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Churchill Mining free to pursue damages claim

World Coal,

Churchill Mining has announced that an international tribunal has ruled in its favour, allowing the company to pursue claims for damages against the Indonesian government, relating to the expropriation of the firm’s rights over the East Kutai coal mine.


Chairman of Churchill Mining, David Quinlivan, commented: “We are pleased that the tribunal has rejected the Republic of Indonesia’s jurisdictional challenges and the tribunal decisions now allow Churchill and Planet to pursue their claims for damages against the Republic of Indonesia under the respective Bilateral Investment Treaties Indonesia entered into with the United Kingdom and Australia”.

In its ruling, the tribunal dismissed Indonesia’s challenged to the tribunal’s jurisdiction, according to Churchill.

Seeking damages

Churchill and its Australian subsidiary, Planet Mining, are seeking damages of up to US$ 1.05 billion, excluding interest, to settle the long-running dispute. The company began arbitration against the Indonesian government in May 2012 at the ICSID in Washington.

The East Kutai Coal project is a thermal coal deposit with a JORC resource of 2.730 billion tonnes.

Edited from various sources by Katie Woodward

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