Court delays final decision on Armeno-Merukh dispute

The South Jakarta District Court delayed on Monday reading the final decision on the dispute pitting Canadian mining firm Ag Armeno Mines and Minerals Inc. and Indonesian miner Yusuf Merukh until next Monday.

Court secretary Dimyati told Petromindo. Com the delay was because the documents on the final decision "have not yet been completed".

Armeno's lawyer Rofinus Lubis of Julius Rizaldi and Partners confirmed the delay.

"I don't know the reasons for the delay," he said, adding the court had three times delayed the verdict.

Armeno, which is listed on the Vancouver Stock Exchange, filed a lawsuit against Yusuf Merukh in the court last year on charges that the latter had violated the agreement allowing the former to acquire 18 percent of the former's shares in gold mining company PT Newmont Nusatenggara.

Under the agreement signed in May 1998, Armeno was granted the sole and exclusive option to acquire a 18 percent stake in the company and Merukh will receive 50 million shares in Armeno and US$2 million in cash payment in return.

Merukh has 20 percent shares in the company which has been developing a giant gold project in Batu Hijau, West Nusa Tenggara. His partners in the company are American firm Newmont (45 percent) and Japanese firm Sumitomo Corporation (35 percent).

Armeno accused Yusuf of breaching the agreement following its failure to conduct the due diligence on the gold project.

The Supreme Court of British Columbia, where Armeno first filed a suit against Merukh, had ruled in favor of Armeno, ordering Merukh to pay compensation to Armeno.

Since Canada and Indonesia do not have a bilateral agreement on legal matters, the verdict could not be executed in Indonesia and Armeno had to file another suit in the local court. According to Lubis, the Supreme Court of British Columbia's verdict could only be used as evidence during the hearing in the local court. (*)