The Australian mining company Frontier Resources will contest a Papua New Guinea government decision not to renew its mining licence for a site near the Kokoda Track.
On Wednesday the PNG government said the exploration licence for the controversial Kodu project, to the east of the Kokoda Track, would not be renewed.
But Frontier managing director Peter McNeil said the copper miner had already spent more than millions on the project, and would ask the PNG courts to review the decision.
He told The Weekend Australian newspaper the company would seek compensation if the court action failed.
He said Frontier will seek adequate compensation, including recoupment of expenditure to date, plus lost potential future profit.