) and relevant High Court authority
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Complex statutory valuation matters, requiring careful application of legislative assumptions and judicial principles to valuation methodology
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Retrospective valuation analysis, involving multiple historical grant dates and the reconciliation of market evidence across different valuation periods
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Large scale portfolio valuations, encompassing numerous mining tenements with overlapping interests across extensive landholdings
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Rural and resource related land valuation, with detailed consideration of land use, land quality and highest and best use assumptions in remote locations
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Court and litigation support, including the preparation of valuation evidence that is robust, transparent and suitable for Federal Court proceedings and expert scrutiny
Approximately
89,156
hectares net of overlapping tenement interests across the Solomon Hub mining precinct
A total of
36
Mining tenements assessed for native title compensation purposes in accordance with the Native Title Act 1993 (Cth)
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