NuCoal Rebukes NSW Premier’s Denial of Compensation Over Licence Cancellation
NuCoal Resources has strongly condemned the NSW Premier’s refusal to compensate for losses tied to the 2014 cancellation of its Doyles Creek exploration licence, signaling a protracted battle ahead.
- NSW Premier Chris Minns declines compensation scheme for NuCoal losses
- Cancellation of Exploration Licence 7270 under 2014 Mining Amendment Act
- NuCoal labels Premier’s response as 'completely unacceptable'
- Company plans to pursue compensation domestically and via US trade channels
- Uncertainty remains over government’s final stance on Law and Justice Committee recommendations
Background to the Dispute
NuCoal Resources Ltd (ASX: NCR), a coal exploration company, has publicly expressed its strong dissatisfaction with the New South Wales Government following a recent letter from Premier Chris Minns. The Premier’s letter, dated 10 January 2025, firmly rejects the establishment of any compensation scheme for losses NuCoal claims to have suffered due to the cancellation of its exploration licence at Doyles Creek.
This cancellation stems from the Mining Amendment (ICAC Jasper and Acacia) Act 2014, which revoked Exploration Licence 7270. The Act was part of a broader regulatory crackdown, but its financial repercussions for NuCoal have been significant and contentious.
Premier’s Firm Stance and Company Response
Premier Minns’ letter states that after careful consideration, the NSW Government will not compensate parties affected by the Act. Notably, the Premier and his advisers did not engage with NuCoal directly to discuss the company’s position prior to issuing this response. This lack of dialogue has only intensified NuCoal’s frustration.
NuCoal’s board has described the Premier’s position as "completely unacceptable" and has committed to vigorously pursuing compensation. The company is preparing a detailed rebuttal to be sent to the Premier and all NSW parliamentary members, underscoring its determination to keep the issue front and centre.
International Dimensions and Legal Implications
Beyond domestic avenues, NuCoal intends to escalate its claims internationally, specifically through the United States Trade Representative under the Australia/US Free Trade Agreement. This move signals the company’s readiness to leverage international trade mechanisms to seek redress, potentially complicating the political and legal landscape around mining regulation in NSW.
The situation also raises questions about the NSW Government’s response to the 2019 Law and Justice Committee recommendations, which addressed compensation claims related to the Act. It remains unclear whether Premier Minns’ letter represents the government’s final position or if further parliamentary responses are forthcoming.
Market and Sector Implications
For investors and stakeholders, this dispute highlights the ongoing regulatory risks facing mining companies in NSW, particularly those impacted by retrospective legislative actions. NuCoal’s public stance and planned international escalation may set a precedent for how affected companies respond to government refusals on compensation.
While the immediate financial impact on NuCoal’s operations is not detailed, the protracted nature of this dispute could weigh on investor sentiment and share price performance, especially given the company’s sizeable issued share base of 768.6 million shares.
Bottom Line?
NuCoal’s uncompromising stance signals a drawn-out battle that could reshape compensation norms for mining licence cancellations in NSW.
Questions in the middle?
- Will the NSW Government reconsider or clarify its compensation stance following NuCoal’s detailed response?
- How might NuCoal’s international trade complaint influence Australia’s mining regulatory environment?
- What financial provisions or contingencies is NuCoal preparing amid this unresolved compensation dispute?
