White Energy updates E. Kalimantan coal upgrading project
Friday, July 29 2016 - 08:23 AM WIB
PT Kaltim Supacoal (KSC) ? WEC 51%
Update of legal dispute
On 12 May 2016, the Singapore International Commercial Court (SICC) released its judgment in relation to the first tranche of the trial in connection with the legal proceedings initiated by subsidiaries of White Energy, against PT Bayan Resources Tbk and Bayan International Pte Ltd (Bayan) over the KSC joint venture. Bayan brought a counterclaim in these proceedings against White Energy.
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 White Energy.
The findings of the SICC in summary include the following:
? The Bayan counterclaims against White Energy were rejected;
? 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; and
? Bayan was not obliged to provide funding to the joint venture in the period between November 2011 and 2 March 2012.
Neither party have appealed the decision.
As a result of the counterclaim being dismissed, White Energy has no further contractual liability in relation to the KSC joint venture.
The parties have been directed to attend a Case Management Conference before the SICC on 5 August 2016.
White Energy and Bayan have reached agreement for the settlement of costs in relation to the freezing order obtained over Bayan?s shares in Kangaroo Resources Limited, with Bayan to pay $330,000 to White Energy following completion of documents relating to Indonesian withholding tax. (end of excerpt)