Bayan appoints lawyer over dispute with White Energy
Monday, January 16 2012 - 01:15 PM WIB
IDX-listed coal producer PT Bayan Resources Tbk has appointed lawyer as the company received suit filed by Singapore-based Straits Law Practice LLC, the lawyer for the BCBC Singapore Pte Ltd (BCBCS) and Binderless Coal Briquetting Company Pty Limited (BCBC) over dispute with Bayan.
BCBC Singapore and BCBC Australia are the subsidiaries of Australia-listed coal upgrading firm White Energy Company Limited.
?The company (Bayan Resources) has appointed lawyer to defend our rights before the law (in Singapore),? the company said in the statement.
The BCBC Singapore and BCBC Australia accused Bayan for damages of breaching the joint venture deed between PT Kaltim Supacoal (KSC) shareholders, including the obligation to supply coal to the KSC.
The White Energy controls 51 percent in KCS with 49 percent belong to Bayan.
On November 9, senior representatives of the White Energy and Bayan held discussion in Jakarta but failed to reach agreement on commercial terms relating to the coal supply by Bayan to KSC.
White Energy requested that Bayan continue to supply run of mine coal from its Tabang mine to KSC up until the end of June 2012, in order to enable KSC to finalize the testing of plant modification works currently in the final stages of completion, which are designed to allow the Tabang plant to operate at a commercial rate of production.
Editing by Adianto P. Simamora