Churchill to fight them on the breaches

15th Aug 2011 15:08

Churchill Mining has lodged an unlawful act claim against a member of the Ridlatama group after its notice of dispute was ignored. Churchill is seeking an order for damages to compensate for alleged losses suffered as a consequence of allegedly unlawful acts by Ridlatama group member, Andreas Rinaldi. The mining company did not receive a response to the notice of dispute regarding the East Kutai Coal Project which it delivered to Ridlatama, its Indonesian minority partner, on 4 July. Churchill alleges that the investor agreements entered into between its subsidiary PT Indonesia Coal Developement (ICD) and memebers of the Ridlatama group were breached. Churchill released a statement which said: "ICD will also commence arbitration proceedings in Singapore against other members of the Ridlatama Group who are parties to the investors agreements, under the rules of the International Chamber of Commerce, for their alleged breaches of the investors agreements. "ICD is seeking, amongst other things, a declaration that there have been breaches of the investors agreements and for damages to be assessed."The company will provide a further update to the market on these proceedings when available." The share price was down 13.85% to 21.00p at 15:22.