IMO Shareholders should not worry too much. The statement below...

IMO Shareholders should not worry too much. The statement below makes it clear that CXY is not in breach of its mining lease and its operations are no threat to the public.

Consequently, the QLD Gov has two choices:

1) Let CXY go about its business OR

2) Negotiate with the directors and shareholders to buy the Kingaroy plant and shut it down.

If the Qld Gov keeps the Kingaroy plant closed without a valid reason they would be liable for any losses to shareholders and CXY.

In fact the Qld Gov has to be careful with what it says. If its remarks are considered alarmist, defamatory or have put the business plan in jeopardy they could be blamed for losses to shareholders and taken to court via class action.


ABC News - Wed Jul 28, 2010 12:34pm AEST

"The Queensland Resources Council (QRC) concedes it will be hard to convince people in Kingaroy that UCG is safe despite the latest tests showing minimal contamination of bores at the Cougar Energy site."

"QRC chief executive Michael Roche says community confidence in the venture has been shattered."

"We will have to work with the authorities to make sure that people believe that all the testing is independent, it's verifiable and if there's a restart to the process, an all-clear to the use of that water," he said. - "That people believe the testing has been done independently, at arm's length from the company."

http://www.abc.net.au/news/stories/2010/07/28/2965995.htm