Dellworth Mining Project
NuCoal owns 100% of Dellworth Pty Ltd (Dellworth). Dellworth holds exploration licence EL 6812 (Savoy Hill tenement) adjacent to mining operations owned and operated by Glencore, Coal & Allied and Anglo Coal.
EL 6812, Savoy Hill, is located approximately 30km to the north-west of Singleton, close to the Great Northern Railway line, in the upper Hunter Valley of NSW. Mining operations near Savoy Hill include Drayton Mine, Drayton South Project, Hunter Valley Operations and Mount Arthur which are located to the north, west, south east and north-west of the study area, respectively. Within EL 6812, land is owned by Anglo American, Macquarie Generation, Hunter Valley Energy Coal and the State of NSW.
Exploratory drilling commenced on 30 September 2011 on Savoy Hill (EL 6812), the largest of the Dellworth tenements, targeting nine holes initially. The initial drilling program (Stage 1) was completed and after a joint venture (drilling program) with Mitsubishi Materials Corporation, this was expanded into Stage 2 drilling which included a further 24 holes. An application for renewal of EL 6812 was lodged with the Department of Planning & Environment, Resources & Geosciences in June 2018.
Doyles Creek Mining Project
On 23 November 2011, the NSW Government announced that the Independent Commission Against Corruption (ICAC) would be tasked with undertaking an inquiry into the circumstances of the initial grant of EL 7270 to DCM. ICAC is a tribunal and is not a judicial body (eg a Court). Its procedures do not afford parties the same protections and legal entitlements as a Court would dispense. By way of example, appearance before it is not automatic and the right to cross-examine witnesses, indeed the right to call witnesses, is severely circumscribed.
On 18 December 2013, ICAC delivered its final recommendatory report to the NSW Government. That report recommended among other things that EL 7270 be expunged or cancelled.
On 31 January 2014, the NSW Government passed unprecedented legislation to cancel EL 7270. The legislation passed by Parliament denies NuCoal the ability to seek compensation, notwithstanding that the ICAC recommended that any special legislation could be accompanied by a power to compensate any innocent person affected. The legislation also prevents the State from having any liability for its past conduct.
NuCoal and its investors not only relied on a validly issued and executed exploration licence (signed by Minister Macdonald as a representative of the Crown) as their basis for their investment, but also took comfort from a probity report commissioned by the NSW Government, which was made public in late 2010. That probity report confirmed that there was no impropriety in the granting of EL 7270 by Minister Macdonald.
There was no reason for NuCoal, an independent commercial entity, to question or go behind the validity of the licence granted by the Minister. Independent investors should be able to expect that when a licence is issued by a Minister of the Crown of a developed and renowned common law country that espouses the Western ideal that property rights are sacrosanct, ought to expect that those rights will not be taken away.
NuCoal and all of its innocent shareholders did not ever contemplate, and neither should they have, that the economic value of their investments would be depleted by Government action without compensation.
Neither NuCoal nor its current directors have ever been charged or convicted of any corruption, yet NuCoal is the only party affected by the alleged corruption of others in relation to the Doyles Creek tenement.
NuCoal will pursue all available actions to protect the legal rights of the Company and its shareholders.
Actions undertaken by the Company include: