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5<br />

10<br />

15<br />

20<br />

25<br />

[38] There is ample authority that a public body cannot<br />

exercise its powers or discretion contrary to the statute. In<br />

Cudgen Rutile (No.2) Pty Ltd & Anor v Gordon William<br />

Wesley Chalk [1975] AC 520 P.C, an Australian case,<br />

referred to by the Federal Court in Lesco case, the Privy<br />

Council held that the Crown in Australia could not contract<br />

for the disposal of any interest in Crown lands except in<br />

accordance with powers conferred by a statute and<br />

accordingly, where a statute prescribed a mode of exercise<br />

of the statutory power that had to be observed.<br />

[39] In that case the appellants carried on the business of<br />

mineral sand mining in Queensland. The appellants were<br />

holders of an authority to prospect, granted under section<br />

23A of the Mining Act 1898 by the Minister of Mines in<br />

respect of an area of approximately 18 square miles, which<br />

was renewable for a further period of one year. On their<br />

application for renewal, the Minister granted the renewal to<br />

prospect on the Crown lands for all minerals other than coal,<br />

mineral oil and petroleum. When the appellants discovered<br />

large mineral deposits on the Crown lands, they applied for<br />

special mineral leases in respect of the minerals so<br />

discovered. The Mining Warden, who heard the applications<br />

recommended that the leases should be granted but the<br />

government refused to grant any.<br />

27

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