With the Keneally government facing a landslide defeat in the New South Wales state election later this month, there has been media interest in Labor party affiliations to Cascade and NuCoal Resources.
Former union heavyweight John Maitland led the Doyles Creek permit application process for NuCoal, but he sold out his 4.76 million shares in the explorer for more than $A1 million last year.
The family company of former NSW minerals resources minister Eddie Obeid purchased the Cherrydale Park property in Cascade’s Mt Penny project area in late 2007, with expressions of interest sought for this exploration licence less than a year afterwards.
White’s $486 million takeover offer for Cascade was recently deemed fair and reasonable by independent expert Deloitte.
Yesterday the Australian Financial Review reported that the NSW Coalition would seek to review the circumstances of how the exploration licences were granted to Cascade and NuCoal after winning government.
The newspaper further reported that an audit was likely to be made by either a retired judge or senior barrister, meaning it “will be a serious inquiry”
In its rebuttal, White confirmed that the Cherrydale Park property is owned by a company associated with a NSW government parliamentary member.
But on possible state Coalition plans, White referred to another press report which suggested that any review or proposed audit would apply only to new exploration licences and existing ones “not yet at the development applications stage”
“Accordingly, Cascade believes that the policy would not apply to the Mt Penny coal project since the Cascade proposal has already progressed to the development application stage,” the company announced.
White said Cascade submitted its major project application and preliminary environmental assessment report to the NSW Department of Planning on December 16, and the department held a focus meeting to formally introduce the project and hold a site inspection on February 3.
However, information relating to any applications for the project under the Part 3A of the Environmental Planning and Assessment Act is yet to be made publicly available at the department’s website.
White also addressed other concerns over recent policies announced by the state Coalition.
“Cascade notes that any planned review of EL’s by an incoming NSW coalition government may involve miners having to submit an agricultural impact assessment and abide by new rules regarding underground aquifers,” the company said.
“In this regard, these matters will be fully addressed during the mining lease application process.”
An AFR investigation of Cascade in early December found that five White directors were each 12% shareholders of the company, including ex-Felix duo Brian Flannery and Travers Duncan.
Other Cascade directors reportedly are Rams Home Loan founder John Kinghorn and his fellow Krispy Kreme investors John Atkinson and John McGuigan. The Australian arm of the doughnut maker collapsed in November.
Investment house Arthur Phillip investor Richard Poole owns 12% of Cascade while 28% of the company is held by clients of this firm and Southern Cross Equities, according to the AFR report.
White shares are down 1c to $2.73 this morning.
