ICSID arbitral tribunal rejects RI jurisdictional challenges
Wednesday, February 26 2014 - 01:44 AM WIB
UK-based coal miner Churchill Mining Plc revealed Wednesday that the International Centre for Settlement of Investment Disputes (ICSID) arbitral tribunal has rejected the Republic of Indonesia?s challenges to the tribunal?s jurisdiction in hearing claims filed by the company.
"We are pleased that the Tribunal has rejected the Republic of Indonesia's jurisdictional challenges and the Tribunal decisions now allow Churchill and Planet to pursue their claims for damages against the Republic of Indonesia under the respective Bilateral Investment Treaties Indonesia entered into with the United Kingdom and Australia" said Churchill's Chairman David Quinlivan in a statement.
Churchill filed in May of 2012 a Request for Arbitration with ICSID against the Republic of Indonesia (RI), alleging that Indonesia breached its obligations under the UK-Indonesia Bilateral Investment Treaty when licenses on the East Kutai coal project in Kalimantan were revoked.
Churchill?s Australian subsidiary Planet Mining Pty Ltd, which via its 5 percent shareholding in PT Indonesia Coal Development also held an interest in the East Kutai Coal Project, filed a separate arbitration with the ICSID against RI pursuant to the Australia-Indonesia Bilateral Investment Treaty (the Planet Arbitration). The Churchill Arbitration and Planet Arbitration have subsequently been consolidated into a single proceeding.
The government of Indonesia then made a challenge on whether ICSID has the jurisdiction to hear the Churchill claims.
In its ruling, the Tribunal dismissed the Republic of Indonesia's challenges and found that the Tribunal has jurisdiction over the claims Churchill and Planet have submitted. Full copies of the Tribunal decisions on jurisdiction will be available on the company's website www.churchillmining.com.
In its announcement of 10 May 2013, Churchill provided a preliminary estimate of its and Planet's damages as a result of the actions taken by the Republic of Indonesia of not less than US$1.054 billion, excluding interest. This estimate remains under review and Churchill and Planet will finalize their damages presentation in the course of the arbitration proceedings.
Churchill said that the company and its lawyers, Quinn Emanuel Urquhart & Sullivan, LLP will now seek directions from the Tribunal on the schedule for submissions and hearings on Churchill's claims for damages.
Editing by Reiner Simanjuntak