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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

In 2012, Churchill moved to file a claim of international arbitration against the Republic of Indonesia (“ROI”)  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.

In June 2014 Churchill/Planet’s lawyers, Quinn Emanuel Urquhart & Sullivan, LLP, filed a supplemental memorial on quantum and damages following the engagement of international valuation experts FTI Consulting Canada LLC who prepared an independent assessment of Churchill/Planet’s damages to Churchill/Planet of US$1,149.90 million plus pre-award interest of US$165.70 million for a total of US$1,315.60 million.

Information on the progress of Churchill/Planet’s claim against the Republic of Indonesia can be found at the website of the International Centre for Settlement of Investment Disputes at:

icsid.worldbank.org/apps/ICSIDWEB/Pages/default.aspx

(Search under cases for “Churchill”).

 

London Stock Exchange

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