Churchill MiningPlc said April 13 that Indonesia failed to pay its share of an advancepayment, totaling US$200,000, to the International Centre for the Settlement ofInvestment Disputes, or ICSID, and is in default of its arbitration obligations.

The company said Indonesia's failure to pay its share and itslack of communication on the issue indicates that the country might no longer beinterested in the arbitration proceedings.Churchill has sought unequivocal clarification from the government on the issue.

If the country does not respond by April 20, Churchill plansto file an application under Rule 42 of the ICSID arbitration and ask the tribunalto fix a schedule for the completion of the case without Indonesia.

The government had in May 2012 revoked licenses that made upthe East Kutai coalproject.