resource update, page-9

To my knowledge there was a contract under which IAU(a foreign entity) was supposed to gain an economic interest in a mining project of 80% with the other party being carried free.

This contract was, also to the best of my knowledge, a valid contract under the Indonesian law.

The law changed and under the new terms all the rights under the contract had to be moved to a licensing system to be granted by the Central or Provincial or Regional authorities. That is, a license had to be given to both IAU and its partner by the partner transferring 80% of its rights to IAU and that transfer being sanctioned by the Central, Provincial or Regional authorities as the case maybe.

IAU's partner not only failed or refused to transfer IAU's acquired rights under the previous law but also kicked IAU out of the exploration area.

In contractual law if a party is in position to honer the terms of a contract then it must do so.This is a basic principle. However is quite possible that behind the scenes IAU'S partner could be maneuvering so that there is local opposition to a license being granted to IAU and therefore that in order to safeguard the project they (IUA's partner) had to send IAU home or something like that.

Now, there is also a principle at law that says self-enriching without a just cause at expense of somebody else
is not permitted.

Thus, if IAU is kicked out from the project its partner would have to pay compensation to IAU or else would have enriched itself at the expense of IAU. Full stop.

Note. I am not a lawyer nor a student of law and all that I am saying is just my understanding of the issue and, of course, I can be plain wrong.