Churchill to pledge asset for stay on enforcement of ICSID ruling
Saturday, July 1 2017 - 03:21 AM WIB
LSE-listed Churchill Mining Plc said that it is preparing documentations to pledge its port land property in East Kalimantan as part of conditions requested by an ad hoc committee of the International Centre for Settlement of Investment Dispute (ICSID) to continue the stay on enforcement of the 2016 ICSID ruling.
?Subject to the company pledging the port land property that it had purchased in the East Kalimantan Province of Indonesia for the East Kutai Coal Project as security, the stay on enforcement of the award will continue pending a decision on the annulment application,? Churchill said in an update statement on Wednesday regarding the annulment proceedings.
The statement said that in its ruling, the ICSID ad hoc committee has called for the company to use its best efforts to implement the pledge, to provide an update on progress to the ICSID Secretariat within 15 days, and provide a copy of the pledge to the committee and the ICSID Secretariat within 30 days.
?The committee has also stated that if implementation of the pledge referred to above is not complied with, the stay on enforcement will be automatically terminated,? Churchill said. ?The company has accordingly commenced work on preparation of pledge documentation,? it added.
ICSID granted in December of last year Indonesian government's application to dismiss claims filed in 2014 by Churchill Mining Plc and its subsidiary Planet Mining Pty Ltd for damages arising out of the revocation of the mining licenses that made up the East Kutai Coal Project (EKCP) in East Kalimantan Province.
Churchill accused the Indonesian government of unlawfully revoking its mining license over the East Kutai coal project. But the Indonesian government accused Churchill of falsifying license documents of the East Kutai coal project. Churchill has been ordered by ICSID to also pay a total of US$ 9,446,528 in costs and arbitration tribunal fees.
But the company on March 31 lodged an application for an annulment of the ICSID tribunal ruling. As part of its annulment application, the company requested a stay of enforcement of the award. (*)
Editing by Reiner Simanjuntak