NuCoal claims the legislative actions of the NSW Government in cancelling EL 7270 [Doyles Creek] in January 2014 were unprecedented and as a result of those actions NuCoal’s view is that the LTSOP was frustrated as a matter of law.
“NuCoal’s position is that it is not liable to PWCS for a number of reasons including that the contact has been frustrated, and the proceedings are being defended,” the company said.
Meanwhile, NuCoal is continuing to pursue claims against the Australian government on behalf of overseas based shareholders under various Free Trade Agreements (FTAs) after the New South Wales government revoked the exploration licence for the Doyles Creek coal project in the Hunter Valley.
These potential international actions are being progressed with a view to obtaining compensation from the Australian government for the decision by the NSW government not to pay compensation after making the decision.
Some FTAs allow the plaintiff (NuCoal shareholders who reside in the relevant jurisdictions outside Australia) to bring an action without needing the consent of the Australian government while other FTAs require the consent of both the government of the investor’s home country and the Australian government before an action can proceed.
“As previously communicated, shareholders should note that any successful actions under an FTA will benefit only the shareholders who bring and participate in the actions,” NuCoal said.
