Court issues first tranche judgement on WEC, Bayan trial

By Ruli Setiawan

ASX-listed White Energy Company Limited(WEC) said that the Singapore International Commercial Court (SICC) released on Thursday its judgement in relation to the first tranche of trial to resolve legal dispute between the company and IDX-listed coal firm PT Bayan Resources Tbk

WEC subsidiaries BCBC Singapore Pte Ltd (BCBCS) and Binderless Coal Briquetting Company Pty Limited filed the lawsuit against PT Bayan Resources Tbk (BR) and Bayan International Pte Ltd in connection with the KSC joint venture.

"The first tranche of the trial was heard by the SICC in November 2015. The SICC released its judgement in relation to the first tranche of the trial yesterday evening," WEC said in a statement Friday.

The first tranche of the trial was to determine certain issues relating to Bayan?s obligations to fund the joint venture and its obligation to supply coal to the joint venture. Further, the Court also considered Bayan?s counterclaims brought against the WEC parties.

"The company is still reviewing the decision," WEC said.

The findings of the SICC in summary include the following:
? Bayan?s counterclaims against the WEC parties were rejected, with the Court finding that BCBCS was not under an implied contractual duty to use the reasonable skill and care to be expected ofa competent designer, builder and operator of coal preparation and briquetting plants in providing technical assistance to KSC. Further, there was no implied term of the JV Deed that BCBCS was under a contractual obligation to procure that KSC produce 1 MTPA of upgraded coal briquettes within a reasonable period of time.
? As for the coal supply obligation, the Court has declined to answer this question at this stage, concluding that it is a matter to be decided at the next tranche of the trial.
? BR was not obliged to provide funding to the joint venture in the period between November 2011 and 2 March 2012.

The company said it is pleased that Bayan?s counterclaim has been rejected and the company is continuing to review the judgement and will provide further updates as appropriate.

Separately, in relation to the freezing order held by BCBCS in respect of Bayan?s shares in Kangaroo Resources Limited,the company notes that the parties have agreed a settlement amount of $330,000 which is to be paid by Bayan to the company in respect of the costs awarded to BCBCS. "Payment is to be made following completion of the necessary forms relating to Indonesian withholding tax."

Editing by Reiner Simanjuntak