Churchill takes direct ownership in E. Kalimantan coal mine

UK firm Churchill Mining announced on Friday that, in accordance with the new Indonesian Mining Law, it has completed the initial stage of its Indonesian restructuring and has converted its 75% beneficial interest in the Ridlatama Tambang license area into a direct equity interest.

The Ridlatama Tambang license area is the larger of the two IUP licenses that make up the East Kutai Coal Project, with a resource of 2.545 billion tonnes, or 93.2% of the 2.730 billion tonne resource of the East Kutai Coal Project.

Churchill has also converted to a 75% direct ownership in PT Ridlatama Trade Powerindo, which holds a prospective 5,386 hectare license area adjacent to the Ridlatama Tambang license area, on which no drilling has been done.

On 12 January 2009 a new Indonesian Mining Law came into effect enabling foreign companies to take direct equity ownership in local PT companies holding mining concessions. Prior to the new Mining Law becoming effective, the Company held its interest in the East Kutai Coal Project through contractual arrangements similar to those typically used by other foreign companies operating in Indonesia.(alex)