IN A David and Goliath battle, Gold and Copper Resources (GCR), a small exploration company based at Lucknow, landed a blow against Newcrest Mining Limited which could mean they get a piece of the resource-rich Cadia Valley.
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GCR owner Brian Locke said the ruling on Friday by the Land and Environment Court which suspended an exploration licence renewal granted to Newcrest in 2011 meant his company could be considered next in line for the valley exploration.
“We would explore it, that’s what our business is,” he said.
After the ruling Newcrest’s share price dropped to its lowest since July, 2005, at $14.28 earlier yesterday.
Justice Nicola Pain determined the minister’s delegate to disgraced former mining minister Ian MacDonald, must say why the mining juggernaut was granted the renewal.
If he can give valid reasons the licence would be reinstated. Newcrest spokesperson Kerrina Watson insisted the latest decision will have no impact on mining operations at Cadia.
But the next two legal challenges might.
GCR had five legal actions in train, the next two are over mining the Cadia ore body.
One alleges that Newcrest continued to mine without a proper mining licence. For a mining licence to be awarded it should be preceded by an exploration licence.
The second is in relation to the permitting of activities outside the mining lease borders at Cadia.
In a market release issued in October Newcrest said that “none of the claims has merit’’ and “this exploration tenure is not material to Newcrest’s mining operations’’.
The judgment also ruled that two hectares of freehold land owned by Newcrest had not been covered by the licence renewal.
The mine said that the small parcel of land is not relevant to its mining or exploration activities.
Newcrest did not comment on the drop in share price, which closed at $14.55 yesterday.
The shares decreased 6.49 per cent over the last two days. nicole.kuter@ fairfaxmedia.com.au