Market Overview

Yudhoyono Ready to Face British Miner Churchill Mining Plc

Jakarta, Indonesia, Oct 24, 2012 - (ACN Newswire) - East Kutai Regency Head Isran Noor said that President Susilo Bambang Yudhoyono ready to face British miner Churchill Mining Plc. "The president said that he and the country were ready to face international arbitration over a multi-billion dollar suit filed by British miner Churchill Mining Plc concerning its operations in East Kalimantan. He doesn't want multinational corporations to do whatever they want with their international force, pressuring developing countries such as Indonesia. We are obligated to defend our honor, truth and justice," Isran said.

Churchill Mining is suing the government, President Susilo Bambang Yudhoyono and the East Kutai district over the revocation of its mining rights. It is seeking a $2 billion dollar compensation.

Isran explains, "Based on data of the Indonesian Investment Coordinating Board (BKPM) and the Ministry of Justice and Human Rights of the Republic of Indonesia, on November 23, 2005, ICD was established as a Foreign Investment Company (PMA) with authorized capital and paid-up capital of US$250,000, with the intention and purpose of engaging in Mining Services and Geology, which fall under Category 10101 KBLI - Standard Industrial Classification of Indonesia, and is not a Coal Mining Company, which falls under Category 0510 KBLI. It is clear that their operation as a Coal Mining Company is illegal."

Isran said, "Churchill published false information on the size of the estimated reserves in the concession area 2.73 billion metric tons in the four concessions in order to boost its share price. I think the Alternative Investment Market of the London Stock Exchange should know about this very important issue. This is illegal operation."

Isran said that the president had officially appointed, through a decree issued on Sept. 22, the district government to deal with the Churchill lawsuit.

"The president has also tasked the Justice and Human Rights Minister, Amir Syamsudin, to take the necessary actions so that the appointment of the East Kutai district government is registered and announced by the ICSID in line with the convention, regulations and rules of the CSID," Isran said.

-- Statement issued by PowerPR Asia Pacific for the Government of Indonesia, East Kutai local government.


Vanya Manuputty
Mobile: +62-813-80444507

Mexson Sitompul
Mobile: +62-812-8107200

PowerPR Asia Pacific, Jakarta
Tel: +62-21-2555-6781
Fax: +62-21-2555-6782

Source: Govt of Indonesia, East Kutai Local Govt

Copyright 2012 ACN Newswire. All rights reserved.

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