Churchill sends letter to Yudhoyono

By Romel S. Gurky

In an attempt to resolve the long and dwindling dispute, London listed Churchill Mining Plc has decided to file a further formal letter to the Indonesian President Susilo Bambang Yudhoyono, "seeking support and legal protection to achieve an amicable and commercial resolution" for its investment in the 75 percent owned East Kutai Coal Project.

The company said the letter highlights its investment in Indonesia and the subsequent actions of various Indonesian parties, both government and private, aimed at illegally expropriating Churchill's legitimate rights to develop the project. Churchill believes these actions to be in direct breach of both Indonesian law and Indonesia's obligations under the Bilateral Investment Treaty between the United Kingdom and the Republic of Indonesia.

According to Churchill, the letter follows initial formal correspondence in November 2011 prompted by recent notations on the Indonesian Supreme Court's register of cases that indicate the Supreme Court intends to reject the appeal by Churchill/Ridlatama in relation to the revocation of the four mining licenses that make up the project's entirety.

"We are determined to continue to seek a full and legitimate remedy for our shareholders and have provided the opportunity for government intervention to protect our rights as a foreign investor in Indonesia," Churchill Mining's Chairman, David Quinlivan commented.

As previously reported, Churchill continues to prepare its claim against the Republic of Indonesia for direct breaches of Indonesia's obligations under the Bilateral Investment Treaty between the United Kingdom and the Republic of Indonesia. The Company will file its claim with the International Centre for Settlement of Investment Disputes in Washington D.C at the end of this month.

The company said that it will be seeking full relief owed to it under the provisions of the United Kingdom-Indonesia Bilateral Investment Treaty and International Law.

Editing by Er Audy Zandri