Mineralogy Pty Ltd and Adani Mining Pty Ltd entered a royalty deed concerning Adani’s Carmichael Coal Mine. The deed restricted Adani’s right to grant an encumbrance over its rights including under the royalty deed. The deed also contained a dispute resolution clause under which all disputes could be referred to expert determination.
The parties fell into dispute concerning encumbrances Adani wanted to grant to its financiers, and Adani referred the dispute the expert determination. Following the referral, the President of the Queensland Law Society nominated an expert to determine the dispute.
After its commencement, Mineralogy sought to enjoin the continuation of the expert determination on grounds including that the dispute did not fall within the scope of the dispute resolution clause under the royalty deed, the notice of dispute issued by Adani was invalid, and the expert lacked independence (but this was not pressed at the hearing).
The judgment is published here.
HFW published this commentary on the matter.