An international tribunal has rejected Churchill Mining’s claims for damages against Indonesia over the revocation of the mining licenses for the East Kutai Coal Project in East Kalimantan, Indonesia.
Churchill appealed to the International Centre for Settlement of Investment Disputes (ICSID), an international arbitration institution established in 1965 and part of the World Bank Group, after claiming the Indonesian government unlawfully expropriated the licenses for the East Kutai project after the discover of substantial coal deposits.
As part of the finding, ICSID ordered Churchill to pay a total of around US$9.5 million in costs and arbitration tribunal fees.
“We are obviously extremely disappointed by the tribunal’s decision,” said Churchill’s Chairman, David Quinlivan. The company added that it believes there are ground to annul this finding and is working with its lawyers to determine grounds. As part of any annulment finding, Churchill would seek a stay of the costs orders.
Churchill’s shares remain suspended on AIM pending clarification of the company’s financial position.
Read the article online at: https://www.globalminingreview.com/finance-business/07122016/arbitration-panel-rejects-churchills-claim/