Wednesday, 12 June 2013

One miner feeling the heat...

Not only those falling gold prices it seems but lawyers are getting involved...

Besieged gold producer Newcrest Mining could face multiple legal claims within the next month as former contractors push for millions of dollars worth of compensation, and shareholders mull a possible class action.
Fresh from dealing with an ASIC probe into the share price slump that preceded last week's corporate restructure, Newcrest is believed to be preparing to front two mediation hearings in coming weeks on disputes linked to the troubled Lihir project in Papua New Guinea.
An engineering, procurement and management contractor is believed to be demanding more than $7million as part of a dispute over a cancelled contract....A Queensland-based labour hire company is also believed to be claiming it is owed almost $5 million under a contract it previously held on the Lihir project.
That company is expected to launch legal action to recover the money unless a resolution is reached at mediation sessions.Newcrest declined to comment.
Maurice Blackburn principal Andrew Watson said he was investigating whether shareholders could launch an action over potential breaches of market disclosure laws.''It beggars belief that Newcrest knew nothing of the catastrophic impact that the gold price slump would have on the value of its assets until the day it announced the write-down,'' he said. (here)

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