White Energy?s BCBC starts court proceeding against Bayan

Australia-listed coal upgrading firm White Energy Company Limited has said that the company?s subsidiaries ? BCBC Singapore Pte Ltd (BCBCS) and Binderless Coal Briquetting Company Pty Limited (BCBC) ? commenced proceedings in Singapore?s High Court against PT Bayan Resources Tbk and Bayan International Pte Ltd.

The proceedings related to White Energy?s 51 percent owned Indonesian subsidiary company PT Kaltim Supacoal (KCS), which is also 49 percent owned by Bayan.

?The issues in proceedings include a claim by BCBCS against Bayan for damages for breach of the joint venture deed between the KSC shareholders, including the obligation to supply coal to KSC and the obligation to provide funding to KSC,? the White Energy said in its statement.

On November 9, senior representatives of the White Energy and Bayan held discussion in Jakarta but failed to reach agreement on commercial terms relating to the coal supply by Bayan to KSC.

White Energy requested that Bayan continue to supply run of mine coal from its Tabang mine to KSC up until the end of June 2012, in order to enable KSC to finalize the testing of plant modification works currently in the final stages of completion, which are designed to allow the Tabang plant to operate at a commercial rate of production. (romel)