Churchill says Ridlatama?s counter-claim baseless

Dispute between London-based Churchill Mining and Ridlatama Group continues to heat up as Churchill argued that a counter-claim by Ridlatama against Churchill?s subsidiary PT Indonesia Coal Development (ICD) was baseless.

The counter-claim seeks an order that ICD's 75 percent interests in PT Ridlatama Tambang Mineral and PT Trade Powerdino be declared null and void.

?ICD considers Ridlatama's counter-claim frivolous and categorically denies the allegations made. All relevant payments were made, and ICD continues to believe the claims to be baseless,? Churchill says in a statement

On 15 August 2011, Churchill's subsidiary ICD lodged a claim against Andreas Rinaldi in Indonesia in addition to commencing arbitration proceedings in Singapore against other members of Ridlatama Group for breaches of investors agreements.

On 11 November 2011, ICD received certain letters from Ridlatama Group companies by which they purported to terminate the 2007 investors agreement with the ICD.

Further to the above arbitration proceedings, ICD has now been served with a counter-claim filed on behalf of Ridlatama Group.

The claim is based essentially on the same matters alleged in the above referenced letters and described in the 11 November announcement, namely alleged failure to make certain payments by ICD.

ICD has referred the new claims to its solicitors in Indonesia and believed these claims have no commercial or legal merit and would continue to take whatever action it deems necessary to fully protect its legal rights in this matter. (romel)