Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Churchill Mining outlines key steps in arbitration over East Kutai

Churchill Mining outlines key steps in arbitration over East Kutai

---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.

View full CHL profile View Profile

Churchill Mining Timeline

Related Articles

Oracle
May 03 2018
One of the highlights for Oracle last year was signing a memorandum of understanding with Sichuan Provincial Investment and Power China for the Thar project
Drilling at an Aspire coal project in Mongolia
August 29 2018
The Ovoot Early Development Plan has been formulated and related funding commitments have been arranged.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use