MELBOURNE, Australia, Nov. 20, 2012 /CNW/ - A recent media report refers to a further legal action commenced against Newcrest by an exploration company named Gold and Copper Resources Pty Limited (GCR).
With this claim, GCR has now brought five separate legal actions against Newcrest, which relate to various aspects of Newcrest's Cadia Valley tenure and activities. The New South Wales Minister for Resources and Energy is a co-respondent to three of these actions, and is the first respondent in this latest claim.
Newcrest issued a market release regarding the first four actions on 1 October 2012. That release noted that GCR has holdings of exploration licences in the Cadia district, and that GCR is seeking to expand those holdings, including by challenging existing Newcrest tenure in the region.
As with the earlier four claims, Newcrest believes that this latest court action is without merit. The latest GCR claim seeks to challenge the validity of two of the mining leases held by Newcrest for its Cadia Valley operations, which were granted in October 2000 and March 2001 respectively. Newcrest will be vigorously defending the action and considers that, as with the other four actions, the matter is not material to Newcrest and will not adversely impact operations at Cadia Valley.
Newcrest's Cadia Valley assets have been in operation for 15 years. Over the past 5 years Newcrest has reinvested over A$500 million into the Ridgeway Deeps mine, in excess of A$2 billion into the Cadia East mine operation and plant expansion (on schedule to start commercial production in December 2012), and plans to invest a further A$1.3 billion in Cadia East over the next 5 years. Newcrest has approximately 1500 employees and contractors currently working at Cadia Valley.
SOURCE: Newcrest Mining Limited
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