Several years ago, PT Merdeka Copper Gold Tbk (MDKA), which has a mining business license (IUP) in Pani through PT Pani Bersama Tambang (PT PBT), agreed with PT J Resources Asia Pacific Tbk (PSAB), which has a working contract (KK) in the block Pani through PT Gorontalo Sejahtera Mining (PT GSM), to form a joint venture in the Pani mining area. The parties later got into a dispute. Earlier this year, PT PBT filed an arbitration petition at the Singapore International Arbitration Center (SIAC) against PT J Resources Nusantara (PT JRN), another subsidiary of PSAB. PT PBT alleged PT JRN of having failed to fulfill its obligations to settle the agreed Conditional Shares Sale and Purchase Agreement (CSPA). PSAB denied the allegations. Two weeks ago, MDKA announced that the parties had submitted proposals to suspend the arbitration proceedings, which SIAC approved.
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