PERTH (miningweekly.com) – ASX-listed NuCoal Resources went into a trading halt on Wednesday after the New South Wales High Court sided with the government in an argument over the Doyles Creek project.
NuCoal in June last year launched constitutional proceedings to have the New South Wales Mining Amendment Act declared unconstitutional, after the miner lost its right to explore on the Doyles Creek licence area.
The New South Wales government revoked the Doyles Creek licence, without compensation after the Independent Commission Against Corruption (ICAC) identified alleged corruption in the award of the licence to the project’s previous owners.
NuCoal acquired the Doyles Creek tenement in 2010 from former owner Doyles Creek Mining.
However, the High Court on Wednesday unanimously ruled that the state government was acting within its powers by cancelling the licence, and refused to order the New South Wales government to compensate NuCoal for the cancellation of the licence.
NuCoal has suspended its share trade on the ASX while the company’s board and legal counsel considered the judgment.