Churchill Mining PLC is an AIM listed (CHL) mining company with a significant thermal coal development project located in the East Kutai Regency of Kalimantan, Indonesia, where to date more than 2.73 billion tonnes of coal resource has been defined to JORC standard. The project feasibility study has been completed, indicating an economic and desirable project and the study forms the platform for the next stage in the development of the Project. In addition to the East Kutai Coal Project, Churchill has interests in the Sendawar Coal Bed Methane Project in East Kalimantan, Indonesia and a strategic holding in Spitfire Resources, who are developing the South Woodie Woodie Manganese Project in Western Australia.
16/05/12
Second Price Monitoring Extn16/05/12
Price Monitoring Extension10/05/12
Directorate Change04/05/12
Update on International Arbitration03/04/12
Update on Appeal to Supreme Court
11/04/12
Churchill says it has been subjected to a sustained campaign to expropriate its rights as a legitimate foreign investor in Indonesia. It’s now looking to international arbitration as it appears set to lose an appeal in Jakarta’s Supreme Court.
03/05/11
Shares in Churchill Mining 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.
13/03/11
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.
23/09/10
The company this morning unveiled the long-awaited feasibility study on its world class coal deposit in Indonesia. Judging from the comments of managing director Paul Mazak there ought to be no shortage of interest when it casts the net for joint venture partners and potential buyers of the asset.
21/04/10
Having secured Credit Suisse as strategic advisor for developing East Kutai, the company is poised for the leap into a higher league
10/05/12
Churchill Mining appoints John Nagulendran as non-exec director04/05/12
Churchill Mining files new formal letter to Indonesia president in East Kutai coal project dispute03/04/12
Churchill Mining to accelerate international arbitration as Indonesia’s Supreme Court rejects appeal16/03/12
Churchill Mining to consider international arbitration in Indonesia dispute23/01/12
Churchill Mining: Three judges chosen for appeal at Supreme Court of Indonesia
30/09/2011
21/04/2011
14/03/2011
17/06/2009
Churchill Mining PLC (“Churchill” or “the Company”) listed on the Alternative Investment Market of the London Stock Exchange in April 2005.
Churchill’s business plan is to leverage off the growth currently being experienced in China and India and in particular their appetite for raw materials used as feedstock in their burgeoning energy and steel industries.
Churchill’s growth plan quickly accelerated following the discovery of a significant thermal coal deposit in the East Kutai Regency of Kalimantan, Indonesia. To date more than 2.73 billion tonnes of coal resource has been defined to JORC standard. The project is comprised of four contiguous coal concessions covering an area of 350km2, with the resource as currently defined situated within two of the four concessions. Churchill has a 75% interest in the project, with its Indonesian partners the Ridlatama Group owning the remaining 25%. Churchill is working with the Ridlatama Group to develop the Project.
The project feasibility study has been completed and forms the platform for the next stage in the development of the Project. The Project is the second largest in development in Indonesia with the following highlights:
In addition to the East Kutai Coal Project, Churchill has interests in the Sendawar Coal Bed Methane Project in East Kalimantan, Indonesia. Acquired in 2006, the project is sited over a large CBM basin.
Churchill also retains an exposure to the manganese sector via its 21.74% shareholding in ASX-listed explorer Spitfire Resources Limited. Spitfire is exploring the South Woodie Woodie project in Western Australia, a project which covers more than 1,800 square kilometres of granted tenements and tenement applications. Spitfire also has a portfolio of thermal coal projects in Tasmania.
Background
The East Kutai Coal Project is a world-class thermal coal deposit, with a JORC Mining Reserve of 961 million tonnes and a JORC Mining Resource of 2.730 billion tonnes. The feasibility study was completed in September 2010.
Project History
The project is comprised of four contiguous coal concessions covering an area of 350km2, with the resource as currently defined situated within two of the four concessions.
Churchill Mining Plc and its Indonesian partners the Ridlatama Group intend to increase the project coal production rate by up to 10mtpa to 35mtpa. Coal production from the Northern Pit would increase from 20mtpa to 25-30mtpa and production from the Southern Pit would remain at 5mtpa.
Churchill’s feasibility and development work has identified that planned mine facilities at the Northern Pit have the capacity to support a mining production rate of 40-45mtpa. In this context, Churchill has executed project optimization studies which show that the overland conveyor, which will transport the coal from the Northern Pit, has an enhanced capacity of 25-30mtpa, an increase of 5-10mtpa.
In addition to the Northern Pit production, and further to the MOU signed with PT. Perusahaan Listrik Negara (PLN), the Indonesian state electricity firm, in April 2010, Churchill continues to work on plans for the purchase of 5mtpa of coal from the Southern Pit, which would fulfill Churchill’s Indonesian Domestic Market Obligation (“DMO”). PLN is now reviewing the potential to utilize its coal drying and enhancement technology on the project’s coal, which, in testing, upgraded the coal from sub-bituminous to bituminous, considerably increasing its value.
Churchill also continues to work closely with its strategic adviser, Credit Suisse, in reviewing development options for the project. The optimized feasibility study forms the platform for Credit Suisse’s work as it evaluates Churchill’s options for the project and the next stages in its development.
The Sendawar Coal Bed Methane Project
Background
The Sendawar Coal Bed Methane Project is located in the established coal production region of East Kalimantan, Indonesia.
The CBM Project covers more than 800 square kilometres of prospective ground in close proximity to the operating coal mines and with potentially more than 5 trillion cubic feet of natural gas. Churchill has initiated discussions regarding the eventual development of this project with international oil, gas and CBM companies for the provision of technical assistance, off-take agreements and potential joint ventures.
Investments
The South Woodie Woodie Manganese Project
HOLDING IN SPITFIRE RESOURCES (18.45%)
Spitfire Resources Limited (Australian Securities Exchange Ticker: SPI) is an Australian minerals company focused on the exploration and development of raw materials for the carbon steel and energy sectors.
Originally established in 2007 as a spin-off of the Australian manganese assets of the AIM-listed coal company, Churchill Mining PLC, Spitfire has developed a diversified minerals portfolio comprising:
the South Woodie Woodie Manganese Project, located in the heart of an emerging manganese province in the East Pilbara region of Western Australia, where it has defined an initial JORC compliant manganese resource inventory at the Tally-Ho Deposit and is aggressively exploring for other manganese deposits;
an emerging thermal coal portfolio in Tasmania, located close to established infrastructure including Rail, Roads and Ports; and
a nickel-copper and platinum group elements (PGE) exploration project in the Northern Territory.
Visit the Spitfire Resources website
THE DIRECTORS
David Quinlivan - Chairman
Mr Quinlivan is a Mining Engineer and Principal of Borden Mining Services. With almost 30 years experience on projects throughout the world, Mr Quinlivan is familiar with all aspects of resources developments from grass roots exploration through to bankable feasibility reviews and detailed mining programmes. He is currently Chief Executive Officer of Mt Gibson Mining Limited, a mid-tier iron ore producer in Australia.
Mr Quinlivan is a Fellow of the Australian Institute of Mining and Metallurgy, Fellow of the Financial Services Institute of Australia, Member of the Mining Industry Consultants Association and Member of the Institute of Arbitrators & Mediators Australia. He is also a Non Executive Director of ASX-listed gold producer Avoca Resources Ltd. Mr Quinlivan is responsible for board performance and bringing technical excellence to Churchill Mining Plc.
Faroek Basrewan - Non-Executive Director
Mr Basrewan specialises in dealing with the various levels of Indonesian central, provincial and local government. A graduate in law from Indonesian Christian University, Mr Basrewan has had a long and distinguished career in general mediation and dispute resolution, government and regulatory relations within Indonesia.
Mr Basrewan has distinguished himself in service to Indonesia as Special Staff to the Minister of Defence and has carried out various assignments for the Indonesian Government over many years. He was the Special Assistant to the first democratically elected Indonesian President, Abdul Rachman Wahid (Gustur).
He is currently Special Advisor and Special Assistant to Dr Alwi Shihab, the Indonesian President's Envoy to the Middle East.
Jan Castro - Non Executive Director
Mr. Castro is the Managing Director of Pala Investments AG, the exclusive advisor to a US$ 1.0 billion investment company focused on the mining and natural resources sector. As a long-term partner, Pala leverages its extensive mining and natural resources sector experience to provide strategic advice and innovative financing solutions.
Prior to founding Pala in July 2006, Mr. Castro was Senior Vice President of Investments and Corporate Affairs for Mechel OAO, a NYSE-listed company and one of Russia's largest coal companies, where his primary responsibilities covered mergers and acquisitions, non-core asset disposals and investor and public relations. He was also responsible for Mechel's IPO in 2004.
Mr. Castro currently serves on the Boards of Anatolia Minerals Development Ltd, Avoca Resources Limited, Gemcom Software International Inc., Norcast Castings Company Limited and Dumas Contracting Ltd.
Mr. Castro received his J.D. and B.A. from Columbia University.
Nominated Adviser
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46 Worship Street
London EC2A 2EA
Tel: +44 (0) 207 492 4750
Broker
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Contact us by post:
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By phone:
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