NUCOAL has today called a trading halt, pending a further announcement from the company, following an announcement from the NSW State government asking it to suspend its activites.
The request was called pending investigation by the Independent Commission Against Corruption (ICAC).
Coal Exploration Licence 7270 was granted to Doyle’s Creek Mining Pty Ltd on 15 December 2008. Doyle’s Creek Mining has since been purchased by NuCoal.
The award of the coal exploration licence by former Mineral Resources Minister, Ian Macdonald was formally referred to ICAC last week by a resolution of NSW Parliament following an independent review finding that there had been “a circumstantial case of wrongdoing and a breach of public trust.”
Minister for Resources and Energy, Chris Hartcher has written to NuCoal said there was considerable interest and concern in the community related to the granting of the licence and the company’s exploration activities.
“In view of these concerns, and in view of the ICAC investigation currently underway, I have invited NuCoal to consider suspending all exploration activity pending the findings and recommendations of ICAC.”
The move follows a call from NSW Farmers to suspend exploration by NuCoal Resources.
NSW Farmers President Fiona Simson said NuCoal shouldn’t be allowed to pursue exploration while doubts remain over whether the licence is valid.
She was speaking after a Land and Environment Court case this week ruled that NuCoal could not drill on alluvium flats at the property of farmer Ian Moore, “Strathmore”.
“Our member Ian Moore, who’s legally blind, has set a new standard for land access in his courageous bid to prevent NuCoal from accessing his property at Jerrys Plains in the Hunter Valley,” Mrs Simson said.
“Current laws in NSW don’t give landholders the right to refuse a mining company access to their properties, so the outcome in the Land and Environment Court in Singleton was already known before it began.
“However, in a small victory the court awarded Mr Moore fair compensation, and refused to allow NuCoal to drill on prime alluvial plains on his property.
“The outcome reflects why we’ve been calling on the O’Farrell Government to allow landholders the right to refuse access, to help prevent miners from using heavy handed negotiation tactics,” she said.
Greens MLC Jeremy Buckingham also called on the government to suspend the licence.
"The Land and Environment Court decision highlights the fact that the current law in NSW puts mining companies ahead of the landholder's rights and food security," Mr Buckingham said.
He said the Mining Act should be reviewed to bring back balance and fairness to mining access agreements.
Earlier, NuCoal confirmed almost $60 million has been wiped from its value one day after the Government sought to have the circumstances surrounding its exploration licence (EL) referred to the State's corruption watchdog.
Nucoal share prices plummeted 22 per cent, Nucoal spokesman Patrick Southam confirmed to The Land.
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