But its shareprice made a recovery after it revealed it would seek to represent itself at the hearings.

Shares in NuCoal, which is seeking to develop Doyles Creek into a producer of high-quality coking and thermal coal, closed the week at 13.5c.

This equates to a market capitalisation of $104 million, or 20c for every tonne of its 512Mt of measured, indicated and inferred resources. The company’s cash and deposits were $21.4 million as at December 31.

On September 10, the company announced an initial probable ore reserve of 50.9Mt across two of the five identified target seams for the Doyles Creek project.

Further work will be carried out over the year to convert an increasing proportion of the remainder of the 512Mt of measured, indicated and inferred resources to progressively upgrade ore reserves.

According to a prefeasibility study conducted by Palaris, the Doyles Creek project is projected to be in the lowest quartile of operating costs for seaborne metallurgical coal projects. It is forecast to generate a net present value (after tax) of $523 million at a 10% discount rate.

NuCoal said in a letter to shareholders last week that it had sought and been granted leave to be represented before the Independent Commission Against Corruption.

“Senior counsel will participate in the hearings as necessary in the interests of the company and its shareholders,” it said.

“The board and the lawyers retained to act for NuCoal are considering this opening address very carefully. The company intends to engage in responding to and assisting the ICAC to fully understand the facts and circumstances surrounding the grant of EL 7270 in the interests of the company.”