NuCoal Resources is suing the New South Wales Government and former mining minister Ian Macdonald, after a recent finding of “corrupt conduct” in exploration approvals.

NuCoal’s suit stems from a finding by the Independent Commission Against Corruption, revealing in August that “corrupt conduct” took place in the approval of an exploration licence for the Doyle’s Creek project in the Hunter Valley.

The coal exploration licence, approved by Ian Macdonald to a company headed by former Union boss John Maitland and other businesspeople, has been called into question.

The mine was initially set up as a training facility, but was purchased by NuCoal in 2010, netting an $84.74 million profit for Maitland and other investors.

NuCoal now claims it was totally unaware of the corrupt dealings surrounding the mine when it was purchased, and would like to clear its name by further condemning others.

“The circumstances of the corrupt conduct as reported by the Commissioner were not, and could not have been, known to NuCoal at the time NuCoal purchased DCM,” NuCoal chairman Gordon Galt said in a letter to shareholders.

“Your company is an innocent party in the matter.”

NuCoal has pledged to “take whatever realistic steps it can to protect the company’s legal position”, advising shareholders it may pursue a Mandamus against the former resources minister, seeking the renewal of some exploration applications.

The allegations of cover-ups from NuCoal extend to Mr Macdonald and the NSW State Government.

“The ICAC report found circumstances that could establish that former minister Macdonald had committed the common law crime of ‘misconduct in public office’,” Galt said.

“If this action ultimately becomes necessary and is successful, it may result in compensation from the NSW Government.”