World Bank arbitrators asserted jurisdiction Feb. 24 over claims for more than $1 billion brought by Churchill Mining plc and its Australian affiliate alleging that the Republic of Indonesia expropriated Churchill’s coal mining concession in East Kutai, Indonesia.
In its rulings, the arbitrators rejected both of Indonesia’s arguments for dismissal. They held that the coal concession fell within the scope of Indonesia’s investment treaties with Britain and Australia because the requirement that the investment be “granted admission” was satisfied by Indonesia approving the initial investment, and did not require a showing of ongoing approval. In addition, they held that Indonesia had given advance consent to the claim under the terms of the British treaty, and had expressed consent under the Australian treaty by later issuing letters of approval to local subsidiaries of the claimant.
