Panel rejects British company's $1.3B case against Indonesia

An international tribunal has ruled against a London-listed mining company seeking $1.3 billion in compensation from Indonesia's government for terminating coal mining licenses that were forged by an Indonesian business partner.

The World Bank-affiliated International Centre for Settlement of Investment Disputes ruled earlier this week that Churchill Mining's entire investment in East Kalimantan was tainted by the fraud and wasn't protected by international investment treaties.

The tribunal ordered Churchill, which was joined in the case by its Australian subsidiary, to pay costs of $9.4 million to the Indonesian government.

The company said in a statement it believes there are grounds for the decision to be annulled.

The tribunal's 210-page ruling said all 34 permits and related documents for the mine were forged.