http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Wed, 20 Jun 2018 02:45:16 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - International tribunal throws out Churchill Mining's damages claim against Republic of Indonesia ]]> http://www.proactiveinvestors.co.uk/companies/news/170108/international-tribunal-throws-out-churchill-mining-s-damages-claim-against-republic-of-indonesia-170108.html Churchill Mining PLC (LON:CHL) was dealt a hammer blow today after an international tribunal threw out its US$1bn-plus damages claim against the Republic of Indonesia and ordered the firm to pay around US$9.5mln in costs.

The firm was seeking a ruling from the International Centre for Settlement of Investment Disputes (ICSID) tribunal for US$1bn-plus damages from the Indonesian government after the expropriation of the firm's rights over the huge East Kutai coal mine in the country.

Churchill Chairman David Quinlivan said the firm was “obviously extremely disappointed by the Tribunal's decision.”

He added: “Indonesia has always conceded that the EKCP exploitation licenses were validly issued and signed and it is difficult to understand how the Tribunal found otherwise on the evidence available."

Churchill has been ordered to pay a total of US$9.446mln in costs and arbitration tribunal fees.

However, the firm believes there are grounds to annul the decision and said it is working with its lawyers Clifford Chance to determine which grounds may be best to pursue.

As part of that application, Churchill said it would seek a stay of the costs orders that have been made.

The group added that the suspension in trading of the company's shares on AIM, which it requested from yesterday ahead of the decision being made, will remain in place pending clarification of the company's financial position

The legal dispute over the seized asset has been long and convoluted. Proceedings began in May 2012 when Churchill took the case to the ICSID.

Churchill’s 100%-owned Australian subsidiary Planet Mining Pty, 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.

In February 2014, the ICSID ruled in Churchill’s favour, enabling it to pursue the claim for damages against the Indonesian government.

Four months later, following an independent valuation of the project by experts FTI Consulting, Churchill filed a total claim for damages of US$1.315 bn.

In June 2015, the Indonesian government dropped its own fraud claim against Churchill after it accepted that the Ridlatama Group - Churchill’s former business partner - were the sole perpetrators of the alleged fraud at the East Kutai coal mine.

The ICSID tribunal also concluded that there was no finding that Churchill or its officers were involved in any forgery of documents.

It said the forger of the disputed documents was most likely a person or persons acting for or on behalf of Ridlatama in collusion with a person inside the East Kutai Regency;

However, because Churchill's due diligence investigations conducted at the time of acquiring the East Kutai Coal licenses were insufficient, it has dismissed the damages application.

Churchill’s shares were suspended at 36.5p yesterday, having rallied strongly in the year to date since hitting a low of 12.5p in March on hopes for a positive decision from the tribunal.

The ICSID is an international arbitration institution established in 1965 for legal dispute resolution and conciliation between international investors. The ICSID is part of and funded by the World Bank Group, headquartered in Washington DC.

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Wed, 07 Dec 2016 10:20:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/170108/international-tribunal-throws-out-churchill-mining-s-damages-claim-against-republic-of-indonesia-170108.html
<![CDATA[News - Churchill Mining shares suspended with crucial tribunal decision imminent ]]> http://www.proactiveinvestors.co.uk/companies/news/170044/churchill-mining-shares-suspended-with-crucial-tribunal-decision-imminent-170044.html Trading in shares of Churchill Mining PLC (LON:CHL) were suspended this morning after the firm announced that a crucial tribunal decision on its US$1bn-plus damages claim against the Republic of Indonesia is imminent.

Churchill Mining said that its lawyers, Clifford Chance were provided with notice of the International Centre for Settlement of Investment Disputes (ICSID) tribunal’s intention to issue its decision on the Forgery Dismissal Application today.

The firm added that, as a result, it has requested a temporary suspension of trading in it shares on AIM from 7.30am today, with restoration of trading to take place after the company makes an announcement on the Tribunal's decision.

Churchill said it will release its notification as soon as possible after it has had the opportunity to review the decision.

The ICSID is an international arbitration institution established in 1965 for legal dispute resolution and conciliation between international investors. The ICSID is part of and funded by the World Bank Group, headquartered in Washington DC.

The firm is seeking compensation from the Indonesian government after the expropriation of the firm's rights over the huge East Kutai coal mine in the country, which was modelled into accounts as having a hefty pre-tax net asset value of US1.8bln.

The world class project could generate 30 million tonnes of high grade thermal coal each year, for an initial 25-year life and generate cash flow of US$500mln per annum.

The legal dispute over the seized asset has been long and convoluted. Proceedings began in May 2012 when Churchill took the case to the ICSID.

Churchill’s 100%-owned Australian subsidiary Planet Mining Pty, 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.

Churchill and Planet Mining are seeking damages of not less than US$1.05bn, excluding interest, to settle the long-running dispute.

In February 2014, the ICSID ruled in Churchill’s favour, enabling it to pursue the claim for damages against the Indonesian government.

Four months later, following an independent valuation of the project by experts FTI Consulting, Churchill filed a total claim for damages of US$1.315 bn.

The damages case centres on Churchill’s claim that following its investment in Indonesia, initially supported by the Indonesian government, it discovered substantial coal deposits after which the government took unlawful actions.

International arbitration is often the best dispute resolution choice for investors in the mining sector because it usually removes the dispute to a fair and neutral offshore arena.

In June 2015, the Indonesian government dropped its own fraud claim against Churchill after it accepted that the Ridlatama Group - Churchill’s former business partner - were the sole perpetrators of the alleged fraud at the East Kutai coal mine.

Churchill’s shares were suspended at 36.5p today, having rallied strongly in the year to date since hitting a low of 12.5p in March on hopes for a positive decision from the ICSID tribunal.

 

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Tue, 06 Dec 2016 11:57:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/170044/churchill-mining-shares-suspended-with-crucial-tribunal-decision-imminent-170044.html
<![CDATA[News - Churchill Mining has support and could kick on to 42p ]]> http://www.proactiveinvestors.co.uk/companies/news/167721/churchill-mining-has-support-and-could-kick-on-to-42p-167721.html Churchill Mining PLC (LON:CHL), the Indonesia-focused coal stock, has technical support to add another 50% onto its current share price, according to chartist Zak Mir.

The King of Charts, in a TIP TV segment for Proactive, reckons the stock has the potential to hit 42p, a claim which he says is backed up by the technical analysis.

“The 200 day moving average, at 21 pence and rising, is presumably providing some positive momentum for the stock.”

WATCH: Zak spells out his logic

He adds that the technical target of 42p is valid while shares remain above 25p.

The recent results from Churchill reveal it is continuing with a claim worth US$1.35bn against the Republic of Indonesia with regard to the East Kutai Coal Project.

The company ended the financial year to June 30 with US$1.47mln, having started the period with US$2.05mln.

Northland Capital rates the stock a ‘speculative buy’.

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Thu, 20 Oct 2016 14:15:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/167721/churchill-mining-has-support-and-could-kick-on-to-42p-167721.html
<![CDATA[Media files - Churchill Mining has the technical momentum to add 50%, says Zak Mir ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/6221/churchill-mining-has-the-technical-momentum-to-add-50-says-zak-mir-6221.html Thu, 20 Oct 2016 12:45:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/6221/churchill-mining-has-the-technical-momentum-to-add-50-says-zak-mir-6221.html <![CDATA[News - Churchill Mining climbs as Indonesia drops fraud claim ]]> http://www.proactiveinvestors.co.uk/companies/news/107741/churchill-mining-climbs-as-indonesia-drops-fraud-claim-107741.html Thu, 04 Jun 2015 13:41:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/107741/churchill-mining-climbs-as-indonesia-drops-fraud-claim-107741.html <![CDATA[News - Churchill Mining files US$1.315bn claim for damages in East Kutai case ]]> http://www.proactiveinvestors.co.uk/companies/news/59356/churchill-mining-files-us1315bn-claim-for-damages-in-east-kutai-case-69712.html Churchill Mining (LON:CHL) is filing a US$1.315 billion claim for damages against the Indonesian government for the expropriation of the firm's rights over the huge East Kutai coal mine.

It follows an independent valuation of the project by experts FTI Consulting for Churchill and 100% subsidiary Planet Mining.

FTI have put the damages to Churchill/Planet of US$1.149bn plus pre-award interest of US$165.70 mln for a total of US$1.315bn.

In March last year, Churchill filed for damages to the tune of just over $1 billion (£622.1 million) but today's figure is higher.

The case centres on Churchills's claim that following its investment in Indonesia, initially supported by the Indonesian government, it discovered substantial coal deposits after which the government took unlawful actions.

A feasibility study has put the pre-tax net present value of the mine at US$1.8bn, an internal rate of return of 21% and a payback period of seven years.

Churchill chairman David Quinlivan said: "This valuation further confirms the billion dollar plus loss that we believe was suffered by our shareholders as a result of the actions taken by the Republic of Indonesia in relation to the EKCP mining tenements."

The next step in the proceedings is that the Republic of Indonesia is now required to file its memorial of defence by November 12 this year.

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Mon, 23 Jun 2014 13:38:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/59356/churchill-mining-files-us1315bn-claim-for-damages-in-east-kutai-case-69712.html
<![CDATA[News - Churchill Mining clear to pursue damage claim in Indonesia ]]> http://www.proactiveinvestors.co.uk/companies/news/55986/churchill-mining-clear-to-pursue-damage-claim-in-indonesia--66132.html Churchill Mining (LON:CHL) said an international tribunal had ruled in its favour, enabling it to pursue claims for damages against the Indonesian government relating to the expropriation of the firm's rights over the huge East Kutai coal mine.

Shares in the AIM-listed company were up almost 40% after trading in the shares resumed following a temporary suspension.

The International Centre for Settlement of Investment Disputes (ICSID) arbitral tribunal rejected Indonesia's challenges to the tribunal's jurisdiction, Churchill said.

Churchill, and its Australian subsidiary Planet Mining Pty, are seeking damages of not less than US$1.05bn, excluding interest, to settle the long-running dispute. The company began arbitration against the Indonesian government in May 2012 at the ICSID in Washington.

The East Kutai Coal project is a world-class thermal coal deposit with a JORC resource of 2.730 billion tonnes.

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Tue, 25 Feb 2014 13:16:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/55986/churchill-mining-clear-to-pursue-damage-claim-in-indonesia--66132.html
<![CDATA[News - Churchill Mining awaits jurisdiction hearing decision as arbitration continues ]]> http://www.proactiveinvestors.co.uk/companies/news/48070/churchill-mining-awaits-jurisdiction-hearing-decision-as-arbitration-continues-57293.html Churchill Mining (LON:CHL) updated on the latest in its arbitration proceedings against the Republic of Indonesia, saying a jurisdiction hearing had been held in Singapore.

It said the decision following the hearing, which was held on May 13 and 14, would be likely to take weeks or months and there is no fixed date.

The tribunal was dealing with the challenge from the Republic that the tribunal does not actually have jurisdiction to hear the group's claim for compensation.

As reported in March this year, the arbitration cases for Churchill and its subsidiary, Planet, have been consolidated into a single proceeding and will be heard together.

They are seeking compensation from the Republic after the expropriation of the firm's rights over the huge East Kutai coal mine in Indonesia.

Churchill and Planet were represented by the international law firm Quinn Emanuel Urquhart & Sullivan, LLP.

 

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Fri, 24 May 2013 08:46:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/48070/churchill-mining-awaits-jurisdiction-hearing-decision-as-arbitration-continues-57293.html
<![CDATA[News - Churchill Mining shares rocket after updates on arbitration latest ]]> http://www.proactiveinvestors.co.uk/companies/news/47621/churchill-mining-shares-rocket-after-updates-on-arbitration-latest-56766.html Churchill Mining (LON:CHL) shares rocketed as it revealed that, along with Australian subsidiary Planet Mining, it has filed further material with the arbitration tribunal concerning its claim against the Republic of Indonesia.

As reported in March, the Churchill and Planet arbitrations have now been consolidated into a single proceeding and will be dealt with and heard together at the International Centre for Settlement of Investment Disputes (ICSID) in Washington.

They are seeking compensation from the Republic of Indonesia (ROI) after the expropriation of the firm's rights over the huge East Kutai coal mine in Indonesia.

Planet, via its 5% stake in PT Indonesia Coal Development, also holds an interest in the project.

Churchill/Planet currently quantify their losses and seek damages of US$ 1,054 million, excluding interest, based on industry analysis, Churchill said today.

Key elements of the latest supplementing memorial and export evidence include that: Indonesia initially supported and encouraged Churchill/Planet to invest.

Also, that after Churchill/Planet's discovery of substantial coal deposits, the Republic took a series of unlawful actions that resulted in the destruction of Churchill/Planet's valuable investment; the actions of the ROI constitute blatant violations of the obligations it has undertaken under its Bilateral Investment Treaties with the UK and Australia.

The next key hearing will be one in Singapore beginning May 13 that will deal with the challenge from the Republic that the arbitration tribunal does not actually have jurisdiction to hear the group's claim for compensation.

Shares in Churchill rocketed over 45% today to stand at 45p.

Since Australian international litigation veteran Nicholas Smith was appointed as new managing director at Churchill last September, shares in the firm have  almost tripled in value.

 

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Fri, 10 May 2013 13:01:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/47621/churchill-mining-shares-rocket-after-updates-on-arbitration-latest-56766.html
<![CDATA[News - Churchill Mining shares lifted as arbitration proceedings move on ]]> http://www.proactiveinvestors.co.uk/companies/news/46832/churchill-mining-shares-lifted-as-arbitration-proceedings-move-on-55857.html The recent sharp increase in the share price of Churchill Mining (LON:CHL) suggests investors are now dialling into the potential of what could be a bumper pay-out for the mining company if arbitration proceedings go its way.

Shares trebled in value since the middle of last month to reach a high of 33.25p.

They started their journey upwards after an interim results statement at the tail end of last month, which updated investors on the primary focus of all the company's current energy: its ongoing claim against the Republic of Indonesia.

The firm is seeking compensation from the Republic after the expropriation of the firm's rights over the huge East Kutai coal mine in Indonesia, which has been modelled as having a pre-tax net asset value of a whopping US1.8 billion.

The project could generate 30 million tonnes of high grade thermal coal each year, for an initial 25-year life and generate cash flow of US$500mln per annum.

The legal dispute over the asset has been long and convoluted and the stock exchange statement on March 22 outlined the key moments in the case past, present and ahead.

Proceedings began in May last year when Churchill took the case to the International Centre for Settlement of Investment Disputes (ICSID) in Washington.

Notably, the case is now entering a "critical phase", says house broker Northland, and a key hearing will be one in Singapore beginning May 13 that will deal with the challenge from the Republic that the arbitration tribunal does not actually have jurisdiction to hear the firm's claim for compensation.

If this milestone hearing goes Churchill's way then the chance of recovering funds for shareholders improves, the broker reckons.

Other significant factors are that the company's Australian subsidiary Planet Mining Pty, which holds an interest in the coal project, has now also filed for arbitration at ICSID, and the case is now a single proceeding.

For the six months to December 31 last year, Churchill posted a loss before tax of US$4.5mln, compared to a loss of US$ 6.4mln in the same period a year earlier.

It remains well funded to pursue the arbitration, having US$6.2 million in the bank.

"The board will continue to focus on seeking a suitable remedy for shareholders and I thank shareholders for their continued support and will update on the company's progress during the second half of the year."

The world class East Kutai Coal project has a JORC resource of 2.730 billion tonnes, which consists of a measured resource of 693.3mln tonnes (Mt), indicated of 825.1 Mt and inferred of 1,211.8 Mt.

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Tue, 16 Apr 2013 10:30:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/46832/churchill-mining-shares-lifted-as-arbitration-proceedings-move-on-55857.html
<![CDATA[News - Churchill Mining outlines key steps in arbitration over East Kutai ]]> http://www.proactiveinvestors.co.uk/companies/news/46154/churchill-mining-outlines-key-steps-in-arbitration-over-east-kutai--55067.html ---Update with share price and broker comment---

Churchill Mining (LON:CHL) updated investors on its ongoing claim against the Republic of Indonesia through international arbitration, and repeated that this is currently the firm's main focus.

In an interim results statement, the firm outlined the key steps, past and ahead, of the case regarding the US$1.8 billion East Kutai coal mine development project in Indonesia.

In May last year, the firm began arbitration against the Republic of Indonesia (ROI) at the International Centre for Settlement of Investment Disputes (ICSID) in Washington.

Notably, Churchill's Australian subsidiary Planet Mining Pty, which via its 5% stake in PT Indonesia Coal Development also holds an interest in the East Kutai Coal Project, has now also filed for arbitration at ICSID.

The Churchill and Planet arbitrations have now been consolidated into a single proceeding and will be dealt with and heard together, the firm pointed out today.

On March 13 this year, Churchill and Planet filed their witness statements as well as initial expert evidence at ICSID.

ROI is now required to file its objections to jurisdiction by April 8 this year and Churchill/Planet will then file their response to that by April 30.

Also ahead is a hearing in Singapore beginning May 13 to address a challenge by the ROI that the arbitration tribunal does not have the jurisdiction to hear the claim at all.

"Considerable efforts have been undertaken to reduce other administration and corporate overheads," Churchill said, adding that other than admin costs, arbitrations against the ROI are the only draw on Churchill's cash resources.

For the six months to December 31 last year, Churchill posted a loss before tax of US$4.5mln, compared to a loss of US$ 6.4mln in the same period a year earlier.

House broker Northland noted that the international arbitration was now "entering a critical phase".

"If Churchill receives a favourable judgement on jurisdiction then the potential for recovering funds for shareholders should improve," said analyst Andrew McGeary.

"Progress under arbitration looks positive so far but as with all such legal disputes the ultimate outcome remains uncertain."

Shares dipped 2.38% to 10.25p.

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Fri, 22 Mar 2013 09:51:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/46154/churchill-mining-outlines-key-steps-in-arbitration-over-east-kutai--55067.html
<![CDATA[News - Churchill Mining has a solid base to continue arbitration claim in the coming year ]]> http://www.proactiveinvestors.co.uk/companies/news/41553/churchill-mining-has-a-solid-base-to-continue-arbitration-claim-in-the-coming-year-49548.html Churchill Mining (LON:CHL) today said its ongoing claim against the Republic of Indonesia, via international arbitration, remains the company’s main focus and principle activity.

In this morning’s results statement, Churchill said that its cash position, of $12 million, is healthy and it provides a solid base to continue the arbitration claim over the coming year.

The company made its claim in May to the International Centre for Settlement of Investment Disputes (ICSID) in Washington DC.

And earlier this month the appointment of an arbitration panel was confirmed. The company took this as a positive as it believed it signalled that the claim was moving forward.

“Churchill is seeking the full relief owed to it under the provisions of the UK-Indonesia BIT and under international law,” the company said in this morning’s results statement.

“The company looks forward to now addressing and rectifying these issues on the independent platform that international arbitration at ICSID provides.”

Churchill explained that with a panel now formally constituted the next phase of the arbitration process will begin, with the investigation and determination of the merits of Churchill's claim.

The company nominated Professor Albert Jan van den Berg of the Netherlands as one of the three panel members, while Indonesia appointed Michael Hwang SC of Singapore as the second member. 

Both parties agreed upon Professor Gabrielle Kaufmann-Kohler of Switzerland as the third and presiding member of the panel. 

 

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Thu, 25 Oct 2012 08:30:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/41553/churchill-mining-has-a-solid-base-to-continue-arbitration-claim-in-the-coming-year-49548.html
<![CDATA[News - Churchill Mining shares advance as arbitration claim moves forward ]]> http://www.proactiveinvestors.co.uk/companies/news/41208/churchill-mining-shares-advance-as-arbitration-claim-moves-forward-49138.html

Churchill Mining (LON:CHL) shares advanced around 13% on AIM this morning as it confirmed the appointment of an arbitrational panel to its legal claim against the Republic of Indonesia.

The company made its claim in May to the International Centre for Settlement of Investment Disputes (ICSID) in Washington DC. 

The company says that the appointment of a panel is positive as it signals that the arbitrational claim is moving forward.

"Indonesia first seemed to be in denial about its obligation to respond to the ICSID arbitration, so it is positive that Indonesia now appears to have accepted that Churchill is entitled to have its case heard," said managing director Nicholas Smith.

Smith adds: "Indonesia recently issued two Presidential Decrees that appear to place the responsibility for the ICSID arbitration with the East Kutai regional government. 

“While I can't speak to the Indonesian government's reasoning for doing this, the principles of international law are clear. The primary liability to satisfy any judgement or arbitral award will always be the responsibility of the Republic of Indonesia, i.e. the central government, which acts as a guarantor for its regional or provincial governments."

Churchill explained that with a panel now formally constituted the next phase of the arbitration process will begin, with the investigation and determination of the merits of Churchill's claim.

The company nominated Professor Albert Jan van den Berg of the Netherlands as one of the three panel members, while Indonesia appointed Michael Hwang SC of Singapore as the second member. 

Both parties agreed upon Professor Gabrielle Kaufmann-Kohler of Switzerland as the third and presiding member of the panel. 

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Mon, 15 Oct 2012 09:37:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/41208/churchill-mining-shares-advance-as-arbitration-claim-moves-forward-49138.html
<![CDATA[News - Churchill Mining appoints international legal expert as new MD ]]> http://www.proactiveinvestors.co.uk/companies/news/40398/churchill-mining-appoints-international-legal-expert-as-new-md-48186.html

Churchill Mining (LON:CHL) has appointed an international litigation veteran as its new managing director as it battles with the Indonesian government for compensation over its East Kutai coal project.

Australian Nicholas Smith has extensive experience advising companies on major litigation and arbitration disputes, including disputes involving bilateral investment treaties and international disputes, Churchill said.

He worked for more than 10 years as group general counsel for Normandy Mining, at one time Australia's largest gold producer and which had interests in a number of international projects enjoying the protection of bilateral investment treaties.

“On behalf of the board and our shareholders, I look forward to his contribution in leading the ICSID arbitration that Churchill has commenced against the Republic of Indonesia. The ICSID arbitration has in effect become Churchill's principal activity and focus for the company," said Churchill's chairman David Quinlivan.

Churchill acquired the East Kutai project in 2007 when it bought a 75% stake in Indonesian group Ridlatama after the previous owner Nusantra failed to extend the licences in 2006 and 2007.

Churchill subsequently discovered vast coal reserves, after which the East Kutai Regency granted an extension to Nusantra’s previous licences.

In March 2011, a tribunal ruled that Churchill and Ridlatama no longer owned the East Kutai project.

On 22 May this year, Churchill filed a claim against the Republic of Indonesia for breaches of Indonesia's obligations under the Bilateral Investment Treaty with the UK at the International Centre for Settlement of Investment Disputes ("ICSID") in Washington.

Churchill said it is seeking the full relief owed to it under the provisions of the UK-Indonesia BIT and under international law.

David Quinlivan will continue in the role of non-executive chairman working alongside Nicholas Smith.

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Tue, 18 Sep 2012 12:04:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/40398/churchill-mining-appoints-international-legal-expert-as-new-md-48186.html
<![CDATA[News - Churchill Mining says arbitration body accepts jurisdiction over dispute with Indonesia ]]> http://www.proactiveinvestors.co.uk/companies/news/37264/churchill-mining-says-arbitration-body-accepts-jurisdiction-over-dispute-with-indonesia-44555.html  

Churchill Mining’s (LON:CHL) request for arbitration of its dispute with the Indonesian authorities over the East Kutai Coal Project has been registered with the International Centre for Settlement of Investment Disputes in Washington.

Registration means the ICSID has accepted it has jurisdiction over the matter under the Bilateral Investment Treaty between the UK and the Republic of Indonesia.

"The board of Churchill is pleased that ICSID has registered the request for arbitration and that the arbitral proceedings have been formally initiated,” said Churchill's chairman David Quinlivan.

“Churchill will be seeking the full relief owed to it under the provisions of the UK-Indonesia BIT and under International law." 

The next step in the process will be to appoint a three-member “arbitral tribunal” that will adjudicate the dispute. 

The secretary-general of ICSID has invited Churchill and the Republic of Indonesia to proceed as soon as possible, “to constitute the arbitral tribunal”, the company told investors this morning.

It filed the formal request for arbitration last month citing breaches by Indonesia of its obligations under the UK-Indonesia Bilateral Investment Treaty.

The firm has been entrenched in a legal battle against the Indonesian government for the past year.  The case has put the future of the US$1.8 billion East Kutai coal mine development project in the balance.

Churchill has previously said it has been subjected to a sustained campaign to expropriate its rights as a legitimate foreign investor in Indonesia. 

The company believes these actions are in direct breach of both Indonesia's investment laws and the country’s obligations under a number of international investment treaties.

The ‘expropriation campaign’, as Churchill calls it, centres of an attempt to cancel the licences that host the East Kutai project by regional authorities that govern the East Kalimantan province.

“The company will provide further updates on the progress of the international arbitration claim when available,” Churchill said.

 

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Mon, 25 Jun 2012 08:03:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/37264/churchill-mining-says-arbitration-body-accepts-jurisdiction-over-dispute-with-indonesia-44555.html
<![CDATA[News - Churchill Mining receives written confirmation of Supreme Court decision in Indonesia ]]> http://www.proactiveinvestors.co.uk/companies/news/36903/churchill-mining-receives-written-confirmation-of-supreme-court-decision-in-indonesia-44133.html Churchill Mining (LON:CHL) today said it was actively moving forward with its international arbitration claim after it received written confirmation that its appeal in the Indonesian Supreme Court had failed.

The company revealed in April that notations on the register of the Supreme Court showed the court intended to reject the appeal.

"We are disappointed in the written decisions confirming the rejection of our appeal,” said chairman David Quinlivan.

“We are underway with the International Arbitration claim against the Republic of Indonesia to seek a legitimate remedy for our shareholders and protect our rights as a foreign investor in Indonesia." 

The firm has been entrenched in a legal battle against the Indonesian government. 

Churchill says it has been subjected to a sustained campaign to expropriate its rights as a legitimate foreign investor in Indonesia.

The company believes these actions are in direct breach of both Indonesia's investment laws and Indonesia's obligations under a number of international investment treaties.

The ‘expropriation campaign’, as Churchill calls it, centres on the cancellation of licences that host the East Kutai coal project by regional authorities that govern the East Kalimantan province, the area on the island of Borneo where the project is found.

The decision from the Supreme Court affirms that the decrees of the Regent of East Kutai revoking the mining licences were validly issued, Churchill said today.

Churchill has already filed a claim at the International Centre for Settlement of Investment Disputes (ICSID) in Washington against the Republic of Indonesia. It told investors that it will provide updates on the progress of the international arbitration claim when available.

It also said today that it will, when it is appropriate, provide an update on steps it may take in relation to a possible Civil Review of the Supreme Court’s decision.

 

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Thu, 14 Jun 2012 08:02:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/36903/churchill-mining-receives-written-confirmation-of-supreme-court-decision-in-indonesia-44133.html
<![CDATA[News - Churchill Mining files international arbitration against Indonesia ]]> http://www.proactiveinvestors.co.uk/companies/news/36137/churchill-mining-files-international-arbitration-against-indonesia-43194.html Churchill Mining (LON:CHL) said it has now filed for international arbitration in its dispute regarding the East Kutai coal project (EKCP) in Indonesia, 75 per cent owned by Churchill.

It has filed a claim yesterday, May 22, at the International Centre for Settlement of Investment Disputes (ICSID) in Washington, DC, against the Republic of Indonesia for breaches of its obligations under the Bilateral Investment Treaty (BIT) with the UK.

It had announced its plan to file the arbitration at the beginning of May.

Churchill told investors it is seeking full relief owed to it under the provisions of the UK-Indonesia BIT and under international law.
 
Churchill chairman, David Quinlivan commented: "The board of Churchill is concerned that it has had to resort to international arbitration with an emerging economy such as the Republic of Indonesia. 

“At all levels there seems to be a lack of support from Indonesia with regard to our contentions on the EKCP. We look forward to now addressing and rectifying these issues on the balanced platform that international arbitration at ICSID provides foreign investors."    
 
The company will inform the market when further information becomes available.

Churchill filing for international arbitration at ICSID follows Indonesia's failure to rectify the issues described in two previous letters to the President of Indonesia, the group said. 

Both letters emphasized that following a significant investment in the EKCP Churchill identified a world class thermal coal deposit in East Kalimantan.

Shortly thereafter, Churchill became the subject of a sustained campaign designed to divest Churchill's legitimate rights to develop this deposit and the EKCP.
 
The international arbitration will run in parallel with the current proceedings at the Supreme Court of Indonesia that seek to overturn lower administrative tribunal and court decisions in relation to the revocation of four mining licenses that cover the EKCP, Churchill added

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Wed, 23 May 2012 10:15:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/36137/churchill-mining-files-international-arbitration-against-indonesia-43194.html
<![CDATA[News - Churchill Mining appoints John Nagulendran as non-exec director ]]> http://www.proactiveinvestors.co.uk/companies/news/35663/churchill-mining-appoints-john-nagulendran-as-non-exec-director-42606.html Churchill Mining (LON:CHL) has appointed John Nagulendran as a non-executive director.

Nagulendran serves as the assistant general counsel of Pala Investments AG, the exclusive advisor to Pala Investments Holdings Ltd, a substantial shareholder of Churchill.

Prior to joining Pala Investments, he was a practising lawyer at international law firm Herbert Smith LLP, where he specialized in the energy and natural resources sectors.

He has worked in London, Singapore and Jakarta advising major corporates on acquisitions, disposals and equity financing.

Prior to Herbert Smith, Nagulendran was at Rajah & Tann LLP, working on commercial and banking litigation matters. He is qualified as a solicitor in England & Wales and an advocate & solicitor in Singapore.

Nagulendran replaces Jan Castro, who has resigned as one of Pala's representatives on the Churchill board.

Chairman David Quinlivan said: "We are delighted to gain the commercial and legal experience of Mr Nagulendran as we enter the phase of international arbitration against the Republic of Indonesia.“

Only last week, the group filed a further formal letter to the President of Indonesia, seeking support and legal protection in order to achieve an amicable and commercial resolution to the dispute regarding the East Kutai coal project (EKCP), 75 per cent owned by  Churchill.

The company believes that various Indonesian parties, both government and private, aim to expropriate its legitimate rights to develop the project.

Churchill believes these actions to be in direct breach of both Indonesian law and Indonesia's obligations under the Bilateral Investment Treaty between the United Kingdom and the Republic of Indonesia.

It is preparing an arbitration claim against Indonesia for direct breaches of the country’s obligations under the abovementioned treaty.   It plans to file its claim at the International Centre for Settlement of Investment Disputes in Washington later this month.

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Thu, 10 May 2012 11:13:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/35663/churchill-mining-appoints-john-nagulendran-as-non-exec-director-42606.html
<![CDATA[News - Churchill Mining files new formal letter to Indonesia president in East Kutai coal project dispute ]]> http://www.proactiveinvestors.co.uk/companies/news/35471/churchill-mining-files-new-formal-letter-to-indonesia-president-in-east-kutai-coal-project-dispute-42365.html Churchill Mining (LON:CHL) has filed a further formal letter to the President of Indonesia, seeking support and legal protection in order to achieve an amicable and commercial resolution to the dispute regarding the East Kutai coal project (EKCP), 75 per cent owned by  Churchill.

It told investors that the letter highlights the company's investment in Indonesia and the subsequent actions of various Indonesian parties, both government and private, aimed at expropriating its legitimate rights to develop the project.

Churchill believes these actions to be in direct breach of both Indonesian law and Indonesia's obligations under the Bilateral Investment Treaty between the United Kingdom and the Republic of Indonesia.

The letter follows initial formal correspondence in November 2011 and also the recent notations on the Indonesian Supreme Court's register of cases, that indicates the Supreme Court intends to reject the appeal by Churchill/Ridlatama in relation to the revocation of the four mining licenses that comprise the EKCP.

Chairman David Quinlivan said: "We are determined to continue to seek a full and legitimate remedy for our shareholders and have provided the opportunity for government intervention to protect our rights as a foreign investor in Indonesia."

The firm has been entrenched in a legal battle against the Indonesian government for the past year. The case has put the future of the US$1.8 billion East Kutai coal mine development project in the balance.

Churchill continues to prepare its arbitration claim against Indonesia for direct breaches of the country’s obligations under the abovementioned treaty.

As previously advised the company will file its claim at the International Centre for Settlement of Investment Disputes in Washington in late May 2012.

The chairman told Proactive Investors last month that the total cost of a prolonged arbitration process could be in excess of US$5 million, and that Churchill currently has over US$13 million in the bank.

“At the moment we have sufficient funds (to cover the arbitration process). If it is going to turn into a long litigation case we would scale back and regroup.

"We’ve had estimates from our legal team about how much a long drawn out case would cost, and we’ve certainly got more than enough to last three to four years.”

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Fri, 04 May 2012 08:20:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/35471/churchill-mining-files-new-formal-letter-to-indonesia-president-in-east-kutai-coal-project-dispute-42365.html
<![CDATA[News - Churchill Mining: Preparing next steps in Indonesian legal battle ]]> http://www.proactiveinvestors.co.uk/companies/news/34658/churchill-mining-preparing-next-steps-in-indonesian-legal-battle-41332.html The news that Indonesia’s Supreme Court intends to reject Churchill Mining’s (LON:CHL) appeal is clearly a blow, however the firm’s fate does not rely solely on this one ruling alone.

Last week Churchill’s shares shed as much as 30 per cent with the news. 

One way or another, the Supreme Court’s final decision will provide investors with clarity on what Churchill’s next move will be. Last week, Churchill reported that notations on the register of the Supreme Court show it intends to reject the appeal.

The firm has been entrenched in a legal battle against the Indonesian government for the past year.  The case has put the future of the US$1.8 billion East Kutai coal mine development project in the balance.

Churchill says it has been subjected to a sustained campaign to expropriate its rights as a legitimate foreign investor in Indonesia. 

The company believes these actions are in direct breach of both Indonesia's investment laws and Indonesia's obligations under a number of international investment treaties.

The ‘expropriation campaign’, as Churchill calls it, centres of an attempt to cancel the licences that host the East Kutai project by regional authorities that govern the East Kalimantan province, the area on the island of Borneo where the project is found.

Speaking with Proactive Investors, chairman David Quinlivan said he believes Churchill did all the right things in Indonesia and it spent a lot of money on exploration.

With the apparently unsuccessful Supreme Court appeal, Churchill will have had three failed attempts to overturn a decision in a regional tribunal relating to the revocation of mining licences for the East Kutai project, which prior to the legal problems was on the verge of development.

Churchill has been actively preparing contingency plans in the six months since it filed the Supreme Court appeal.

Firstly, it sought a possible commercial settlement to end the dispute, and to this end it sent a letter to Indonesia’s president Susilo Bambang Yudhoyono in November.

“Our representative sent a letter to the President in November saying that we would like to resolve the matter commercially, and we hoped that he could help bring the parties together to achieve a commercial settlement.

A commercial settlement, basically a compensation deal, would also allow both parties to move on without any further fuss. 

But, as yet, Churchill has not received any response from the President’s office.

Prior to the legal fallout, Churchill had taken East Kutai to the verge of development with it only needing a project financing deal before construction work could start.

Quinlivan says it could take another firm a number of years to reach this point again and Churchill has no intention of handing over its valuable knowledge without an agreeable settlement.

Quinlivan says the letter to the President effectively opened a six month window of opportunity to achieve a settlement.

“We have to keep an open mind at the moment. Nothing is being ruled in or out.”

That said, Churchill hasn’t been able to catch a break in this legal battle so far, and as such the firm has also prepared to pursue a case in international courts if necessary.

Quinlivan says Churchill will file the application for arbitration to the International Centre for Settlement of Investment Disputes (ICSID) in Washington, if a settlement can’t be agreed by the end of that six month window - i.e. by the end of May.

Churchill said it will now accelerate the filing of an arbitration request against the Republic of Indonesia for direct breaches of Indonesia's investment laws and Indonesia's obligations under international investment treaties – namely the United Kingdom - Indonesia Bilateral Investment Treaty.

Preparation of the arbitration claim is well advanced and a ‘Request for Arbitration’ will be filed shortly, it explained.

The total cost of a prolonged arbitration process could be in excess of US$5 million. And Churchill has confirmed it currently has over US$13 million in the bank.

“At the moment we have sufficient funds (to cover the arbitration process). If it is going to turn into a long litigation case we would scale back and regroup. 

“We’ve had estimates from our legal team about how much a long drawn out case would cost, and we’ve certainly got more than enough to last three to four years.”

It has been a very bumpy ride for investors since the legal battle flared up publicly in March last year. 

In that time Churchill shares have lost almost 90 per cent of their value, falling from around 90p to stand today at 9.2p.

If any positives can be taken from last week's update it is that while there could still be a number of further twists and turns in the coming months Churchill can now pursue its case in an independent international court.

 

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Wed, 11 Apr 2012 09:19:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/34658/churchill-mining-preparing-next-steps-in-indonesian-legal-battle-41332.html
<![CDATA[News - Churchill Mining to accelerate international arbitration as Indonesia’s Supreme Court rejects appeal ]]> http://www.proactiveinvestors.co.uk/companies/news/34459/churchill-mining-to-accelerate-international-arbitration-as-indonesias-supreme-court-rejects-appeal--41073.html Churchill Mining (LON:CHL) said it will now look to accelerate its filing of an international arbitration claim against the Republic of Indonesia.

This comes as the firm reported that notations on the register of Indonesia’s Supreme Court show the court has rejected the company’s appeal.

The appeal was an attempt to overturn a decision in a regional tribunal relating to the revocation of mining licences for the US$1.8 billion East Kutai coal project, which prior to the legal problems was on the verge of development.

"It's disappointing to see this notation on the case register,” said chairman David Quinlivan.

“We are determined to continue to seek a legitimate remedy for our shareholders and protect our rights as a foreign investor in Indonesia."

Churchill shares fell almost 20 per cent on AIM this morning to trade at 10p each.

Alongside the appeal, Churchill also sought a possible commercial settlement to end the dispute, and to this end it sent a letter to Indonesia’s president Susilo Bambang Yudhoyono in November.

The letter highlighted that following a significant investment in exploration, Churchill identified a world-class thermal coal deposit in East Kalimantan, only to be subjected to a sustained campaign designed to expropriate Churchill's legitimate rights to develop this deposit, Churchill said.

The company has yet to receive a response to the letter.

Churchill says it will now move its attention to preparing and filing a claim against the Republic of Indonesia for direct breaches of Indonesia's investment laws and Indonesia's obligations under international investment treaties – namely the United Kingdom - Indonesia Bilateral Investment Treaty.

Preparation of the arbitration claim is well advanced and a ‘Request for Arbitration’ will be filed shortly, it explained.

Churchill also told investors it currently has US$13.84 million in the bank.

 

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Tue, 03 Apr 2012 08:34:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/34459/churchill-mining-to-accelerate-international-arbitration-as-indonesias-supreme-court-rejects-appeal--41073.html
<![CDATA[News - Churchill Mining to consider international arbitration in Indonesia dispute ]]> http://www.proactiveinvestors.co.uk/companies/news/33864/churchill-mining-to-consider-international-arbitration-in-indonesia-dispute-40361.html Churchill Mining (LON:CHL) today said it may start international arbitration proceedings against the Republic of Indonesia.

It says the company has been subjected to a sustained campaign to expropriate its rights as a legitimate foreign investor in Indonesia. The company believes these actions are in direct breach of both Indonesia's investment laws and Indonesia's obligations under a number of international investment treaties.

This has come after the company’s significant investment in coal exploration in the country, it adds.

Churchill explained that it sent a formal letter to the government in November seeking cooperation from senior officials to assist in achieving an amicable and commercial resolution to the investment dispute it is facing. 

If an amicable solution cannot be achieved the company will look to international arbitration, it said.

Churchill has a 75 per cent stake in the East Kutai project, which has a huge resource with a JORC compliant estimate of 2.7 billion tonnes of coal and a pre-tax net present value of US$1.8 billion.

The East Kutai project is a highly strategic asset, ideally located both in relation to core energy consuming markets, and in the context of rising demand for energy resources such as high quality thermal coal, Churchill said.

However, the company is currently worth just £16 million as a result of its legal problems.

Initially Churchill was in a dispute with the regional authorities that govern the East Kalimantan province, the area on the island of Borneo which hosts the East Kutai project.

It is currently awaiting an appeal in the Supreme Court of Indonesia.

The appeal was originally launched to try and overturn the decision by the Administrative Tribunal in Samarinda, East Kalimantan, concerning the revocation of the four mining licenses that comprise the East Kutai coal project.

Churchill acquired the licences in 2007 through an acquisition of a 75 per cent stake in Indonesian group Ridlatama after the previous owner Nusantra failed to extend the licences in 2006 and 2007.

Separately, Churchill is also in dispute with Ridlatama, and parties related to Ridlatama. Legal proceedings are underway against a number of parties in relation to this dispute.

Today, in the group’s interim results statement, Churchill said that most development and construction activities at the project have been suspended pending the appeal decision of the Supreme Court.  

“We have, however, continued to support the local East Kutai communities through ongoing community development and social programs,” the company said.

“Transportation assistance has been provided to local and public service organisations in and around the EKCP site and we have also assisted local communities with infrastructure maintenance where requested.  

“The East Kutai population continues to strongly support our endeavours to maintain our licences despite the fact that employment numbers in both our land acquisition teams and base camp have been significantly reduced as a result of the actions of the regional government.”

Churchill reported a US$6.4 million loss for the period, which increased from US$3 million last year.

Expenses were increased at US$5.1 million due to a higher spend on public relations, government and media outreach costs, legal, professional and consulting expenses. 

Within that, legal and professional fees totalled US$1.5 million, which reflects the significant costs incurred as a result of the Administrative Tribunal, subsequent appeal to the Supreme Court of Indonesia and the on-going dispute with Ridlatama, Churchill said.

As of December 31 2011, Churchill had US$22.4 million in cash and it said it presently has US$14.3 million in the bank.

 

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Fri, 16 Mar 2012 14:15:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/33864/churchill-mining-to-consider-international-arbitration-in-indonesia-dispute-40361.html
<![CDATA[News - Churchill Mining: Three judges chosen for appeal at Supreme Court of Indonesia ]]> http://www.proactiveinvestors.co.uk/companies/news/31966/churchill-mining-three-judges-chosen-for-appeal-at-supreme-court-of-indonesia-38119.html Churchill Mining (LON:CHL) updated investors this afternoon on its appeal concerning the disputed licences that make up the East Kutai coal project.

In a statement, the company said that the head of the state administrative chamber of the Supreme Court of Indonesia had chosen three judges to hear the case.

The appeal was originally launched to try and overturn the decision by the Administrative Tribunal in Samarinda, East Kalimantan, concerning the revocation of the four mining licenses that comprise the East Kutai coal project, in which Churchill has a 75 percent stake.

The East Kutai project is a huge resource with a JORC compliant estimate of 2.7 billion tonnes of coal and a pre-tax net present value of US$1.8 billion.

Churchill acquired the licences in 2007 through an acquisition of a 75 per cent stake in Indonesian group Ridlatama after the previous owner Nusantra failed to extend the licences in 2006 and 2007.

As at 2.30 pm, Churchill shares were up 8.27 per cent, to trade at 18 pence each.

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Mon, 23 Jan 2012 14:35:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/31966/churchill-mining-three-judges-chosen-for-appeal-at-supreme-court-of-indonesia-38119.html
<![CDATA[News - Churchill Mining provides update on dispute with Ridlatama Group members ]]> http://www.proactiveinvestors.co.uk/companies/news/31126/churchill-mining-provides-update-on-dispute-with-ridlatama-group-members--37211.html Churchill Mining (LON:CHL) provided investors today with an update on its dispute with members of the Ridlatama Group.

The dispute relates to alleged breaches of the 2008 investors agreements.

The agreements are between Churchill's subsidiary, PT Indonesia Coal Development (ICD), and members of the Ridlatama Group.

Churchill's subsidiary, PT Indonesia Coal Development ICD, has lodged a claim against Mr Andreas Rinaldi in Indonesia and began arbitration proceedings in Singapore against other members of the Ridlatama Group for breaches of the investor's agreements.

As reported last month, ICD has also received certain letters from Ridlatama Group companies by which they purported to terminate the 2007 Investors Agreement with ICD.

Today, Churchill said: "Further to the above arbitration proceedings, ICD has now been served with a counter claim filed on behalf of the Ridlatama Group.

"The counterclaim seeks an order that ICD's 75 per cent interests in PT Ridlatama Tambang Mineral and PT Trade Powerdino be declared null and void."

The company said that the claim was essentially based on the same matters alleged in the letters and reported on November 11 this year - namely alleged failure to make certain payments by ICD.

Churchill said in today's statement: "ICD considers the Ridlatama counter claim frivolous and categorically denies the allegations made. All the relevant payments were made, and ICD continues to believe the claims to be baseless.

"ICD has referred the new claims to its solicitors in Indonesia and believes these claims have no commercial or legal merit and will continue to take whatever action it deems necessary to fully protect its legal rights in this matter."

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Wed, 21 Dec 2011 14:41:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/31126/churchill-mining-provides-update-on-dispute-with-ridlatama-group-members--37211.html
<![CDATA[News - Churchill Mining asks Indonesian government to intervene over East Kutai ]]> http://www.proactiveinvestors.co.uk/companies/news/30476/churchill-mining-asks-indonesian-government-to-intervene-over-east-kutai-36426.html Churchill Mining (LON:CHL) has asked the Indonesian government to intervene in the dispute over the ownership of the East Kutai coal prospect or else it will seek international arbitration.

In a letter to the government, Churchill claims it has been subject to unjust and unlawful actions by a number of parties including the East Kutai Regency and other Indonesian Government ministries.

“Various Indonesian parties, both government and private, seeking to expropriate its legitimate rights to develop the East Kutai coal deposit are in direct breach of both Indonesia's investment laws and Indonesia's obligations under a number of international investment treaties,” it said.

Churchill wants cooperation from senior government officials to help solve the dispute, but if “amicable resolution” cannot be achieved the firm said it will initiate international arbitration against Indonesia.

The East Kutai project is a huge resource with a JORC compliant estimate of 2.7 billion tonnes of coal and a pre-tax net present value of US$1.8 billion.

Churchill acquired the licences in 2007 through an acquisition of a 75% stake in Indonesian group Ridlatama after the previous owner Nusantra failed to extend the licences in 2006 and 2007.

Churchill subsequently discovered the coal reserves in 2008, after which the East Kutai Regency granted an extension to Nusantra’s previous licences.

In March, a tribunal ruled that Churchill and Ridlatama no longer owned the East Kutai project. 

Churchill filed an appeal against this judgement in Indonesia’s Supreme Court in September. 

 

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Fri, 02 Dec 2011 07:55:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/30476/churchill-mining-asks-indonesian-government-to-intervene-over-east-kutai-36426.html
<![CDATA[News - Churchill Mining updates on legal dispute with Ridlatama Group members ]]> http://www.proactiveinvestors.co.uk/companies/news/29703/churchill-mining-updates-on-legal-dispute-with-ridlatama-group-members--35515.html Churchill Mining (LON:CHL) this afternoon gave investors an update on its dispute with members of the Ridlatama Group.

The dispute relates to alledged breaches of the 2008 investors agreements, it said. 

The agreements are between Churchill's subsidiary, PT Indonesia Coal Development (ICD), and members of the Ridlatama Group.

Churchill said that ICD has received two letters from Ridlatama Group companies, PT Investmine Nusa Persada (INP) and PT Investama Resources (IR), which claim that ICD failed to make initial purchase payments. 

As a result INP and IR were seeking to unilaterally terminate the Investors Agreement with ICD, it added.

However Churchill said that ICD categorically denies the allegations made and says that all payments due for the purchase of its interest in these companies have been made in full, pursuant to the terms of the Investors Agreement. 

“ICD has also referred the two letters received from INP and IR to its solicitors in Indonesia and Singapore and received advice that the INP and IR letters have no legal merit and are ineffective,” Churchill said. 

“Accordingly ICD will take whatever action it deems necessary to fully protect its legal rights in this matter.”

Churchill explained that the IR license holds approximately 6.8 per cent of the JORC resource within the East Kutai coal project and no resources have to date been identified on the INP license.

Additionally the company said that it is continuing with the unlawful act claims against Mr Rinaldi in Indonesia in addition to arbitration proceedings in Singapore against other members of the Ridlatama Group for breaches of the investors agreements.

 

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Fri, 11 Nov 2011 15:01:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/29703/churchill-mining-updates-on-legal-dispute-with-ridlatama-group-members--35515.html
<![CDATA[News - Churchill Mining managing costs well as legal fight continues, says Northland ]]> http://www.proactiveinvestors.co.uk/companies/news/29186/churchill-mining-managing-legal-costs-well-as-it-continues-legal-fight-in-indonesia-says-northland-capital-34876.html Churchill Mining (LON:CHL) is managing its legal costs well and it is well capitalised to continue pressing its legal case in Indonesia, according to Northland Capital analyst Andrew McGeary.

In yesterday’s financial results, for the twelve months ended June 30, the group revealed that it has now made a full write down of the stalled East Kutai coal project.

Chairman David Quinlivan expressed the group’s surprise at the negative ruling from the regional authorities, at a tribunal in March, which has brought the development of the world class East Kutai coal project (EKCP) to a standstill.

The regional tribunal Churchill sought to overturn a move by a local authority to revoke the licences which host the East Kutai project. The company believes the negative ruling was fatally flawed, because “it did not properly address (and in some cases did not address at all) a number of key issues raised during the hearing”.

A subsequent appeal to the Administrative High Court in Jakarta was dismissed. Churchill is now pursuing an appeal to the Indonesian Supreme Court, and it says it will continue to pursue all legal avenues available.

In today’s results Quinlivan told investors that Churchill will “continue to vigorously pursue its claim for the full reinstatement of its rights in relation to the EKCP”.

“If the company does not receive a satisfactory outcome it may ultimately pursue further claims via the international courts under bilateral investment treaties,” McGeary said in a note to clients.

“(Churchill) continues to lobby at high levels backed by its new major Indonesian shareholders and board members, Mr Rachmat Gobel and Ms Fara Luwia.”

But according to McGeary the key takeaway fact from yesterday’s results is the fact that Churchill still has a US$18 million fighting fund in the bank. 

“Going forward the company is well capitalised to continue pressing its legal case,” he added.

“At present cash burn is predominantly of a legal nature but the company has managed these costs well, utilising its high level contacts and legal teams cost effectively.”

The analyst maintains a cautious view on the stock because of the ‘very uncertain’ legal backdrop in Indonesia. 

“While we point to strong cash backing and significant inherent value of the underlying assets if title can be effectively upheld, we maintain our caution given the uncertain outcome and timeline of legal proceedings underway,” McGeary surmised.

 

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Thu, 27 Oct 2011 12:49:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/29186/churchill-mining-managing-legal-costs-well-as-it-continues-legal-fight-in-indonesia-says-northland-capital-34876.html
<![CDATA[News - Churchill Mining’s Quinlivan highlights ‘serious questions’ over foreign investment into Indonesia following legal problems ]]> http://www.proactiveinvestors.co.uk/companies/news/29145/churchill-minings-quinlivan-highlights-serious-questions-over-foreign-investment-into-indonesia-following-legal-problems-34833.html

Churchill Mining (LON:CHL) chairman David Quinlivan today said that the legal problems the firm has encountered has brought the ability of foreign companies to invest in long-term, high value Indonesian project’s into ‘serious question’.

In today’s full year results, for the twelve months ended June 2011, the chairman expressed the group’s surprise at the negative ruling from the regional authorities, at a tribunal in March, which has brought the development of the world class East Kutai coal project (EKCP) to a standstill.

The regional tribunal Churchill sought to overturn a move by a local authority to revoke the licences which host the East Kutai project. The company believes the negative ruling was fatally flawed, because “it did not properly address (and in some cases did not address at all) a number of key issues raised during the hearing”.

A subsequent appeal to the Administrative High Court in Jakarta was dismissed. Churchill is now pursuing an appeal to the Indonesian Supreme Court, and it says it will continue to pursue all legal avenues available.

In today’s results Quinlivan told investors that Churchill will “continue to vigorously pursue its claim for the full reinstatement of its rights in relation to the EKCP”.

Churchill revealed that it has now made impairments totaling US$75 million in relation to the stalled project.

It explained that the full group carrying amount of the East Kutai Coal project has been written down to the tune of US$27.89 million, as at 30 June 2011, and it has also impaired its subsidiary investment and intercompany receivables of US$47.12 million. 

Meanwhile Churchill said it remains well funded, with US$18.1 million in bank, to pursue the legal appeal process and continue its strategy to develop value with the East Kutai project.

“In summary the company remains committed to protecting its interest in the EKCP and seeking an appropriate remedy in relation to the EKCP license for its shareholders,” Quinlivan said in today’s results statement.

“On behalf of the board I would like to thank you, our Shareholders, for your continued support and can assure you the directors will continue to work diligently in the period ahead to reclaim the value inherently owed to Churchill.”

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Wed, 26 Oct 2011 16:13:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/29145/churchill-minings-quinlivan-highlights-serious-questions-over-foreign-investment-into-indonesia-following-legal-problems-34833.html
<![CDATA[News - Churchill Mining Interview Transcript with David Quinlivan, Executive Chairman ]]> http://www.proactiveinvestors.co.uk/companies/news/28295/churchill-mining-interview-transcript-with-david-quinlivan-executive-chairman-33809.html

 

START AUDIO

 

Harry Norman: Hallo. This is Harry Norman for Proactive Investors and welcome to another Proactive audio interview. 

Today is the 27th of September 2011 and I'm talking with David Quinlivan, Executive Chairman of Churchill Mining, listed on the AIM market, mining sector; stock ticker CHL; share price 16.25 pence; market cap 19.65 million pounds sterling; web address churchillmining.com. 

David thank you very much for joining us for this interview.

David Quinlivan: My pleasure Harry.

Harry Norman: Could you provide a summary of the results of the appeal to the Administrative High Court in Jakarta and was there any new information considered to support Churchill’s case?

David Quinlivan: Unfortunately the High Court affirmed the decision of the Administrative Tribunal in its entirety without providing any detailed reasons or basis for doing so. 

The High Court didn’t give its reasoning nor did it deal with the new points raised in the appeal that were not previously raised. Churchill was looking for the High Court to give its own grounds of reasoning instead of simply adopting the lower court’s decision.

Harry Norman: Who does the Administrative High Court believe owns the East Kutai Coal Project David?

David Quinlivan: Harry it was not the role of the High Court to rule on who owns the East Kutai Coal Project. 

The appeal to the High Court in Jakarta was launched to seek to overturn the decision by the Administrative Tribunal in Samarinda, East Kalimantan, in relation to the relocation of the four mining licences that comprise the East Kutai Coal Project. This is the project that Churchill has a 75% interest in. 

Both Nusantara and Churchill contend that they have licences over the East Kutai Coal Project area. There is as yet no clear legal process to resolve directly the priority between these licences. Churchill continues to believe that its claim is valid and to pursue all avenues to demonstrate this.

Harry Norman: Could you provide an update on the current appeal to the Supreme Court of Indonesia?

David Quinlivan: The company filed its notice of appeal for all four cases on the 15th of September 2011 and yesterday lodged the memorandum of appeal to the Supreme Court of Indonesia. 

The company strongly objects to the original ruling of the Administrative Tribunal in Samarinda and remains committed to protecting its interests in the East Kutai Coal Project and seeking an appropriate remedy for its shareholders.

Harry Norman: The Indonesian Supreme Court reviews all relevant information available to it and has a series of prior cases where it overruled High Court decisions. Do you feel that there is a case for Churchill in this instance?

David Quinlivan: There are three grounds for an appeal to the Supreme Court and these are that the judges at the lower courts have 1) not had the authority to hear the case, or the case exceeds their authority, 2) misapplied or violated the prevailing laws, or 3) failed to meet the requirements contained in the prevailing laws which provide for an annulment of such failure. 

The company’s position in the first place is that the Bupati has misapplied the Minerba Law and good corporate governance. 

This is also a ground for the current appeal. The Samarinda Administrative Court and the Jakarta High Administrative Court have misapplied the same law in rendering their decisions. 

While it’s difficult to anticipate the Supreme Court’s decision we believe Churchill has a credible case to submit to the Supreme Court. 

Harry Norman: How confident are you that the company will be successful in the Supreme Court and do you have an idea on the likely timeframe for a decision?

David Quinlivan: Harry the company strongly disagrees with the original Administrative Tribunal decision and has sought and followed legal advice of international and Indonesian counsel in relation to protecting its interest in the East Kutai Coal Project. 

While it’s difficult to anticipate the Supreme Court’s decision following its assessment of the facts, Churchill maintains its argument that the [Bupati] has misapplied the Minerba Law and good corporate governance in revoking the licences and we’re hopeful that the Supreme Court will agree with Churchill’s position. 

At this point we don’t have any indication on the likely timeframe but will keep shareholders advised as appropriate.

Harry Norman: For the appeal do you intend to follow the same strategy for the Supreme High Court as you did for the Administrative High Court? And if yes do you think the outcome will be different and if so why?

David Quinlivan: The strategy is essentially the same. That is we will be rebutting all decisions of the Samarinda Administrative Court and the Jakarta High Court. 

It’s difficult to predict the outcome. However since the judges at the Supreme Court are generally more senior and have more experience than the judges at the lower court we’re hopeful that they will come to a different conclusion than the lower courts. 

Harry Norman: Is there a successful precedent for your case?

David Quinlivan: Harry we’re not aware of any precedents that are similar to our case from a mining perspective. However there is precedent for plaintiffs who’ve won at the Supreme Court despite the fact that they’ve lost in the lower courts.

Harry Norman: Who are Nusantara and can they now legally take possession of and develop the East Kutai Coal Project David?

David Quinlivan: Harry we understand Nusantara is an Indonesian group that held exploration KPs over similar areas to the East Kutai Coal Project and that these Nusantara licences had expired prior to the granting of the licences to Ridlatama. These are the licences that Churchill has a 75% interest in. 

More recently the [Bupati] issued exploration IUPs to Nusantara which are valid for two years with one year granted for exploration phase and one year granted for construction phase. 

There appears however to be a period of over two years during which the Nusantara Group does not appear to have had any valid licences around the East Kutai Coal Project area. 

It appears that Nusantara was granted some type of extension to the original licence in 2008; two years after Nusantara’s original licence had expired. 

Churchill believes that its licences relating to the East Kutai Coal Project take priority over Nusantara and the extension granted to Nusantara in 2008 should not have been issued. Churchill continues to consider appropriate avenues to address this point. 

Irrespective of this the company still has a presence at the East Kutai Coal Project site and regular involvement with the local community.

Harry Norman: If the appeal to the Supreme Court is unsuccessful, what’s next? Is there any possibility of claims using a bilateral international treaty?

David Quinlivan: Should the company be unsuccessful the company would look to be seeking a judicial review of the Supreme Court decision. 

The company would also review its options in relation to international arbitration and where necessary instruct international counsel to conduct a thorough and detailed review of the company’s investments in Indonesia to determine if it’s a qualifying investment under the relevant bilateral investment treaty.

Harry Norman: On the more important note of restoration of licences, is there still some possibility that this would – or could – be settled out of court? If so, is this still the case?

David Quinlivan: Harry at this point there’s no progress on any out of court settlement but we’ll certainly keep shareholders informed if there is any such development. 

Harry Norman: Are Churchill’s new Indonesian shareholders assisting with the legal processes and with any processes outside the courtroom David?

David Quinlivan: Harry our new Indonesian shareholders and Churchill board members, Rachmat Gobel and Fara Luwia, have been assisting the legal process and advising various levels of government in relation to the issues that Churchill faces. They continue to be active in supporting the work towards a favourable outcome for Churchill in the East Kutai Coal Project. 

Harry Norman: Could you provide more information in relation to the legal dispute with the Ridlatama Group? What have they allegedly done wrong?

David Quinlivan: The dispute relates to alleged breaches of the investors’ agreements entered into between Churchill’s subsidiary PT Indonesia Coal Development and members of the Ridlatama Group. 

Churchill believes that the Ridlatama Group has breached various provisions of the investors’ agreements including warranties in relation to the East Kutai Coal Project not being the subject of any third party claims. 

Churchill will pursue legal action in both Indonesia and Singapore against the Ridlatama Group, its shareholders and its principals, in accordance with the dispute resolution provisions contained in the investors’ agreements. 

While Churchill’s claims against Ridlatama relate in part to information that emerged in the Administrative Tribunal hearing earlier this year, the claims do not prejudice the appeal of the Administrative Tribunal decision that’s currently in progress. 

Harry Norman: Have all relationships now broken down with the Ridlatama Group completely?

David Quinlivan: Harry Churchill and Ridlatama have both rejected the conclusions of the Administrative Tribunal and continue to work together in relation to the current appeal to the Supreme Court of Indonesia.

Harry Norman: If Churchill Mining is successful in its action with the Ridlatama Group what outcome will actually be achieved and have you any idea how long this may take?

David Quinlivan: Churchill has sought to recover monetary compensation against the Ridlatama Group. If successful, Churchill would be able to enforce any award or judgment for monetary compensation against the various members of the Ridlatama Group. 

Proceedings before Indonesian courts and arbitral tribunals in Singapore may take up to one year to conclude and for decisions to be obtained.

Harry Norman: What is the approximate cash burn on the legal cost and what is Churchill Mining’s current cash position?

David Quinlivan: Harry the company has incurred legal expenses of approximately 1.4 million US Dollars for the period from January to June 2011 in relation to the Administrative Tribunal action and subsequent appeals. 

The company remains well funded with 19.7 million US Dollars cash on hand as at 19th September 2011. 

Harry Norman: Could you advise on what is happening with the project and with securing land between the proposed mine and the port? Are there any current activities at site or is everything on hold David?

David Quinlivan: Harry we continue to look at the various options in relation to securing land between the proposed mine and the port but there’s been no substantive progress on this. 

The company still has a presence at the East Kutai Coal Project site and regular involvement with the local community but there are currently minimal operational activities at the East Kutai Coal Project site.

Harry Norman: Can you explain to shareholders why options at 50p were awarded to the directors and management of Churchill?

David Quinlivan: Harry the issue of incentive options to directors and management has always been and will continue to be part of our normal remuneration policy. 

The directors have included a reasonable premium over the prevailing share price and the level of options issued as a percentage of shares on issue remain well within institutional and investor guidelines.

Harry Norman: While the legal proceedings continue is Churchill mining evaluated any other projects or assets David?

David Quinlivan: Harry the company remains open to considering other projects or assets but has not conducted any recent evaluation with management’s time being currently focused on resolving the issues with the East Kutai Coal Project.

Harry Norman: Remember Proactive Investors is not an investment advice service. Make sure you register at proactiveinvestors.co.uk for our weekly newsletter which will keep you informed about our articles, interviews, and events. Thank you for listening. 

END AUDIO

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Fri, 30 Sep 2011 09:56:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/28295/churchill-mining-interview-transcript-with-david-quinlivan-executive-chairman-33809.html
<![CDATA[News - Churchill Mining files Memoranda of Appeal to Supreme Court of Indonesia ]]> http://www.proactiveinvestors.co.uk/companies/news/28096/churchill-mining-files-memoranda-of-appeal-to-supreme-court-of-indonesia-33567.html Churchill Mining (LON:CHL) announced today that it has filed its Memoranda of Appeal to the Supreme Court of Indonesia regarding the disputed licences that make up the East Kutai coal project.

It comes after its appeal in relation to the four licences was dismissed by the Administrative High Court of Jakarta.

On August 26 the firm told investors how it was waiting to receive official paperwork, from the initial appeal, at the regional court (the Samarinda Adminstrative court) before it could file its notice of appeal.

These written judgements were subsequently received by the firm on September 9 and on September 15, the company reported it had filed its notice of appeal to the Supreme Court and that its solicitors had begun preparing the Memorandum of appeal, to be lodged within the required 14 days.

The appeal was originally launched to try and overturn the decision by the Administrative Tribunal in Samarinda, East Kalimantan, concerning the revocation of the four mining licenses that comprise the East Kutai coal project, in which Churchill has a 75 percent stake.

Churchill said today that its solicitors have begun preparing the memorandum of appeal to the Supreme Court of Indonesia which will be lodged within the required 14 days.

"As advised previously the company strongly objects to the original ruling of the Administrative tribunal in Samarinda and remains committed to protecting its interest in the East Kutai Coal Project and seeking an appropriate remedy for its shareholders," it said.

It added that it would provide further updates when available.

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Mon, 26 Sep 2011 12:25:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/28096/churchill-mining-files-memoranda-of-appeal-to-supreme-court-of-indonesia-33567.html
<![CDATA[News - Churchill Mining files notice of appeal to Supreme Court of Indonesia ]]> http://www.proactiveinvestors.co.uk/companies/news/27767/churchill-mining-files-notice-of-appeal-to-supreme-court-of-indonesia-33172.html Churchill Mining (LON:CHL) says it has today filed its notice of appeal to the Supreme Court of Indonesia regarding the disputed licences that make up the East Kutai coal project.

It comes after its appeal in relation to the four licences was dismissed by the Administrative High Court of Jakarta.

On August 26 the firm told investors how it was waiting to receive official paperwork, from the initial appeal, at the regional court (the Samarinda Adminstrative court) before it could file its notice of appeal.

These written judgements were subsequently received by the firm last week - on September 9.

The appeal was originally launched to try and overturn the decision by the Administrative Tribunal in Samarinda, East Kalimantan, concerning the revocation of the four mining licenses that comprise the East Kutai coal project, in which Churchill has a 75 percent stake.

Churchill said today that its solicitors have begun preparing the memorandum of appeal to the Supreme Court of Indonesia which will be lodged within the required 14 days.

"As advised previously the company strongly objects to the original ruling of the Administrative tribunal in Samarinda and remains committed to protecting its interest in the East Kutai Coal Project and seeking an appropriate remedy for its shareholders," it said.

It added that it would provide further updates when available.

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Thu, 15 Sep 2011 11:49:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/27767/churchill-mining-files-notice-of-appeal-to-supreme-court-of-indonesia-33172.html
<![CDATA[News - Churchill Mining shares rise as investors digest legal update ]]> http://www.proactiveinvestors.co.uk/companies/news/27579/churchill-mining-shares-rise-as-investors-digest-legal-update-32942.html Churchill Mining (LON:CHL) shares advanced 10 per cent today as investors digested the latest update on the group’s legal dispute in Indonesia.


The group’s primary asset is its 75 per cent stake in the ‘world class’ East Kutai coal mine development project in Indonesia’s Kalimantan region.

The future of the project, which hosts 2.73 billion tonnes of coal resources, is in uncertain because local authorities say that Churchill do not have the right to develop the project, after the East Kutai Regent requested that the firm’s licences are cancelled.

The planned East Kutai mine would have a net asset value of around US$1.8 billion, however at the current share price Churchill’s market value is just under £25 million. 

After two failed appeals in Indonesian courts - first in a regional tribunal and then in the High Court of Jakarta – Churchill is now planning an appeal to the Indonesian Supreme Court.

Today the group loaded an English translation of a report relating to the High Court Decision onto its website. The report spiked interest among investors and the share price gained 2p a share, over 10 per cent, to trade at 21p.

Separately in a note to clients Andrew McGeary, analyst at Churchill’s house broker Northland Securities, maintained a cautious stance on the stock but pointed out the stock’s potential for a rebound.

“The £23m market cap (prior to today's rise) reflects a modest £9.6 million premium to cash at £13.4 million suggesting there is potential for a strong rebound if the company is able to alter the verdict at the Supreme Court, or if some sort of compromise can be reached on the assets.”

 

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Fri, 09 Sep 2011 14:42:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/27579/churchill-mining-shares-rise-as-investors-digest-legal-update-32942.html
<![CDATA[News - Churchill Mining to file notice of appeal to Supreme Court of Indonesia in September ]]> http://www.proactiveinvestors.co.uk/companies/news/27167/churchill-mining-to-file-notice-of-appeal-to-supreme-court-of-indonesia-in-september-32424.html Churchill Mining (LON:CHL) will have to wait until September to file its notice of appeal to the Supreme Court of Indonesia regarding the four licences of the East Kutai Coal Project, it said today.

This afternoon it told investors that it is currently waiting to receive official paperwork, from the initial appeal, at the regional court (the Samarinda Adminstrative court).

Churchill says it has not yet received the official notification of the negative decisions relating to the licences - which later prompted it to take the case to appeal at the Administrative High Court in Jakarta.

Earlier this month, the firm revealed how its appeal in Jakarta in relation to the four licences had been dismissed.

Today, the company said that because of Indonesian national holidays next week, Churchill expects that the Samarinda Administrative Court will provide the official notices during the week beginning September 5.

The appeal was originally launched to try and overturn the decision by the Administrative Tribunal in Samarinda, East Kalimantan, concerning the revocation of the four mining licenses that comprise the East Kutai coal project.

Previously the East Kutai Regent (Bupati) - an authority that governs the East Kutai administrative region of Indonesia's East Kalimantan Province - had purported to have cancelled the four mining licenses. Churchill had referred the matter to the tribunal in Samarinda

Churchill Mining said today it strongly objects to the original ruling of the Administrative tribunal in Samarinda and is committed to protecting its interest in the project, in which it has  a 75 percent stake.

Earlier this month, the firm said the Jakarta appeal had dismissed the case in relation to the PT Investama Resources and PT Investmine Nusa Persada licences.

It was also told that the appeal for the other two - the PT Ridlatama Tambang Mineral and PT Ridlatama Trade Powerindo had been dismissed but it had not received the formal ruling.

In today's statement Churchill said its solicitors have been provided with a copy of the negative appeal decisions for the PT Ridlatama Tambang Mineral and PT Ridlatama Trade Powerindo licences that make up the balance of the East Kutai coal project.

The firm added today that it will provide further updates when they are available.

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Fri, 26 Aug 2011 14:12:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/27167/churchill-mining-to-file-notice-of-appeal-to-supreme-court-of-indonesia-in-september-32424.html
<![CDATA[News - Churchill Mining reveals negative result in appeal to Jakarta high court ]]> http://www.proactiveinvestors.co.uk/companies/news/26934/churchill-mining-reveals-negative-result-in-appeal-to-jakarta-high-court-32154.html Churchill Mining (LON:CHL) announced that an appeal in relation to the revocation of two of four licenses covering its East Kutai coal project has been dismissed by the Administrative High Court in Jakarta. The company now plans to file a notice of appeal to the Supreme Court of Indonesia.

The dismissal of the appeal is in relation to the PT Investama Resources and PT Investmine Nusa Persada licenses.

Churchill says it has also been informed that the appeal on the balance of the licenses for PT Ridlatama Tambang Mineral and PT Ridlatama Trade Powerindo, which cover the rest of the East Kutai coal project, has also been dismissed. However, it has not yet received the formal delivery of that ruling.

A further announcement will be made by the company as soon as such rulings are received.

The appeal by Churchill was launched to overturn the decision by the Administrative Tribunal in Samarinda, East Kalimantan in relation to the revocation of the four mining licenses that comprise the East Kutai coal project, in which Churchill has a 75% interest.

The Administrative High Court in Jakarta held that it agreed wholly with the legal considerations and findings of the Administrative Tribunal in Samarinda and affirmed the latter’s decision.  As yet no reasons for its decision have been provided by the High Court, says Churchill.

The company now intends to file a notice of appeal to the Supreme Court of Indonesia next week, which will be well within the 14-day period available to it for actioning such a move. It will update the market with further developments.

Churchill Mining's chairman, David Quinlivan, says: "We are disappointed in the appeal decision and process.  Despite this ruling, we are determined to protect our rights as a foreign investor within Indonesia and remain fully committed to protecting our interest in the East Kutai Coal Project."

The company says it its current cash position stands at US$20.6 million.

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Fri, 19 Aug 2011 11:18:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/26934/churchill-mining-reveals-negative-result-in-appeal-to-jakarta-high-court-32154.html
<![CDATA[News - Churchill Mining paves way for legal action against Indonesian partner Ridlatama ]]> http://www.proactiveinvestors.co.uk/companies/news/25262/churchill-mining-paves-way-for-legal-action-against-indonesian-partner-ridlatama-30174.html

Churchill Mining (LON:CHL) told investors that it has delivered a ‘notice of dispute’ to its minority partner, the Ridlatama group, and several related individuals.

It said that the dispute relates to alleged breaches of agreements between Churchill's subsidiary, PT Indonesia Coal Development, and members of the Ridlatama Group.

“Churchill believes that the Ridlatama Group has breached various provisions of the investors agreements.  Ridlatama now has the opportunity to resolve the dispute within 30 days,” the company said.

“If there is no resolution within 30 days, Churchill will pursue legal action in Singapore against the Ridlatama Group, its shareholders and its principals in accordance with the dispute resolution provisions contained in the investors agreements.”

The AIM-listed firm owns a world class coal mine development, the East Kutai project, but it has stalled in recent months due to a legal dispute with local authorities – who tried to cancel the four licenses that host the project. 

In March a regional tribunal rejected Churchill’s attempt to have the cancellations officially expunged from the record.  

The following month Churchill told investors that Ridlatama received letters of rejection, for applications for two of the four licences, back in 2010 however Churchill had not been made aware of this prior to the tribunal.

An appeal will be heard by the Administrative High Court in Jakarta.

This morning Churchill said that the claims against Ridlatama, which relate in part to information that emerged in the Administrative Tribunal hearing earlier this year, do not prejudice the appeal.  

“Churchill and Ridlatama have both rejected the conclusions of the administrative tribunal,” the company reiterated.

The group recently brought on-board two influential Indonesian businessmen, Rachmat Gobel and Fara Luwiam, through a share subscription. The two new investors have also taken seats on the board. 

The stock purchase was viewed as a significant endorsement of the company and the potentially world-class East Kutai coal project. 

In June chairman David Quinlivan said: “Although Churchill is already well funded, the constructive injection of capital, and the associated premium paid, demonstrates their support for the project.  In addition, we are excited that Mr. Radke is joining the board and bringing to Churchill the depth and breadth of his corporate, legal and market expertise."

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Mon, 04 Jul 2011 08:27:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/25262/churchill-mining-paves-way-for-legal-action-against-indonesian-partner-ridlatama-30174.html
<![CDATA[News - UPDATE: Churchill Mining appoints new Indonesian investors to board ]]> http://www.proactiveinvestors.co.uk/companies/news/24305/update-churchill-mining-appoints-new-indonesian-investors-to-board-29030.html

                 ------------------Adds share price and broker commentary----------------

Churchill Mining (LON:CHL) told investors that its new Indonesian investors have been appointed to the board of directors.

Between them the two Indonesian executives, Rachmat Gobel and Fara Luwia, have bought just over 19 million new shares in the company. 

They were purchased at 40 pence each – a 60 percent premium at the time of the agreement – and the deal means the pair own around 16 per cent of Churchill.

The stock purchase is viewed as a significant endorsement of the company and the potentially world-class East Kutai coal project – which has become entangled in legal problems.

"We remain delighted to gain the reach and experience of Mr. Gobel and Ms. Luwia as they join us, both as investors and board members,” chairman David Quinlivan said.

“Although Churchill is already well funded, the constructive injection of capital, and the associated premium paid, demonstrates their support for the project.  In addition, we are excited that Mr. Radke is joining the board and bringing to Churchill the depth and breadth of his corporate, legal and market expertise."

The placing of new shares with the two new investors raised £7.7 million, which will be put towards the development of the East Kutai project.

The cash will see the company through a tricky period of its development as it fights a legal rearguard over its East Kutai coal project in the East Kalimantan region of the country. Indeed analysts believe the two influential business people Churchill has brought on board could provide some much needed local expertise. 

Rachmat Gobel controls a well-known and highly respected Indonesian company, called PT Gobel International, which has an impressive track record of partnering international companies, Churchill said.

Gobel a director for several companies and he is also vice chairman of the Advisory Board of the Indonesian Chamber of Commerce and Industry, the vice chairman of the Employers' Association of Indonesia.

Luwia is the president of PT Goldkey Property, which handles large commercial property and land deals in Indonesia.  

Churchill also revealed that Pala Investments – one of Churchill's largest shareholders – has appointed Gregory Radke to represent it on Churchill’s board. Radke will be a non-executive director.

The market’s response to today’s update was positive, with the shares rising 2.5 pernce, or just over 5 per cent, to 50 pence. It builds on a rally that has seen the stock almost double in value in the past three months.

“Whilst Churchill had previously established an advisory board, the direct involvement, in a non-executive capacity, of Mr Gobel and Ms Luwia in particular adds more direct local experience,” said Andrew McGeary, an analyst at City broker Northland Securities. 

“This looks to be key in resurrecting confidence and driving the project forward. 

“Given the additional shares, the company looks to have a market cap of around £58 million, which represents a good recovery from its lows of £18 million. 

“While we welcome the move we retain our caution on the shares given the uncertainty surrounding the on-going legal case over the title of the East Kutai assets.”

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Mon, 06 Jun 2011 11:19:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/24305/update-churchill-mining-appoints-new-indonesian-investors-to-board-29030.html
<![CDATA[News - Churchill Mining appoints new Indonesian investors to board ]]> http://www.proactiveinvestors.co.uk/companies/news/24284/churchill-mining-appoints-new-indonesian-investors-to-board-29009.html

Churchill Mining (LON:CHL) told investors that its new Indonesian investors have been appointed to the board of directors.

Between them the two Indonesian executives, Mr Rachmat Gobel and Ms Fara Luwia, have subscribed for just over 19 million new shares in the company. The shares were priced at 40 pence each – a 60 percent premium at the time of the agreement – and they represent around 16 percent of the enlarged share capital.

The subscription was viewed as a significant endorsement of the company and the potentially world-class East Kutai coal project – which has become entangled in legal problems.

"We remain delighted to gain the reach and experience of Mr. Gobel and Ms. Luwia as they join us, both as investors and Board Members,” chairman David Quinlivan said.

“Although Churchill is already well funded, the constructive injection of capital, and the associated premium paid, demonstrates their support for the project.  In addition, we are excited that Mr. Radke is joining the board and bringing to Churchill the depth and breadth of his corporate, legal and market expertise."

The placing raised £7.7 million in new capital, which will be put towards the development of the East Kutai project.

The cash will see the company through a tricky period of its development as it fights a legal rearguard over its East Kutai coal project in the East Kalimantan region of the country. Indeed analysts believe the two influential business people Churchill has brought on board could provide some much needed local expertise. 

Rachmat Gobel controls a well-known and highly respected Indonesian company, called PT Gobel International, which has an impressive track record of partnering international companies, Churchill said.

Gobel a director for several companies and he is also vice chairman of the Advisory Board of the Indonesian Chamber of Commerce and Industry, the vice chairman of the Employers' Association of Indonesia.

Luwia is the president of PT Goldkey Property, which handles large commercial property and land deals in Indonesia.  

Churchill also revealed that Pala Investments – one of Churchill's largest shareholders – has appointed Gregory Radke to represent it on Churchill’s board. Radke will be a non-executive director.

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Mon, 06 Jun 2011 07:37:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/24284/churchill-mining-appoints-new-indonesian-investors-to-board-29009.html
<![CDATA[News - Churchill set for US$12.8million boost as it closes placing ]]> http://www.proactiveinvestors.co.uk/companies/news/24189/churchill-set-for-us128million-boost-as-it-closes-placing-28887.html Churchill Mining (LON:CHL) is set for a US$12.8million cash boost after it closed a previously announced share placing to two Indonesian investors.

On May 3 this year, Churchill said that it was bringing on board two Indonesian partners who are subscribing for £7.7 (US$12.7mln) million-worth of shares at premium to the current price.

It has now received the first US$8 million, and the remaining US $4.8 million will come through next week.

Last month, the firm revealed how the new investors were Rachmat Gobel and Fara Luwia, and they are acquiring 19.3 million shares at 40 pence each – a 60 per cent mark-up to 20-day average price of the stock.

The pair will own 16.5 per cent of the enlarged company.

Executive chairman David Quinlivan said today: "We look forward to completing the subscription shortly and are delighted to gain the reach and experience of Mr. Gobel and Ms. Luwia."

The company will issue and allot the placing shares once the balance of funds has been received.

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Wed, 01 Jun 2011 16:11:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/24189/churchill-set-for-us128million-boost-as-it-closes-placing-28887.html
<![CDATA[News - UPDATE: Churchill Mining files legal documents for Jakarta appeal ]]> http://www.proactiveinvestors.co.uk/companies/news/23705/update-churchill-mining-files-legal-documents-for-jakarta-appeal-28302.html UPDATE: Adds comments from broker Northland Securities

Churchill Mining (LON:CHL) has confirmed that its appeal has now been filed to the Administrative High Court in Jakarta.

The group has been caught up in a major legal battle over the future of its flagship East Kutai coal mine development after an attempt by regional authorities to cancel the licenses that host the project.

Previously the East Kutai Regent (Bupati) - an authority that governs the East Kutai administrative region of Indonesia's East Kalimantan Province - had purported to have cancelled the four mining licenses. 

Churchill subsequently referred the matter to administrative tribunal in Samarinda – the capital city of the East Kalimantan province. It was an attempt to have the original cancellations officially expunged from the record because they considered that the Bupati had violated a number of administrative protocols.

In March the Samarinda tribunal ruled against Churchill.

This morning Churchill confirmed that its Indonesian partner Ridlatama has filed Memoranda of Appeal with the Administrative Court in Samarinda and the appeal will be heard by the Administrative High Court in Jakarta.

Churchill said that the Administrative High Court will advise the parties of its decision in due course.

Meanwhile, Churchill said it will continue to monitor the appeal process and it will make announcements to investors as and when it becomes aware of further developments.

The AIM-listed firm’s chances at appeal received a major vote of confidence recently as two new Indonesian partners invested £7.7 million and subscribe for shares in the company.

Analysts believe the two influential business people Churchill has brought on board could provide some much needed local expertise. 

 

Northland Securities analyst Andrew McGeary said that Churchill shares are still trading at good ‘recovery levels’ under the circumstances.

“The company has rallied strongly since its private placement with a local investor raised £7.7m. We welcomed this move which provided a much needed fillip,” McGeary said in a note to clients.

“However, we view the legal process as high risk and therefore maintain caution on the shares which, despite some weakness yesterday, are trading at good recovery levels under the circumstances.”

 

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Tue, 17 May 2011 14:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/23705/update-churchill-mining-files-legal-documents-for-jakarta-appeal-28302.html
<![CDATA[News - Churchill shares soar 40 per cent after new local partners show their faith in the company ]]> http://www.proactiveinvestors.co.uk/companies/news/23308/churchill-shares-soar-40-per-cent-after-new-local-partners-show-their-faith-in-the-company-27821.html

Shares in Churchill Mining (LON:CHL) shot up more than 40 per cent in opening deals after it was revealed that the group is bringing on board two Indonesian partners who are subscribing for £7.7 million-worth of shares.

The cash will see the company through a tricky period of its development as it fights a legal rearguard over its East Kutai coal project in the East Kalimantan region of the country.

Indeed analysts believe the two influential business people Churchill has brought on board could provide some much needed local expertise. 

Earlier the company revealed that Rachmat Gobel and Fara Luwia are acquiring 19.3 million shares at 40 pence each – a 60 per cent premium to the 20-day average price of the stock. The pair will own 16.5 per cent of the enlarged company.

Gobel is the head of Gobel International, which has a partnership with Japan’s Matsushita Corporation and is the local representative of Qatar Telecom, while businesswoman Luwia is currently developing one of the largest rice mills in the country in partnership with a Swiss commodity trader. 

Chairman David Quinlivan said: "Churchill welcomes Mr Gobel and Ms Luwia as both shareholders and strategic partners.  

"They have a significant on-ground presence in Indonesia and Churchill believes that they will provide the local expertise and experience necessary to advance the East Kutai Coal Project through to its production phase in the most expeditious manner possible."

Churchill is currently appealing an attempt by the regional authorities in Indonesia to cancel the licences covering East Kutai, a potentially world class coal mine with a 961 million tonne JORC mining reserve and 2.73 billion tonnes of JORC resources. 

The sheer scale of the project is reflected by the US$1.2 billion direct capital costs to build the mine.

Once operational the proposed open pit would produce 30 million tonnes of high grade thermal coal each year, for an initial 25-year life. It would generate cashflow of US$500 million each year.

Gobel added: "I am looking forward to working with Churchill to advance the East Kutai Coal Project into development.  

“I believe that this project will be a significant contributor to East Kalimantan's economy and bring substantial benefits to the region and Indonesia as a whole."

At 10.50 am the shares were trading up 16.25 pence at 54 pence. 

David Johnson of Broker Matrix told clients this morning: “With the East Kutai Coal Project currently bogged down in the legal process, the placing provides some additional financial fire-power but also some much needed local expertise.” 

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Tue, 03 May 2011 11:03:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/23308/churchill-shares-soar-40-per-cent-after-new-local-partners-show-their-faith-in-the-company-27821.html
<![CDATA[News - Major boost for Churchill Mining as it lands two local partners who buy £7.7 million of shares ]]> http://www.proactiveinvestors.co.uk/companies/news/23291/major-boost-for-churchill-mining-as-it-lands-two-local-partners-who-buy-77-million-of-shares--27803.html Churchill Mining (LON:CHL) confirmed this morning that it is bringing on board two Indonesian partners who are subscribing for £7.7 million-worth of shares at premium to the current price.

The new investors are Rachmat Gobel and Fara Luwia, and they are acquiring 19.3 million shares at 40 pence each – a 60 per cent mark-up to 20-day average price of the stock. The pair will own 16.5 per cent of the enlarged company.

Churchill is currently embroiled in a major legal battle over the future of its East Kutai project in Indonesia, and it will be hoped the acquisition of two influential partners will help in its bid to hold onto the coal mine.

Gobel is the head of  Gobel International, which has partnerships with Japan’s Matsushita Corporation and is the local representative of Qatar Telecom, while businesswoman Luwia is currently developing one of the largest rice mills in the country in partnership with a Swiss commodity trader. 

Chairman David Quinlivan said: "Churchill welcomes Mr Gobel and Ms Luwia as both shareholders and strategic partners.  

"They have a significant on-ground presence in Indonesia and Churchill believes that they will provide the local expertise and experience necessary to advance the East Kutai Coal Project through to its production phase in the most expeditious manner possible."

Gobel added: "I am looking forward to working with Churchill to advance the East Kutai Coal Project into development.  

“I believe that this project will be a significant contributor to East Kalimantan's economy and bring substantial benefits to the region and Indonesia as a whole."

 

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Tue, 03 May 2011 07:28:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/23291/major-boost-for-churchill-mining-as-it-lands-two-local-partners-who-buy-77-million-of-shares--27803.html
<![CDATA[Media files - David Quinlivan, Chairman of Churchill Mining, answers questions submitted by shareholders about the East Kutai Coal Project ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/832/david-quinlivan-chairman-of-churchill-mining-answers-questions-submitted-by-shareholders-about-the-east-kutai-coal-project-729.html Thu, 21 Apr 2011 12:29:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/832/david-quinlivan-chairman-of-churchill-mining-answers-questions-submitted-by-shareholders-about-the-east-kutai-coal-project-729.html <![CDATA[News - Churchill Mining updates on forestry permitting issues relating to East Kutai licence dispute ]]> http://www.proactiveinvestors.co.uk/companies/news/22725/churchill-mining-updates-on-forestry-permitting-issues-relating-to-east-kutai-licence-dispute--27099.html The board of Churchill Mining (LON:CHL) has told investors that it has very recently become aware that forestry permit applications, for two of the four licences that comprise the East Kutai coal project, were rejected in 2010.

It said that last month’s administrative tribunal made reference to the letters, which were dated 31 March 2010 and 21 April 2010. In a statement this afternoon Churchill said that the board was not aware of the existence of such letters prior to the Administrative Tribunal's ruling.

It now has copies of the letters, which state that the applications for forestry-use permits in respect of two of the four EKCP Licences, PT Investmine Nusa Persada and PT Ridlatama Trade Powerindo, have been rejected. 

“The board believed that the applications for forestry-use permits, and the question of whether such permits were in fact necessary, were still being considered by the relevant authorities,” Churchill said. “It now appears that the applications are no longer under consideration.”

The letters cite the alleged overlap between the EKCP Licences and licences held by the Nusantara Group as the reason why the applications cannot be considered and were therefore rejected, Churchill said.  It also reiterated that it rejects any suggestion of overlap, and it expects the issue to be addressed in the forthcoming appeal at the Administrative High Court in Jakarta.

Churchill stressed that these are the two southernmost permits of the EKCP, and don’t host any identified reserves or resources.

It said that the board is investigating whether similar letters exist, in relation to the other two EKCP licences. Meanwhile it continues to liaise with the Ministry of Forestry to ascertain whether forestry-use permits are in fact required. 

“The board is concerned that management did not make it aware of the existence of these rejection letters until very recently,” Churchill said.

David Quinlivan, Churchill’s chairman, is currently conducting a thorough audit of the Jakarta office with the assistance of selected advisers.

Churchill said he is also working with Ridlatama - Churchill’s Indonesian partners - to try to understand fully how this situation has arisen, and to gain assurance that there are no further documents of significance of which the Churchill’s board is not aware of.

Importantly Churchill set out its current position in light of this latest development.

The rejection of the forestry-use permits is unrelated to the separate question of whether the EKCP licences are valid, according to Churchill’s Indonesian associated office of the company's solicitors. It said that a party may retain production licences without a forestry-use permit, although it cannot conduct mining activities under the production licence within a designated forestry area.

Churchill added that it is engaging with the Ministry of Forestry regarding the rejection letters and it will take all steps to resolve the issue, including, if necessary, applying for new forestry-use permits.

As far as Churchill is concerned it said that the apparent rejection of two of the permit applications does not affect current activities at the EKCP, because it has not yet commenced mining activities at the site.

 

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Tue, 05 Apr 2011 15:07:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/22725/churchill-mining-updates-on-forestry-permitting-issues-relating-to-east-kutai-licence-dispute--27099.html
<![CDATA[News - Churchill Mining well funded to appeal tribunal ruling over East Kutai coal project ]]> http://www.proactiveinvestors.co.uk/companies/news/22584/churchill-mining-well-funded-to-appeal-tribunal-ruling-over-east-kutai-coal-project-26918.html Churchill Mining (LON:CHL) said its financial results in the first half were in line with expectations and it was fully funded to appeal judgments from the Samarinda tribunal in Indonesia.

The company’s key asset is the East Kutai coal development project in Indonesia. Churchill is currently in the middle of a dispute, which centers on an attempt by regional authorities to cancel the licenses that host the project.

The Samarinda tribunal gave a verbal ruling, against Churchill, on the 3 March 2011. Since then Churchill has appealed the decision to the Administrative High Court in Jakarta.

During the six months to 31 December 2010, Churchill completed a 30 million tonne (Mt) per annum feasibility study, which confirmed the technical and economical feasibility of the project. The investment evaluation, modelled over an initial 25-year period, indicated a pre-tax net present value of US$1.8 billion and a pre-tax net cashflow in excess of US$500 million per annum over the first 20 years of capacity production with a direct expenditure of US$1.2 billion.

EKCP has a JORC compliant probable in-situ reserve of 961 million tonnes, which forms part of the 2.73 billion tonnes JORC resource, with potential for further expansion.

Churchill’s financial results were in line with expectations. The loss for the half year was US$3 million, or 3.13 pence per share as administrative expenses amounted to US$3.4 million. About US$5.8 million was committed to exploration and evaluation, land acquisition & pre development expenditure at East Kutai.

Churchill currently has US$11.9 million in the bank, which it said makes it well funded to pursue the appeal process and continue its strategy to develop value with the project.

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Thu, 31 Mar 2011 15:58:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/22584/churchill-mining-well-funded-to-appeal-tribunal-ruling-over-east-kutai-coal-project-26918.html
<![CDATA[News - Churchill gives robust rebuttal to tribunal findings regarding East Kutai ]]> http://www.proactiveinvestors.co.uk/companies/news/22480/churchill-gives-robust-rebuttal-to-tribunal-findings-regarding-east-kutai-26802.html Churchill Mining (LON:CHL) shares took another tumble this afternoon as it published the English translation of the written judgments from the Samarinda tribunal.

On the 3 March 2011 the share price dropped about 70 percent, from 90.25 to 27.25 pence each, after it revealed the extent of a legal dispute over the world class East Kutai coal mine development project.

The dispute centres on an attempt by regional authorities to cancel the licenses that host the project. Churchill subsequently referred the matter to the Administrative Tribunal in Samarinda.

This was an attempt to have the original cancellations officially expunged from the record because Churchill considered that the East Kutai Regency (Bupati) had violated a number of administrative protocols.

The Samarinda tribunal gave a verbal ruling, against Churchill, on the 3 March 2011. Since then Churchill has appealed the decision to the Administrative High Court in Jakarta.

On Friday Churchill received the written judgments, in the Bahasa Indonesian language, from the Samarinda tribunal and this afternoon it published the English translation.

Churchill summarised the 90-page document in a stock exchange statement. It said it rejects the tribunal's findings generally, and it summarised its stance on some of the key findings.

The tribunal’s report set out four key findings.

First the (translated) written judgement states that part of the area covered by the EKCP licences is a forestry area, which require a ‘borrow and use’ permit (izin pinjam pakai) before exploration work can be carried out. The tribunal said that Churchill and Ridlatama, its Indonesian partner, carried out exploration work before obtaining a ‘borrow and use’ permit.

In response Churchill said that it does not accept the conclusions regarding a breach of forestry requirements. The company said it does not believe that the licences cover a forestry area however Churchill said that it is now seeking further clarity on the matter from the relevant authorities.

It also said that it does not believe that a ‘borrow and use’ permit was required before the production stage.

Secondly the tribunal states that there were suspected irregularities in respect of the licences, which were upgraded on 9 April 2008, and the licensed area overlapped a licence that was issued later, to the Nusantara Group on 18 February 2010.

In response Churchill told investors that it also rejects any finding of the Tribunal in relation to the allegation of irregularities or forgery by Churchill/Ridlatama, which may have resulted in overlap. The company said that the allegations were subsequently investigated both by the East Kutai Police and an independent state agency, and the agency confirmed that the EKCP Licences were ‘legal and accountable’.  

Furthermore Churchill also challenges the validity of the 18 February 2010 licence referred to in the judgment.

The tribunal also stated that the Forestry Minister had requested the Bupati to stop the activities of Churchill/Ridlatama and investigate allegations of forgery by Churchill/Ridlatama. The Ministry also compelled the partners to obtaining a ‘borrow and use permit’.

It also said that the staff of the East Kutai regency’s Mining and Energy Department recommended the revocation of the EKCP Licences as a sanction for failing to comply with procedures relating to the use of the forests. 

Therefore the Samarinda tribunal decided that the Bupati was within his rights to cancel the licences.

Churchill reiterated that it rejects the conclusions of the Tribunal and its solicitors are reviewing the judgments and appeal preparations are well underway.

“The company will take any and all steps necessary to defend their rights in relation to the EKCP Licences that make up the EKCP. The decision by the Tribunal is not final and binding as a matter of law until after all appeal avenues have been exhausted,” Churchill said.

On AIM Churchill’s shares fell with a sharp knee-jerk immediately after the announcement, falling almost 30 percent to 22 pence a share. Since then they have rebounded somewhat and were last changing hands around the 27.5 pence each, down 11.3 percent.

 

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Tue, 29 Mar 2011 14:53:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/22480/churchill-gives-robust-rebuttal-to-tribunal-findings-regarding-east-kutai-26802.html
<![CDATA[News - Churchill Mining says Mazak to step down as MD to focus on Indonesia appeal ]]> http://www.proactiveinvestors.co.uk/companies/news/22238/churchill-mining-says-mazak-to-step-down-as-md-to-focus-on-indonesia-appeal-26534.html  

Paul Mazak is stepping down as managing director of Churchill Mining  (LON:CHL)  to focus on the company’s Administrative High Court appeal in Indonesia, it was revealed today.

David Quinlivan moves from non-executive to executive chairman and will take day-to-day control of the company.

It has been a turbulent two-and-a-half-weeks for the company which has been fighting a legal rearguard in Indonesia.  

A  regional administrative tribunal  ruled against the company, which has been trying to protect the legal standing of its mining licences for the East Kutai coal project – a 2.73 billion tonne coal resources. 

Churchill has already announced it is appealing the decision.

In a short statement to the stock exchange this afternoon it said: “Churchill wishes to announce the following changes to its board of directors and management structure.

“Mr Paul G Mazak will step down as Managing Director and from the Board to initially focus on assisting Churchill and its Indonesian partners prepare for the upcoming Administrative High Court appeal.

“Mr David Quinlivan, currently non executive chairman of Churchill, will take over the day to day running of the company as executive chairman.”

No further details were given. 

However in a recent interview with Proactive Investors, Quinlivan said: “We have always maintained, and have Indonesian legal advice to the effect, that the EKCP licences remain valid at this point in time.”    

 

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Mon, 21 Mar 2011 13:21:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/22238/churchill-mining-says-mazak-to-step-down-as-md-to-focus-on-indonesia-appeal-26534.html
<![CDATA[Media files - David Quinlivan, Chairman of Churchill Mining, answers questions about the East Kutai Coal Project ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/797/david-quinlivan-chairman-of-churchill-mining-answers-questions-about-the-east-kutai-coal-project-691.html Mon, 14 Mar 2011 08:23:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/797/david-quinlivan-chairman-of-churchill-mining-answers-questions-about-the-east-kutai-coal-project-691.html <![CDATA[News - Churchill chairman says East Kutai licences "remain valid at this point in time" ]]> http://www.proactiveinvestors.co.uk/companies/news/22056/churchill-chairman-says-east-kutai-licences-remain-valid-at-this-point-in-time-26319.html It has been a difficult week for Churchill Mining, which has been caught up in a legal battle in Indonesia. A  regional administrative tribunal  ruled against the company, which has been trying to protect the legal standing of its mining licences for the East Kutai coal project – a 2.73 billion tonne coal resources. Churchill has already announced it is appealing the decision. Below chairman David Quinlivan answers our questions about the litigation. 

David Quinlivan, Chairman of Churchill Mining, answers questions about the East Kutai Coal Project in East Kalimantan in Indonesia, which has a JORC compliant resource of 2.7 billion tonnes of thermal coal, the recent ruling of the State Administrative Tribunal in Samarinda - East Kalimantan, and the company’s response to it.

*The full audio can be listed too at the bottom of this article*

What are the implications of this tribunal?

Our Indonesian legal advice is that the proceedings before the Samarinda Administrative Tribunal do not constitute an action that will immediately affect the substantive rights of the owners of the EKCP Licenses.  We understand that the decision by the Samarinda Administrative Tribunal is not final and binding as a matter of Indonesian law until after all appeal avenues have been exhausted.

Are the licences owned by Churchill / Ridlatama and are they currently valid?

We have always maintained, and have Indonesian legal advice to the effect, that the EKCP Licences remain valid at this point in time.   

Notwithstanding the decision of the Administrative Tribunal, the validity of the EKCP Licences have been confirmed separately on a number of occasions:   by (1) the BPK, an independent state agency acting as an auditing body, (2) the East Kutai police who investigated allegations of forgery in relation to the licences and found there was no case to answer, and (3) during the Administrative Tribunal proceedings themselves when the Minister of Energy and Mineral Resources' Head of Legal and Legislative Affairs gave expert testimony that the Ministry continued to regard the Licences as valid and enforceable. 

No cancellation decree has ever been lodged with the Ministry of Energy and Mineral Resources as is required by administrative protocol.  

Are there other occasions that these licenses have been reviewed?

We do not believe there are any valid grounds for review of the licenses, and that they have been valid throughout.  The above reviews (question 2 above) have supported this conclusion.  

Are these Churchill's sole assets and who were they acquired off/how long ago?

These are the majority of the assets.  These were purchased from Ridlatama Group, our Indonesian partners who retained a 25% stake.  They were acquired in 2007.

Given the problems with licensing at this early stage, if successful in appealing, can Churchill hope to develop the mine into production without recurring problems?

We have always had to meet, and will continue to have to meet, regulatory and compliance challenges, given the region of the world in which we are operating.  However if we are able to be successful on appeal, this will naturally give us a robust basis on which to move forward.

Have mining licences been granted to any other party over these same blocks? 

Not that we are aware of. 

What is the exact status of the licences at this point, have they been cancelled at any time previously?

We are advised that the proceedings before the Samarinda Administrative Tribunal do not constitute an action that will immediately affect the substantive rights of the owners of the EKCP Licenses and the decision by the Samarinda Administrative Tribunal is not final and binding as a matter of law until after all appeal avenues have been exhausted.  We therefore believe the licenses remain valid at the present time.  

In the event of the Appeal failing and the Appeal decision being final, then what would be the status of the licences and would reapplication for new licences be possible?

If the Administrative High Court appeal is unsuccessful, a further appeal can be lodged with the Indonesian Supreme Court. If the Supreme Court appeal is unsuccessful the Company can request a Civil Review of the Supreme Court decision. Further legal recourse may be sought under the jurisdiction of the International Centre for Settlement of Investment Disputes ("ICSID").

It is impossible to speculate about reapplication for new licences at the present time.  

Does Churchill own the land for both the mine and the port?

Churchill owns the land at the port.  The land related to the protect itself is owned by the local community as is normal for this part of the world.

Why weren't Shareholders told of this action by the Regent ahead of fundraising in May 2010?

At that stage we did not believe that there was any credible threat to the licences.  No cancellation or revocation decree had been lodged at that time or since with the Ministry of Energy and Mineral Resources, Central Jakarta.  We were told specifically in May 2010 by the Bupati that no revocation had been made.   

Why was there no mention of the tribunal action at the shareholder, analyst meetings late 2010 and at the AGM?

As stated before, at not stage has the company believe there was any credible threat to the licenses.  The tribunal proceedings were commenced on a narrow basis and were focused on certain procedural matters in order to have any previous cancellations officially expunged from the record to the extent they existed:  they were believed by the company not to exist or to be valid.  The Administrative Court should focus purely on procedural matters and not on substantive matters.  Questions about the validity of the licences should therefore not have arisen in the way they now appear in the judgment.  Our legal advice is that this outcome could not have been predicted at the outset of the case.  

Why were important details regarding the Licences held 'in camera' and withheld from investors?

Ridlatama and Churchill's lawyers requested that the Administrative Tribunal proceedings be held in camera until the results were made public. We received legal advice that this would be in the best interests of the Company, to avoid potential inaccurate press speculation which could have been detrimental to the process. 

Why was further information not released to the market in the RNS of 21 February 2011?

As explained, the Administrative Tribunal decision was not expected by either us or our legal counsel.  Our legal advice is that it was unpredictable.  The judgment is irregular and goes beyond the Courts administrative jurisdiction to rule on substantive matters which it should not have done.  This was entirely unexpected.  

Why were 1.2million shares issued on or around 25 February 2011 and who were they issued to?

An application for 1.2million new ordinary shares of 1 penny each to be admitted to trading on AIM, was made on 25 February 2011, following exercise of options.  The options were held and exercised by a fund and as far as we are aware the fund has retained this shareholding. 

Any shareholding which exceeds 3% must be disclosed to the market in accordance with UK securities regulations.  Also, any share-dealing by Company directors must be disclosed to the market in accordance with UK securities regulations.  It can therefore be inferred from the lack of such disclosure that this matter is unconnected with the directors. 

Is the strategic development process still underway?

The Company continues to examine various proposals despite the current situation, and discussions are ongoing.  We can say nothing further on this at this stage but will keep you informed.  

What is Churchill's current cash at bank?

Churchill's current cash at bank is US$12.2million (as at 10 March 2011) 

Can you explain the tribunal process please and the reasons for it?

Ridlatama and Churchill initiated the Administrative Tribunal in September 2010 in order to have the purported cancellations officially expunged from the record, as they considered that the Bupati had violated a number of administrative protocols.  The company wished to ensure the full valuation of the East Kutai Coal Project is derived from the strategic process.  The review was intended to address certain ongoing irregular actions and misrepresentations by third parties in Indonesia in respect to the mining licences for the East Kutai Coal Project.

Will Churchill be appealing the outcome, if not what will happen to the licences?

The Company has appealed against the decision of the Administrative Tribunal, as was announced to the market on 10 March 2011. This appeal notice was lodged on 9 March 2011 with the Administrative Tribunal in Samarinda, East Kalimantan. 

What is the appeal process?

The appeal will be heard by the Administrative High Court in Jakarta. It may take several months after lodgement of the appeal before the High Court issues its notification to the parties. This notification marks the beginning of the formal appeal process. 

What will happen if an appeal is unsuccessful?

If the Administrative High Court appeal is unsuccessful, a further appeal can be lodged with the Indonesian Supreme Court. If the Supreme Court appeal is unsuccessful the Company can request a Civil Review of the Supreme Court decision. 

Further legal recourse may be sought under the jurisdiction of the International Centre for Settlement of Investment Disputes ("ICSID").

Will the Tribunal documentation be available to all Shareholders and translated in English in an accurate word for word transcript, to avoid any ambiguity in translation?

A full summary of the Administrative Tribunal decision and a notarized English translation of the decisions will be made available to investors through the appropriate channels. 

What are the precise stages of the appeal process?

The appeal, lodged by the Company on 9 March 2011, will be heard by the Administrative High Court in Jakarta.

If the Administrative High Court appeal is unsuccessful, a further appeal can be lodged with the Indonesian Supreme Court.

 If the Supreme Court appeal is unsuccessful the Company can request a Civil Review of the Supreme Court decision. 

Further legal recourse may be sought under the jurisdiction of the International Centre for Settlement of Investment Disputes ("ICSID").

Political decision 

Why did the Regent cancel (or attempt to cancel) the licenses?

We can not speculate as to the motives of reasons of the Bupati. 

Status of other licences held/sought by Churchill

Has Churchill committed any breaches of the mining or forestry laws in Indonesia?

No, and we would refute any such allegations. It is our position that we meet our compliance and regulatory obligations. 

The Company continues to emphasizes that the Company and its partners have never done any mining at the EKCP site.

The communities around the EKCP site have never made such a complaint, a claim which was substantiated by a sworn Ministry of Forestry affidavit from the chief of the local Dayak cultural council (the traditional community's foremost authority on land issues) that affirmed that local land owners have found the EKCP partners to have never performed any illegal activities and to have acted responsibly at all times. This evidence was presented during the Administrative Tribunal proceedings.

 

Are the claims about forestry irregularities why the forestry permit has not been granted?

We have applied for a forestry licence, and the Forestry Ministry is currently reviewing whether or not in fact the company needs such a licence (our mining licences make clear on their face that the land is not in a forestry area).  This consideration is on-going, and we have no new information about this matter.

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Sun, 13 Mar 2011 15:13:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/22056/churchill-chairman-says-east-kutai-licences-remain-valid-at-this-point-in-time-26319.html
<![CDATA[News - Churchill Mining to appeal in Jakarta’s Administrative High Court ]]> http://www.proactiveinvestors.co.uk/companies/news/21999/churchill-mining-to-appeal-in-jakartas-administrative-high-court-26250.html Churchill Mining (LON:CHL) told investors that it has appealed against the decision made by the Administrative Tribunal in Samarinda, relating to the revocation of the four mining licences that comprise the East Kutai Coal Project (EKCP).

Last week the Samarinda tribunal ruled against Churchill.

Previously the East Kutai Regent (Bupati) - an authority that governs the East Kutai administrative region of Indonesia's East Kalimantan Province - had purported to have cancelled the four mining licenses. Churchill had referred the matter to the tribunal in Samarinda.

It was an attempt to have the original cancellations officially expunged from the record because they considered that the Bupati had violated a number of administrative protocols.

On 3 March 2011 Churchill said it strongly disagreed with the decision and it was evaluating options to remedy the situation.

This morning it confirmed that it has now filed an appeal to the Administrative Tribunal in Samarinda, and the appeal will be heard in Jakarta by the Administrative High Court.

Churchill said it may take several months before the Administrative High Court issues its notification to the parties, which will mark the beginning of the formal appeal process.

In the mean time it expects to receive the full written ruling from the Samarinda tribunal – Thursday’s ruling was given verbally – in about two weeks. 

It will then be reviewed, for the purpose of preparing and filing the memorandum of appeal – which will contain the arguments that Churchill will put forward to the high court.

Churchill also confirmed that it currently has US$12.2 million in cash.

Earlier this week the company also reminded investors that it is continuing to talk with prospective partners for the development project (Read More).

 

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Thu, 10 Mar 2011 08:08:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/21999/churchill-mining-to-appeal-in-jakartas-administrative-high-court-26250.html
<![CDATA[News - Churchill Mining ‘not aware of any specific reason’ for share price bounce ]]> http://www.proactiveinvestors.co.uk/companies/news/21956/churchill-mining-not-aware-of-any-specific-reason-for-share-price-bounce-26182.html Churchill Mining (LON:CHL) share price spiked today, rising more than 50 percent to reach an intraday high at 48.25 pence a share.

The bounce saw the stock recoup some of the lost ground from Friday’s session, in which it slumped from 90.25 to as low as 26.75 pence a share, after it revealed the details of a legal setback to the development of the world class East Kutai coal project in Indonesia (Read More).

This afternoon it told investors that it is not aware of any specific reason for today’s share price movement.

Meanwhile it reiterated that it continues to evaluate its legal options, including an appeal to the Administrative High Court in Jakarta.

Additionally it also reminded investors that it continues to talk to prospective partners for the development project (Read More).

At 15:20 on London's AIM market, Churchill shares were up 10.5 pence, about 40 percent, changing hands at 37.25 pence each. 

 

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Tue, 08 Mar 2011 15:21:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/21956/churchill-mining-not-aware-of-any-specific-reason-for-share-price-bounce-26182.html