O’Farrell, who gave the state an atypical stretch of political leadership stability until Independent Commission Against Corruption proceedings led to the “Grange-gate” controversy that triggered his resignation in April 2014, made comments which became subject to defamation proceedings by NuCoal in February that year.

These occurred at a Community Cabinet meeting held in Maitland not long after his government passed a law which effectively stripped NuCoal of its Doyles Creek project tenement.

During the meeting O’Farrell said that ICAC had made adverse comments about the directors of NuCoal.

“I also stated that the directors of NuCoal Resources were attempting to distract shareholders from their responsibilities as directors,” he said in his public correction and apology statement.

“I accept that those remarks may have suggested that the current directors of NuCoal (Gordon Galt, Glen Lewis, James Beecher and Michael Davies) had been subject to such comments.

“I accept that ICAC did not make adverse comments about the current directors of NuCoal. I did not intend to suggest that it had. I also accept that those directors were not attempting to distract shareholders from their responsibilities to them.”

Galt, NuCoal’s chairman, said he was disappointed by the process and costs that he and his colleagues had been “put through by the ex-Premier”.

“As directors we have a duty to protect the assets of our shareholders,” Galt said.

“We understand this clearly. We are pleased that the record has now been set straight for all to see and we will let this part of our pursuit of justice in respect of the cancellation of NuCoal’s asset stop here.”

NuCoal said O’Farrell agreed to pay significant costs incurred by the directors during their defamation action.

Other caseload

NuCoal is legally disputing the state government’s Doyles Creek licence-stripping mining amendment act, aims to overturn certain ICAC findings and recommendations and is seeking compensation under Australia-US Free Trade Agreement liabilities.

“Decisions are pending in the Supreme Court of NSW and the High Court, and discussions are proceeding between NuCoal, its substantial US shareholder base and the US government in respect to the FTA,” the coal explorer said.