NuCoal goes for compo via FTAs

NUCOAL Resources is continuing to pursue claims against the Australian government on behalf of its overseas-based shareholders under various Free Trade Agreements (FTAs) after the New South Wales government revoked the licence to its Doyles Creek coal project in the Hunter Valley.
NuCoal goes for compo via FTAs NuCoal goes for compo via FTAs NuCoal goes for compo via FTAs NuCoal goes for compo via FTAs NuCoal goes for compo via FTAs

Former Minister for Mineral and Forest Resources Ian Macdonald

Lou Caruana

This follows an unsuccessful attempt in the High Court to overturn the NSW government action which was prompted by an Independent Commission Against Corruption ruling that the licence was awarded corruptly by former NSW Minster for Mineral Resources Ian Macdonald.

“These potential international actions are being progressed with a view to obtaining compensation from the Australian government for the decision by the NSW government to expropriate EL 7270 [Doyles Creek] without payment of compensation,” the company said.

“Some FTAs allow the plaintiff (NuCoal shareholders who reside in the relevant jurisdictions outside Australia) to bring an action without needing the consent of the Australian government (for example Australia’s Free Trade Agreements with Singapore, Hong Kong and others) while other FTAs require the consent of both the government of the investor’s home country and the Australian government before an action can proceed (for example the Australia-USA Free Trade Agreement).

“Shareholders should note that any successful actions under an FTA will benefit only the shareholders who bring and participate in the actions.”