CHURCHILL MINING PLC
CHURCHILL MINING PLC
Churchill Mining Plc (“Churchill” or “the Company”) listed on the Alternative Investment Market (AIM) of the London Stock Exchange in April 2005. Churchill’s growth path accelerated following the discovery of a world-class thermal coal deposit in the East Kutai Regency of Kalimantan (“EKCP”), Indonesia following an intensive and targeted exploration program.
Churchill had taken the EKCP discovery through to feasibility in readiness for funding and the commencement of construction. Since then Churchill and its partners were subjected to a negative ruling from the regional Samarinda Administrative Tribunal that sought to ratify the Bupati’s improper unilateral decision to revoke the EKCP licenses. Churchill appealed the decision to the Administrative High Court in Jakarta which dismissed this appeal and has since appealed to the Indonesian Supreme Court who has also rejected the appeal.
International Arbitration against the Republic of Indonesia
Churchill then moved to file a claim of international arbitration against the Republic of Indonesia for breaches of Indonesia’s obligations under the Bilateral Investment Treaty between the United Kingdom and the Republic of Indonesia (the "UK-Indonesia BIT").
In the international arbitration at the International Centre for Settlement of Investment Disputes (“ICSID”), Churchill is seeking the full relief owed to it under the provisions of the UK-Indonesia BIT and under International law.
Churchill’s Australian subsidiary Planet Mining Pty Ltd (“Planet”), which via its 5% shareholding in PT Indonesia Coal Development also held an interest in the East Kutai Coal Project, has also filed for arbitration at ICSID against the Republic of Indonesia pursuant to the Australia-Indonesia Bilateral Investment Treaty. The Churchill and Planet arbitrations have now been consolidated into a single proceeding and will be dealt with and heard together.
During May 2013 a hearing on the Republic of Indonesia’s (“ROI”) challenge to the arbitral tribunal's jurisdiction to hear claims for damages against ROI raised by Churchill and its wholly owned subsidiary Planet Mining Pty Ltd (“Planet”) was held.
In February 2014 the ICSID arbitral tribunal, rejected the Republic of Indonesia’s challenges to the Tribunal's jurisdiction. The Tribunal decisions now allows Churchill and Planet to pursue their claims for damages against the Republic of Indonesia under the respective Bilateral Investment Treaties Indonesia entered into with the United Kingdom and Australia. In its announcement of 10 May 2013, Churchill provided a preliminary estimate of its and Planet’s damages as a result of the actions taken by the Republic of Indonesia of not less than USD 1.054 billion, excluding interest. This estimate remains under review and Churchill and Planet will finalise their damages presentation in the course of the arbitration proceedings.
Please note that all data is delayed by at least 15 minutes.
- 23 June 2014 PDF RNS ICSID Update 23 June 2014
- 15 May 2014 PDF ICSID Update May 2014
- 19 March 2014 PDF Half Yearly Results