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COMPANY PROFILE

CHURCHILL MINING PLC

Churchill Mining Plc (“Churchill” or “the Company”) listed on the UK NEX Exchange in June 2017 following a previous listing on the UK AIM Exchange since 2005. Churchill’s growth path accelerated following the discovery of a world-class thermal coal deposit in the East Kutai Regency of Kalimantan (“EKCP”), Indonesia following an intensive and targeted exploration program. Churchill had taken the EKCP discovery through to feasibility in readiness for funding and the commencement of construction. Since then Churchill and its partners were subjected to a negative ruling from the regional Samarinda Administrative Tribunal that sought to ratify the Bupati’s improper unilateral decision to revoke the EKCP licenses. Churchill appealed the decision to the Administrative High Court in Jakarta and then the Indonesian Supreme Court who both rejected the appeal.

International Arbitration against the Republic of Indonesia

In 2012, Churchill moved to file a claim of international arbitration against the Republic of Indonesia for breaches of Indonesia’s obligations under the Bilateral Investment Treaties between the United Kingdom, Australia and the Republic of Indonesia. A supplemental memorial on quantum and damages was filed following the engagement of international valuation experts FTI Consulting Canada LLC who prepared an independent assessment of Churchill/Planet’s damages to Churchill/Planet of US$1,149.90 million plus pre-award interest of US$165.70 million for a total of US$1,315.60 million.

In September 2014, Indonesia filed an Application for Dismissal of Churchill’s claims alleging forged and fabricated EKCP licenses. In December 2016, the ICSID Tribunal granted Indonesia’s application to dismiss the Churchill claims for damages and ordered Churchill to pay a total of US$9.44m in costs and arbitration tribunal fees. 

 

On 31 March 2017, following a detailed analysis of the adverse award, Churchill lodged an application to annul the award under Article 52 of the ICSID convention. A hearing on annulment was conducted in Singapore in July 2018 and the decision on Churchill’s annulment application is pending.

 

Information on the progress of Churchill/Planet’s claim against the Republic of Indonesia can be found at the website of the International Centre for Settlement of Investment Disputes at icsid.worldbank.org/apps/ICSIDWEB/Pages/default.aspx 

(Search under cases for “Churchill”)