QLD businessman James Gorman takes on Pembroke Resources

A former rich lister and cattle baron is seeking $125 million compensation from a miner.

James Gorman

A former rich lister seeking $125 million compensation from a mining company due to the impact on his cattle properties.

The amount was disclosed in a decision by the Land Court of Queensland decision published on September 29, in relation to a case between James “Jim” Gorman’s “cattle enterprise” and Pembroke Resources‘ Olive Downs’ coal mine, south-west of Moranbah in Central Queensland.

Two of Mr Gorman‘s companies applied for the compensation, with their “specific concerns” that hazardous substances, increased sediment loads and mine water releases with high salt loads would impact surface water, according to the court document.

Pembroke Resources has received approval for the coking coal mine, which is about 40km southeast of Mackay and will straddle the Isaac River.

Mr Gorman, who was number 45 on the 2013 Queensland Rich List, is the sole director and shareholder of two companies listed in the court case – Balanced Property Pty Ltd and Namrog Investments Pty Ltd.

Former rich lister James “Jim” Gorman.

It is through his companies that Mr Gorman operates his “cattle enterprise”, according to the Land Court decision.

He is seeking a total of $125 million compensation as a consequence of the Olive Downs mining lease.

Mr Gorman has listed 16 properties used for breeding form part of the “cattle enterprise”.

“The properties cannot be replaced and, therefore, the cattle enterprise would have to source about 5000 weaners each year from the market at large,” the documents state.

“The losses are particularised as $95m of direct business losses (less the net realisable value of the breeding herd) plus the annual cost of replacing weaners (estimated at $9.5m) plus the annual lost revenue ($2.2 million), and additional operating costs ($3.1 million per annum).”

Codrilla is a property on the Fitzroy Development Rd at Valkyrie.

According to a Financial Review article published in May 2022, Mr Gorman purchased a 12,722 hectare property from coal mining giant Peabody Energy for $27 million through his Balanced Property company.

The property “Codrilla” in Valkyrie, a rural hamlet about 140km south of Mackay, was subject to a proposed mining project which fell over after the original company Macarthur Coal became defunct in 2012 following the death of its founder Ken Talbot.

Valkyrie borders the Olive Downs mine site.

Mr Gorman was once a witness in an unrelated court case which saw his former business partner Harold Shand jailed in 2011 for making a corrupt payment to former Labor minister Gordon Nuttall. Mr Gorman was not accused of any wrongdoing.

MINING PROJECT: Environmentalists have expressed concerns about the rehabilitation of the proposed site for the Olive Downs coal mine.

Mr Gordon is not the only cattle business owner impacted by the Olive Downs mine, which is not due to commence until 2035.

Land Court decision acting President Peta Stilgoe stated it was clear the aim was to prevent mining on the greatest area possible.

She said Mr Gorman admitted it in an affidavit and his lawyer conceded the point, stating “(We) don’t want compensation… we’re entitled to prevent you from mining this area”.

“That bird has flown,” Ms Stilgoe said.

Codrilla is a property on the Fitzroy Development Rd at Valkyrie.

The Land Court had to determine whether an affidavit filed nine months late by Mr Gorman’s companies could be accepted and the definition of a dam and the area used for a dam according to the Mineral Resources (Common Provisions) Act 2014 (Qld).

The court decided the affidavit could be used, but Pembroke would have to be paid the costs thrown away by its filing.

Ms Stilgoe stated in relation to the legislation that a ‘dam’ is an artificially constructed wall or barrier built to obstruct the flow of, and impound, water; and, an area used for the purpose of a dam relates to a dam wall and the necessary works required to support the dam wall.

The matter continues before the court.