23rd Jun 2014 11:49
LONDON (Alliance News) - Churchill Mining PLC PLC Monday said it has increased its expectations for damages in the ongoing case against the Republic of Indonesia to USD1.32 billion, following an independent assessment.
The thermal coal producer said FTI Consulting Canada LLC found that the damages to Churchill and its subsidiary Planet Mining Pty Ltd should be USD1.15 billion plus pre-award interest of USD165.7 million, an increase from the company's expectations in May 2013 of USD1.05 billion.
Churchill cut down operations in May 2012 when it filed a Request for Arbitration against the Republic of Indonesia, alleging that Indonesia breached its obligations under the UK-Indonesia Bilateral Investment Treaty when licenses on its 75% owned East Kutai coal project were revoked.
The company said that its lawyers, Quinn Emanuel Urquhart & Sullivan, LLP have filed a supplemental memorial on quantum and damages which includes the new valuation.
It said that FTI calculated the value of Churchill's investment in the site using industry standards, based on a production rate of 50 million tonnes per year and a railway haulage scenario.
"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. We are, accordingly, looking forward to having the merits of our case determined by the International Centre for Settlement of Investment Disputes tribunal as soon as possible" Chairman David Quinlivan said in a statement.
In February, an arbitral tribunal rejected a jurisdictional challenge by the Republic of Indonesia, which allowed it to pursue claims for damages against the government.
The government had claimed that it had not consented to International Centre for Settlement of Investment Disputes arbitration of the dispute and that even if the tribunal found that it had consented, the tribunal would lack jurisdiction because Churchill's investments fell outside the scope of protected investments under the respective Bilateral Investment Treaties.
The ICSID rejected the claims and found that the tribunal has jurisdiction over the claims Churchill and another party Planet Mining Pty submitted.
The next step in the proceedings is that the Republic of Indonesia is now required to file its memorial of defence by 12 November 2014.
Churchill Mining shares were down 6.6% to 20.54 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Cloudified Holdings Limited