Any company trying to do business in NSW should seek an indemnity to cover the possibility of a government official being a crook. That is the message from the Nucoal saga. If there is no indemnity, go somewhere else. Despite acting in accordance with all of what the NSW government required, Nucoal's Hunter Valley developments have been placed on hold because of a finding of corruption against one minister (with whom Nucoal had no dealings). Nucoal has said today that it will take legal action against the government for failing to let it proceed. Even if the government wants to terminate the Nucoal licenses, they should be required to do that in a timely manner. Otherwise, the reputation of NSW as an investment destination is at risk of being trashed.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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