Intrepid Mines has pledged to appeal a South Jakarta District Court ruling which annulled the Australian miner’s Tujuh Bukit joint venture (JV), while giving a 70% project stake to IndoAust Mining and Paul Michael Willis. Intrepid says the appeal is warranted because important elements of the case appeared to have received limited acknowledgment.
Last December, Paul Michael Willis and IndoAust Mining representatives initiated proceedings against Intrepid and sued Intrepid’s 100%-owned unit Emperor Mines, two company executives, the company’s Indonesian JV partners PT Indo Multi Niaga (PT IMN), Andreas Reza Nazaruddin and Maya Miranda Ambarsari.
The legal action is in regard to the execution of a termination and settlement agreement between Nazaruddin, Ambarsari, IndoAust and Willis, and a deed of termination and release between IndoAust and Willis.
Intrepid was effectively locked out of the $5 billion project last year after the controllers of the PT IMN JV company transferred ownership of Intrepid’s 80% shareholding to another vehicle, PT Bumi Sukses Indo (BSI).
The South Jakarta District Court made an award in favour of the Plaintiffs, as follows:
- The Plaintiffs’ 70% economic interest in the Tujuh Bukit project was recognized, with the result that subsequent agreements entered into between IMN and Emperor, including the agreements establishing the Tujuh Bukit joint venture, were declared void;
- Compensation for material damages of $3.7 million in respect of alleged expenditure incurred in relation to the Tujuh Bukit project; compensation for immaterial damages, in the amount of $10 million, for intangible harm (the Plaintiffs had made a claim for $250 million); and
- The dismissal of the Defendants’ counterclaims.
Intrepid’s CEO Scott Lowe says, “We firmly believe that the expert testimony and evidence before the court warrants further consideration by the High Court of Jakarta. I remain confident that the group for appeal and reversal of the judgment in favour of Intrepid shareholders is very strong.”
The company continues to pursue its entitlements to the Tujuh Bukit project in arbitration proceedings commenced under the rules of the Singapore International Arbitration Centre, against IMN, Nazaruddin and Ambarsari.