News: Cougar sues Qld Gov for $34M damages

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Cougar Energy Limited (ASX:CXY) has announced that it is suing the Queensland Government and three government officials for more than $34 million in damages.



The legal proceedings have been initiated in response to the Queensland Government’s decision to shut down the company’s $550 million underground coal gasification project at Kingaroy.



The state government last year closed the project after traces of toxic cancer-causing chemicals were identified in a groundwater monitoring bore.



Chairman, Malcolm McAully, says Cougar has commenced the legal action following legal advice that the closure of the project was

unreasonable and has inflicted a significant loss on the company.



In the 2011 financial year Cougar Energy booked a net loss of $35.27 million.