Churchill files for $1.32b damages claim against RI
Tuesday, June 24 2014 - 04:04 AM WIB
An international valuation expert hired by UK-based coal mining firm Churchill Mining plc estimates that the damages suffered by the company and its subsidiary Planet Mining Pty Ltd due to the revocation of its mining licenses in East Kalimantan, total US$1.315 billion.
Churchill and Planet have filed an international arbitration case with the Washington-based International Centre for Settlement of Investment Disputes (ICSID) against the Republic of Indonesia in relation to the cancellation of the mining licenses that made up the East Kutai Coal Project in East Kalimantan (EKCP), in which Churchill/Planet claims to have a 75 percent interest.
In an update statement Monday about the arbitration case, the company said that Churchill/Planet's lawyers, Quinn Emanuel Urquhart & Sullivan, have filed a supplemental memorial on quantum and damages following the engagement of international valuation experts FTI Consulting Canada LLC (FTI) who prepared an independent assessment of Churchill/Planet's damages.
?FTI determined the damages to Churchill/Planet of US$1,149.90 million plus pre-award interest of $165.70 million for a total of $1,315.60 million,? the statement said.
FTI calculated the fair market value of Churchill/Planet's investment in the EKCP using the industry standard prime methodology Discounted Cash Flow analysis. The analysis was based on a production rate of 50Mtpa and a railway haulage scenario, the statement said.
"This valuation further confirms the billion dollar plus loss that we believe was suffered by our shareholders as a result of the actions taken by the Republic of Indonesia in relation to the EKCP mining tenements. We are, accordingly, looking forward to having the merits of our case determined by the ICSID tribunal as soon as possible" said Churchill's Chairman David Quinlivan.
The next step in the proceedings is that the Republic of Indonesia is now required to file its memorial of defence by 12 November 2014.
Editing by Reiner Simanjuntak