TEMPO.CO, Jakarta - London-listed miner Churchill Mining is in talks with the Indonesian government. A source wishing to remain unidentified said the negotiation is aimed at settling a dispute for one of a mining concession with one of the world's biggest coal reserves.
Churchill and the Indonesian government have been battling in an international arbitration since 2012 over the license an East Kalimantan coal project estimated to hold 2.73 billion tons of coal reserves. A source familiar with the negotiation said there is a chance that the two sides might find a way to settle the dispute.
"Based on the talks, I am confident there will be a settlement," said the source.
Indonesia and Churchil are disputing the ownership of a 350-square-km mine in East Kutai. The London miner estimated the site to worth around US$1.5 billion. The source said that while talks were ongoing, the arbitration process would continue.
Churchill has spent more than US$10 million on the legal matter. A decision is expected to be delivered sometime next year.
The Indonesian authority and Churchill's office have not responded to a request for comment.
REUTERS | AYU PRIMA SANDI