Cascade Coal fights for licenses, compensation

Marianna Papadakis

Updated May 4, 2015 – 3.44pm, first published at 10.56am

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Already a subscriber?

Obeid-linked private mining Cascade Coal is pursuing the reinstatement of two lucrative coal licences, along with potential compensation from the NSW government.

NSW Court of Appeal processes began on Monday for corruption findings against Cascade Coal's directors Travers Duncan, John McGuigan, Richard Poole and John Atkinson to be declared a nullity, in the fall out from the NSW Independent Commission Against Corruption's High Court loss against Crown Prosecutor Margaret Cunneen.

The ICAC announced late on April 23 that it would consent to having corruption findings against the four men overturned because of the impact of the High Court decision.

Director Travers Duncan wants corruption findings declared a nullity. Sasha Woolley

The High Court's decision on April 15 narrowed the interpretation of "corrupt conduct" and ICAC's investigative capabilities.

The company, Cascade Coal, is continuing to pursue the reinstatement of its two Mt Penny and Glendon Brook exploration licences, as well as an apparent bid for compensation, notwithstanding the loss of a separate High Court appeal, which upheld the validity of NSW government legislation that effectively cancelled the licenses last year.

In a separate ruling delivered on the same day as the Cunneen judgment, the High Court unanimously held the NSW government legislation and the cancellation of the licences without compensation, was valid.

NuCoal

Despite the loss, NuCoal said after the decision it would continue to pursue judicial review of the ICAC's findings and its cancelled licence as well as compensation.

Cascade Coal is seemingly following a similar path, and on Monday NSW Court of Appeal president Margaret Beazley ordered its appeal against the court's previous dismissal of its challenge against ICAC's recommendation to the government that its coal licenses be cancelled, be set down for a two-day hearing on June 15-16.

It followed findings by ICAC in December 2013 that former Labor mining minister Ian Macdonald acted corruptly when approving the tenements. The ICAC recommended the NSW Government cancel the licences because they were "so tainted with corruption".

The ICAC also found that Cascade Coal's former directors acted corruptly by deliberately concealing corrupt former Labor Minister Eddie Obeid interest in the Mt Penny exploration licence which covered the Obeid's family farm at the Bylong Valley in northern NSW.

But David Jackson QC who represents Mr Poole, Mr McGuigan and Cascade Coal said the hearings would determine the impact of the two High Court judgments on Cascade Coal and its licences.

The question of who pays the parties legal costs was reserved.

Mr Jackson said his clients were the subject of adverse findings which the court should find ICAC had no power to make and "their position should be vindicated".

The court heard that while proceedings against Mr Duncan settled in principle, he was seeking additional orders that ICAC's findings against him were not only a nullity but also flawed, unnecessary and inutile.

But Geoffrey Watson, SC, representing ICAC, said this was an inappropriate "declamatory statement against ICAC" that was not supported by the Cunneen decision.

It follows a separation application to the courts on Friday by former Doyles Creek Mining directors Andrew Poole, Craig Ransley and Mike Chester to have corruption findings made against them by ICAC in August 2013 concerning the approval of a lucrative Hunter Valley coal licence, annulled.

It also comes as the NSW Government considers ICAC's calls for legislative amendments to reinstate its former powers.