Churchill files arbitration against Indonesian govt

By Romel S. Gurky

London-listed firm Churchill Mining Plc has filed a claim in an international arbitration in Washington against Indonesian government over dispute in the East Kutai Coal Project (EKCP), of which Churchill holds a 75 percent interest.

The claim, filed on 22 May 2012 at the International Centre for Settlement of Investment Disputes ("ICSID") in Washington DC, accused Indonesian government for breaching obligations under the Bilateral Investment Treaty between the United Kingdom and the Republic of Indonesia in resolving the dispute.

Churchill is seeking the full relief owed to it under the provisions of the UK-Indonesia BIT and under International law.

"The Board of Churchill is concerned that it has had to resort to international arbitration with an emerging economy such as the Republic of Indonesia. At all levels there seems to be a lack of support from Indonesia with regard to our contentions on the EKCP. We look forward to now addressing and rectifying these issues on the balanced platform that international arbitration at ICSID provides foreign investors." Churchill's Chairman, David Quinlivan commented,

Churchill earlier said that it would file a formal letter to the Indonesian President Susilo Bambang Yudhoyono, "seeking support and legal protection to achieve resolution on East Kutai Coal Project?s case.

Editing by Adianto P. Simamora