In his annual report statement on Friday, NuCoal chairman Gordon Galt said management had been investigating opportunities for its Savoy Hill and Dellworth projects and "outside projects which have been for sale or on which we could make an unsolicited proposal".

Yet in the case of Savoy Hill, Galt said whatever happened to the nearby Drayton South project may affect it with a government decision expected in late 2014.

However, the Planning Assessment Commission had already rejected this Drayton mine extension project in a controversial decision on October 17 – giving NuCoal another dose of disappointment.

The main activity of NuCoal has been its legal challenges to the unprecedented mining law amendments passed by the state government to strip NuCoal of its Doyles Creek licence in January.

Galt noted that the Independent Commission Against Corruption, which found evidence the Doyles Creek licence was corruptly awarded to NuCoal while it was led by former union boss and founding shareholder John Maitland, had previously recommended that compensation be paid to innocent parties such as NuCoal shareholders for consequently cancelling the project licence EL 7270.

“The Mining Amendment Act did indeed cancel the Doyles Creek licence, but it went much further than that – it denied NuCoal any right to compensation for the cancellation.

“It also empowered the state to compulsorily acquire all of NuCoal’s valuable exploration information without compensation. It further immunised the state from any claims for compensation or any vicarious liability for the actions of its minister.

“It is our view that the Parliament is not entitled to pass such a law. This is the essence of our action against the NSW government in the High Court of Australia, and we are hopeful that the case will be heard towards the end of 2014.

“The legislation highlights the ability of the states of Australia to take away property without paying compensation and in the absence of wrongdoing.”

Galt said this fact was the focus of NuCoal’s free trade agreement initiatives in seeking compensation for its foreign investors by way of international arbitration proceedings against Australia for the actions of the NSW government.

“It is likely that these foreign countries are now looking at sovereign risk in Australia, and in particular in NSW, in a completely different light,” he said.

Galt further said it was difficult to imagine a more difficult year for NuCoal.

“The actions of the NSW government have caused great pain and loss to our shareholders and many other stakeholders and we are pursuing the legal courses of action that are available to us.”