A Once-in-a-Lifetime Discovery
Woolwich Mining Co. – A Case in International Risk
Presented by: Shifali
Course: Risk Management and Security
August 2025

Slide 2: Introduction

International investments offer big rewards—but carry real risks
This case focuses on Woolwich Mining's operations in Indonesia
Shows the impact of political instability and legal limitations
Lessons in risk planning, mitigation, and corporate responsibility

Slide 3: Case Overview

Australian company finds large coal deposit in Banten, Indonesia
Signed contract to extract 5 million tonnes of coal annually
Project worth $1.5 billion over 20 years
License unexpectedly cancelled and reassigned
Legal battle follows

Slide 4: Key Participants

Woolwich Mining Co. (Australia)
Indonesian Government
Maya Harris & Liam Colston: Risk Analysts
Lee Ngyuen: Project Manager
ICSID (International Centre for Settlement of Investment Disputes)

Slide 5: Risk Environment in Indonesia

Weak political stability and high corruption index
Legal uncertainty and rapid policy shifts
Medium-high risk of expropriation
Complex regulations in mining sector
Bureaucratic barriers for foreign firms

Slide 6: Identified Risks & Suggestions

Potential political shifts and regulatory challenges
Risk of non-renewal or termination of licenses
Weak legal protections for foreign entities
Analysts advised insurance, legal review, and stakeholder engagement

Slide 7: Project Execution Phase

Licenses and permits were reviewed and renewed
Legal compliance ensured with HR and local laws
Political risk insurance considered
Ongoing communication with government contacts
Limited team and administrative delays

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Slide 8: Major Setback

New government revoked Woolwich’s license, citing expiry
Documentation confirmed license was valid
Local courts rejected Woolwich’s case
Matter taken to international arbitration

Slide 9: What Went Wrong?

Mitigation strategies not fully enforced
Lack of legal leverage in host country
Under-resourced implementation team
Political risk underestimated
Failure to protect against expropriation

Slide 10: Learning Outcomes

Businesses must prepare for government interference
Enforceable contracts with arbitration clauses are critical
Political risk insurance can reduce exposure
Strong legal and local partnerships are essential
Risks must be actively managed—not just documented

Slide 11: Summary

Woolwich’s case is a warning for companies operating abroad
A strong risk analysis means little without proper execution
Governments can change, and so can deals
International business needs both strategy and safeguards

Slide 12: Thank You

Thank you for your time
Open to any questions or feedback
Risk management is a vital tool in global operations