The ICAC inquiry should be completed quickly, and the findings announced as soon as possible, it has told the NSW government.

“In discussions with the government we have communicated our concerns about the damage that has been caused to NuCoal’s valuation and reputation by the speculation during 2011 about a possible inquiry into the issuing of EL 7270 [Doyles Creek],” it said.

NuCoal said the inquiry would examine a period long before NuCoal had any interest in Doyles Creek.

“Even though there is no basis for the ICAC inquiry being linked with NuCoal, the company intends to fully cooperate with, and assist ICAC if requested. It is in the interests of the project and our shareholders that all relevant facts are brought to light and thoroughly investigated as quickly as possible,” the company said.

“We have advised the government that our expectation is the inquiry and the subsequent findings will not prejudice NuCoal’s future application for a mining lease on EL 7270.

“In this regard we were heartened by public comments made by NSW Premier Barry O’Farrell in December when he stated NuCoal and its shareholders are the innocent parties in this situation.”

NuCoal intends to continue its exploration activities, as agreed with the government, and to bring forward a comprehensive development proposal that includes the establishment of an industry first mine training school before the expiration of EL 7270 in December 2012.

In November 2011, NSW Minister for Resources and Energy Chris Hartcher introduced a resolution into the Parliament to formally refer to ICAC the awarding of EL 7270 by former minister for mineral resources Ian Macdonald in December 2008.

This followed the tabling of an independent report which examined the efficacy and decision-making process related to the decision.

In early December 2011, Hartcher wrote to NuCoal requesting that the company consider reviewing all of its current exploration activities on EL 7270 pending the outcome of the ICAC inquiry.

NuCoal management met with Hartcher on two occasions in December to discuss this request and other issues related to the awarding of EL 7270, and the overall Doyles Creek underground mine project.

“Following some very positive and constructive discussions, it was agreed that in accordance with its exploration licence, NuCoal would continue current exploration activities on land where NuCoal has access agreements in place with landowners and on land which NuCoal owns,” the company said.

NuCoal agreed not to explore on land owned by Jerrys Plains farmer Ian Moore for the duration of the exploration licence, despite obtaining approval by the Land & Environment Court to conduct exploration activities on the property.

NuCoal managing director Glen Lewis, said: “We were pleased to have reached a sensible resolution to this issue after the minister gave assurances that it would not affect the company’s ongoing obligations under the NSW Mining Act to fully explore EL 7270.

“NuCoal will still maintain its overall progress with the project in accordance with our development schedule.”