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Market Chatter: Newcrest Mining's Gold Mine Licence to be Challenged in Australia; Dragged into Government Corruption Scandal

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Newcrest Mining (NM.TO) has been served with a lawsuit challenging its licence to Australiaâ€â"¢s biggest underground gold mine, Cadia Far East, a licence that was granted by New South Wales former politician Eddie Obeid, the Sydney Morning Herald has reported.

The lawsuit is likely to drag Newcrest into an ongoing government corruption scandal where officers from the NSW mines department are scheduled to face questions this week.

Last month the Australian Financial Review, a business newspaper, ran a story about small explorer Gold and Copper Resources alleging that Newcrest had been mining in the Cadia/Ridgeway area without a mining licence.

Even if Newcrest's mining rights are legally defensible, there is likely to be a review of all approvals granted by Eddie Obeid, the mines minister Ian Macdonald and development approvals by former planning minister Tony Kelly, the Herald said.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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