$2 Mining companies - financially secure or ponzi scheme
No cash but $100 firm gets green light on gas -Article October 2013
THE NSW government extended for six years vast coal-seam gas exploration licenses held by a $100 company despite being told it had little equity, had failed to lodge accounts on time and had almost no industry experience.
It can also be revealed NSW CSG operators are permitted to "self-declare" their financial position, with some being granted massive licenses without providing balance sheets, profit-and-loss statements, or even details of their corporate structure.
In June last year, the NSW government extended by six years three exploration licenses held by Leichhardt Resources, a $100 company run by a Brisbane lawyer in his spare time. The licenses cover more than 5500sq km.
"It's concerning that $2 companies with (limited) expertise or financial backing have been granted licenses which give them the power to force their way on to a property to drill for coal-seam gas."
Field day for small-timers at the CSG picnic Article date April 5th 2014
The Weekend Australian can reveal there are 33 exploration license permits before the NSW government — lodged by 14 different entities — with most of them small-time companies with as little as $2 in equity. The late Resources Minister Anthony Roberts said it had been “far too easy for speculators and cowboys to be granted petroleum exploration (licenses) over large areas of land with little regulation and little oversight”.
Other companies to have lodged CSG exploration permits include $1 company Summerland Way Energy and $2 company Ceemac, which applied for three permits covering large areas near Lithgow, Coonabarabran and Dubbo. One of these license holders is a $10 company called Drequilin, which holds exploration permits over about 5000sq km of land near Armidale in northern NSW and is solely directed by Travers Duncan and Brian Flannery, both of whom appeared last year before the ICAC inquiry into Mr Obeid http://www.theaustralian.com.au/business/field-day-for-smalltimers-at-the-csg-picnic/story-e6frg8zx-1226875113831
Read more from Community Over Mining briefing paper
Letter To Editor – Gippsland Times 21st November 2014
A Community conversation - Mining Cannot Co-exist With Farming
Is it fair that the Government uses tax-payers money to prop up mining companies who are not financially viable and who threaten a valuable agricultural industry which is a significantly higher employer than the mining sector in Wellington Shire?
The entire MacCalister Irrigation District, Gippsland Lakes and surrounds extending east as far as Marlo are now covered by mining exploration licences EL4416 for coal and coal seam gas and EL4968, being recently approved for Base Metals (copper/lead/zinc), Gold, Mineral Sands, Platinum and Silver. These licences are owned by Ignite Energy Resources (IER) and its subsidiary Entrance Energy Inc respectively.