In accordance with Indonesia’s new Mining Law, Churchill Mining has completed the initial stage of its Indonesian restructuring and taken direct ownership of Ridlatama Tambang licence area at its East Kutai Coal Project.
The Ridlatama Tambang licence area is the larger of two IUP licenses that make up the East Kutai project, with a resource of 2.545 billion tonnes, or 93.2% of the 2.730 billion tonne total resource. Churchill has also converted to a 75% direct ownership in PT Ridlatama Trade Powerindo, which holds a prospective 5386 hectare licence area adjacent to the Ridlatama Tambang licence and on which no drilling has been done to date.
In January 2009 a new Mining Law came into effect enabling foreign companies to take direct equity ownership in local companies holding mining concessions.
Prior to the new Mining Law becoming effective, the company held its interest in the East Kutai project through contractual arrangements similar to those typically used by other foreign companies operating in Indonesia.
Mr Paul Mazak MD of Churchill said that “The new Indonesian Mining Law provides the direct ownership solution that simplifies our Indonesian structure significantly. We have worked closely with our Indonesian partners at the Ridlatama Group and our advisors Hiswara Bunjamin & Tandjung, in association with Herbert Smith LLP, PricewaterhouseCoopers Indonesia and Pala Investments AG, to achieve an excellent outcome consistent with the new Mining Law in Indonesia.”
He added that “Direct ownership provides us with a considerably higher degree of flexibility over East Kutai which will enable us to accelerate our development program going forward.”
(Sourced from The Asia Miner)
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