White Energy updates E. Kalimantan coal upgrading project

The following is an excerpt taken from White Energy Company (WEC)?s quarterly report ended 31 December 2016 released on Tuesday

PT Kaltim Supacoal (KSC) ? WEC 51%

Update of legal dispute
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 (?Bayan") relating to the KSC joint venture was heard by the Singapore International Commercial Court (?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 2 March 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.

Two rounds of written closing submissions are to be filed. The first round of written closing submissions are due to be filed by the end of February 2017. The second round of written closing submissions (in reply to the first set of closing submissions and in response to any queries by the SICC) are to be filed by the end of March 2017. Oral closing submissions (if deemed necessary by the SICC) are to be made on 20 April 2017 in Singapore. (end of excerpt)