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

Churchill Mining files US$1.315bn claim for damages in East Kutai case

Churchill Mining files US$1.315bn claim for damages in East Kutai case

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.

View full CHL profile View Profile

Churchill Mining Timeline

Related Articles

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