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Pin to quick picksChill Brands Share News (CHLL)

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CORRECTED-Churchill pushes on with $2 bln Indonesia mine fight despite office blaze

Mon, 16th Mar 2015 10:59

(Corrects paragraph 5 to show arbitration expected to concludein 2016, not 2017)

By Michael Taylor

JAKARTA, March 16 (Reuters) - A small London-listed miner ispushing ahead and confident of victory in its $2 billioninternational arbitration battle with Indonesia, the company'schairman said on Monday, after a mysterious fire hit its Jakartaoffices last week.

Churchill Mining's Indonesia subsidiary officeswere among the top four floors at Wisma Kosgoro building whichwere damaged by a major fire last Monday. Police andfirefighters are still investigating the cause of the blaze.

Churchill has been fighting an arbitration dispute with theIndonesian government over one of the world's biggestundeveloped coal reserves in East Kalimantan since 2012 andexpects a decision sometime next year, company chairman DavidQuinlivan told Reuters on Monday.

Churchill's arbitration case is over the ownership of a350-square-km (135-square-mile) mine site in East Kutai that isestimated to contain 2.8 billion tonnes of coal reserves.

"It is still likely that it will be 2016," Quinlivan saidabout the international arbitration's conclusion. "We aresupremely confident."

Quinlivan said the fire at the company's Jakarta officefollows a police raid on the same office last year.

"It's our main office in Indonesia and all of a sudden therewas a fire started and (the) reasons are unknown," Quinlivansaid by telephone in Perth. "It was the main source of ourIndonesian documents."

"This is another one of those coincidences that happens --just like the police raid on the office last year (that) wastimed when there was an (arbitration) document examinationoccurring in Singapore," he added. "Lots of coincidental thingshappening."

Churchill's office was raided last September by police, whoseized computers and hard copy documents while looking forevidence of alleged forgery of documents. No charges havefollowed the raid, Quinlivan said.

Indonesia, which is the world's top thermal coal exporter,is currently looking at ways to increase foreign investment at atime when the economy is growing at the slowest pace for fiveyears.

The Churchill case is unlikely to help attract the largeinfrastructure project investments that president Joko Widodohas said is a key focus for his government.

"I hear from our Indonesian colleagues that the newpresident is somewhat annoyed that this case is here, runningand a distraction to his foreign investment plans and ability tosource capital for major infrastructure projects," Quinlivanadded.

Indonesia's attorney general's office was unable to give animmediate comment on Monday. (Additional reporting by Dennys Kapa; Reporting by MichaelTaylor; Editing by Tom Hogue and Michael Perry)

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