Churchill Mining filed appeal to Supreme Court

Irvin Avriano A.

Churchill Mining filed appeal to Supreme Court

JAKARTA: Churchill Mining Plc, London-based mining company, filed another third appeal to Supreme Court of Indonesia (Mahkamah Agung/MA) to overturn the decision of revoked licence in one of the company's main coal project in Kutai Timur.

The appeal addressed to withdraw of previous two appeal-result decision, both in Administrative High Court in Jakarta (Pengadilan Tinggi PTUN) and Administrative Tribunal (Pengadilan Tata Usaha Negara/PTUN) in Samarinda, East Kalimantan.

Based on the decision showed in Churchill's website on Monday, the appeal in the two administrative court was an effort to break the decision of the regent official (Bupati) for revoking mining license for four Churchill's mines in East Kutai Project last year.

The filing was a follow for their previous decision to take an appeal to the Supreme Court which already decided in September 15th. In the announcement, the company also stated still well funded with US$19.7 mio in cash, or equal to IDR176.8 billion, to funding the "appeal project". The amount is larger than the US$11.9 mio cash that been stated on its 2010 financial report page 3.

The financial statement also show the case was suspected irregularities by Churchill because there is a report by State Financial Audit Body (Badan Pemeriksa Keuangan/BPK) which show the licensed mining area overlapped with a licence issued to the Nusantara Group on February 18th.

Based on news in several websites, there are two Nusantara Group mentioned. One is agent brand holder for BMW which led by Joe Surya, and the other is abbreviation for Nusantara Energy Group owned by former Indonesia Elite Forces Commando (Komando Pasukan Khusus/Kopassus) Prabowo Subianto.

In the East Kutai Project, Churchill have 75% stake in PT Ridlatama Tambang together with their local partner Ridlatama Group. Ridlatama Tambang owns most of the concession in the East Kutai Project.

The four mining license revoked by the regent official last year and both the company and Ridlatama Group already sent objections September last year because assess the judgement have wrong administrative protocol in the revocation.

Nonetheless, PTUN Samarinda rejected such claims because assess the regent official revocation not violate any administrative rules. PTUN Samarinda based its decision to the Ministry of Forestry letter to Kutai Timur regent official dated on April 2010 which recommended the license revocation after received report from local community.

People around the mining already decided that the company's mining activity already caused damage to the forest area. The same decision also set by PTUN Jakarta early this month.

In other side, Churchill already sue Ridlatama Group in Tangerang High Court after considered negligent in the investment agreement between two entities, which indicates the joint venture broke out.

After that, Churchill later gain support from Rachmat Gobel and Fara Luwia which buy 16.5% stake on the company through PT Gobel International in May and also being setup as non-executive directors.

Beside East Kutai Project, Churchill also have part in Sendawar Coal and Methane Bed in East Kaalimantan which not operated yet, and Spitfire Resources, The South Woodie Woodie manganese project in Australia.

Churchill's shares is listed in London Stock Exchange and coded CHL. The company commandeered by David F Quinlivan. Based on its website, Churchill's the significant shareholder consist of Vidacos Nominees Ltd 26.04%, GL Global Investment Ltd 16.00%, and Indo Setubara Ltd 12%.

Snapshot about Prabowo

Prabowo is a strong figure person both in social, politics, and also in business. He also acted as Chairman of Supervisory Board for Gerindra Party and previously have close relation either to national financial figure Soemitro Djojohadikoesoemo (as son) and former Indonesia president Soeharto, as former son in law.

Nusantara Energy conclude segments in oil & gas, mining, plantation, forestry, and pulp & paper which founded by Prabowo together with Johan Teguh Sugianto, and Widjono Hardjanto. The business group claimed already have 10,000 employees and US$10 bio assets.

In paper industry, the group owns PT Kiani Kertas and PT Kiani Lestari, while in plantation and palm oil they have PT Tidar Kerinci Agung.

One of Nusantara Energy's subsidiary is PT Nusantara Energindo Coal, which a holding company for at least seven subsidiaries which claimed to own mining concession in 60,000 hectares areas and 6 billion tonnes of reserves.

The subsidiaries names includes PT Nusantara Kaltim Coal, PT Erabara Persada Nusantara, PT Nusantara Wahau Coal, PT Batubara Nusantara Coal, PT Kaltim Nusantara Coal, PT Nusantara Santan Coal, and PT Nusantara Berau Coal. Nusantara Berau Coal already have output and exported to China 20,000 metric tonnes per month since May 2005.