WEC: Singapore court ruling pending

By Romel S. Gurky

ASX-listed White Energy Company Ltd (WEC) said that the Singapore Commercial Court (SICC) has reserved its judgement over a second tranche of litigation field by the company against two Indonesian coal firms.

?Written closing submissions were subsequently filed and final oral closing submissions were made in late April 2017 in Singapore. The SICC has reserved judgement,? WEC said in a statement last week.

WEC said the second tranche of the legal proceedings initiated by subsidiaries of White Energy, BCBC Singapore Pte Ltd (BCBCS) and Binderless Coal Briquetting Company Pty Limited, against PT Bayan Resources Tbk and Bayan International Pte Ltd relating to the PT Kaltim Supracoal (KSC) joint venture (51% owned by WEC) was heard by the SICC in early January 2017.

The key issues heard by the SICC included:
(a) Whether Bayan was under an obligation to supply and/or assist in supplying coal to KSC between November 2011 and March 2, 2012;
(b) If so, whether Bayan had breached its obligations to supply coal;
(c) Whether Bayan had repudiated the Joint Venture Deed (JV Deed) in breaching its coal supply obligation (if established); and/or by its words and conduct at meetings in November and December 2011; and/or by the wrongful issuance of a purported termination notice dated 21 February 2012;
(d) Whether BCBCS had:
(i) caused KSC to incur excess expenditure and/or excess debt; and/or
(ii) permitted White Energy to make public announcements in connection with the JV Deed, without Bayan's consent; and if so, whether such conduct (among other things) amounted to repudiation of the JV Deed.
(e) If Bayan is found to be liable for breach of its obligations in respect of coal supply and/or repudiation of the JV Deed, and on the assumption that the Tabang Plant would have achieved a production capacity of approximately 1 MTPA, whether as a result of such breach, BCBCS suffered loss.

The court released in April of last year its judgement in relation to the first tranche of the trial among others dismissing the counterclaims brought by Bayan.

Editing by Reiner Simanjuntak