Beaconsfield Owners Still Seek Payout
The Age
Tuesday February 5, 2008
ALMOST two years after a rock collapse at the Beaconsfield goldmine in Tasmania killed one worker and trapped two others deep underground, the mine's joint owners are still pursuing their insurers for $45.5 million.
Beaconsfield Gold and Allstate Explorations are suing QBE Insurance for losses related to the interruption of the mine's operations on and after April 25, 2006, when a tremor - deemed to have been triggered by mining - loosened rocks about 900 metres underground.But the companies' claim received an early setback last year when Justice Kim Hargrave in the Victorian Supreme Court ruled in favour of QBE's interpretation of a particular clause in the mine's policy. The judge ruled that the insurance policy did not cover for financial losses if the mine was closed by civil authorities, unless the closure was due to physical damage.Lawyers for Beaconsfield Gold and Allstate have appealed, and yesterday they convinced Master Robyn Lansdowne that the matter should receive a speedy hearing in the Court of Appeal.But James Barber, counsel for Beaconsfield and Allstate, told Master Lansdowne that if it came back to trial, QBE would likely challenge the claim by, among other things, alleging that the mine's owners failed to tell the insurance company about Beaconsfield's history of seismic instability.In granting an early appeal hearing in August, Master Lansdowne noted that if Beaconsfield and Allstate were able to win in the Court of Appeal, "then it is by no means the end of the matter; in fact, it's just the beginning".Beaconsfield Gold, which owns 48.49% of the mine, last year bought 90% of its partner, Allstate.
© 2008 The Age
