30th Oct 2014 09:13
LONDON (Alliance News) - Churchill Mining PLC on Thursday saw its shares fall in early trade after it said its arbitration case against the Indonesian government is set to rumble on.
Churchill shares were down 5.1% to 21.82 pence. The shares hit an intraday low of 18.64 pence soon after the market open, making them one of the worst performers in the AIM All-Share
Churchill said the International Centre for Settlement of Investment Disputes in Washington, DC rejected Indonesia's application for a separate hearing on allegations of forgery and fraud in connection with its mining licences in the country.
The court ruled the amount of damages due to Churchill for the revocation of its mining licences in East Kalimantan in Indonesia would be determined separately, following the conclusion of the liability phase of the proceedings, a full hearing on which will take place in October next year.
The court also has yet to issue a ruling on Churchill's application for provisional protective measures to be put in place following the move by the Indonesian police in August to raid the company's Jakarta offices to remove documentary records and computer equipment.
The ICSID has been arbitrating on the dispute regarding the revoking of the licences and had ordered the review of a bundle of documents relating to the licenses.
While the company was meeting with Indonesian government officials to review the bundle in Singapore, Indonesian police raided its Jakarta office and seized a number of documents, computers and back up drives supposedly as part of a new police investigation into alleged license document forgery, the company said in a statement in September.
"We are pleased that the Arbitral Tribunal has rejected Indonesia's effort to derail the procedural timetable with its attempts to litigate piecemeal the merits of the case. We are, accordingly, looking forward to having our case determined by the ICSID tribunal in the most expedient manner possible," said Churchill Chairman David Quinlivan.
By Sam Unsted; [email protected]; @SamUAtAlliance
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