Stock Market Wire | 31 March 2017
Churchill updates on $1.3bn claim against the Republic of Indonesia
Churchill Mining says it continues to pursue its $1.315bn claim against the Republic of Indonesia in relation to the revocation of its licenses at the East Kutai Coal Project (EKCP).
At the time the EKCP licences were revoked, Churchill and its wholly owned subsidiary Planet Mining held a 75% interest in the EKCP.
The area covered by the EKCP licences (i.e. the EKCP) contained a JORC Resource of 2.8bn tonnes and incorporated a JORC Reserve of 980m tonnes.
Churchill has brought its claims against Indonesia under the United Kingdom-Indonesia Bilateral Investment Treaty; Planet’s claim - which is being run in consolidation with Churchill’s case - is brought under the Australia-Indonesia Bilateral Investment Treaty..
The consolidated Churchill/Planet arbitration is being conducted at the International Centre for Settlement of Investment Disputes (ICSID).
In legal terms, Churchill and Planet’s causes of action are brought primarily under the expropriation and Fair and Equitable Treatment provisions of the respective treaties.
Churchill provided the following update:
"The Company will today lodge an application to annul the ICSID Award of 6 December 2016. The Company will receive a temporary ("provisional") automatic stay of execution of the Award including the cost orders contained in it once the Application for Annulment is registered by ICSID. Whilst the Directors believe the annulment application has reasonable prospects of success, there can be no guarantee that the tribunal will grant a permanent stay of the adverse USD 9,446,528 costs order on terms satisfactory to the Company and subsequently grant a partial or full annulment of the ICSID Award."