Newcrest defends against legal action

Newcrest is gearing up to fight legal claims that threaten its plans to expand its massive Cadia gold mine.

According to the miner it has been served four legal actions by an exploration company called Gold and Copper Resources (GCR) regarding its exploration licences and claims of breach of confidence.

The junior explorer first lodged a complaint again the miner late last year, implicating the miner and an employee of the Department of Primary Industries had acted fraudulently in regards to Exploration Licence (EL) 3865.

In its latest attack on Newcrest, GCR is again disputing the awarding of EL 3865 to Newcrest by the NSW Government.

According to Newcrest it has also launched legal action "in relation to a breach of confidence in respect of GCR exploration technology".
It is believed that the technology is GCR's large scale gradient array induced polarisation technology, which has been used at the Oyu Tolgoi mine in Mongolia.

GCR currently holds a number exploration licences in the region, all of which are within 50kms of the Cadia mine and is seeking to expand these holdings; Newcrest is claiming that it is seeking to do so "by challenging existing Newcrest exploration tenure in the region".

Newcrest has dismissed the legal claims, stating that "these matters are not material and do not adversely impact either day to day operations at Cadia or the commencement of commercial production at the Cadia East project".

The miner has been operating at Newcrest for around 15 years, and is planning to invest $1.3 billion into Cadia East over the next five years.

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