Court drops civil suit against Newmont

The South Jakarta District Court on Tuesday dropped a civil suit filed by the Indonesian government against Newmont Mining Corp.'s local subsidiary accusing it of pollution, saying the case should be taken to international arbitration.

"This court has no authority to try the case filed by the government over alleged environmental pollution by Newmont," said judge Sudarto. "Under the contract, such a dispute should be settled through conciliation or be brought to international arbitration."

The government has filed suit against PT Newmont Minahasa Raya (NMR), accusing the firm of polluting Buyat Bay in North Sulawesi with its tailings. Local residents, supported by non-governmental organizations, have claimed that they had suffered various diseases due to the contaminated water of Buyat Bay.

Aside from the civil suit, the government has also filed a criminal suit against three executives of the company, including president director Richard Ness. The criminal trial of the three are now in progress at the Manado District Court in North Sulawesi.

NMR welcomes the decision.

"We are very pleased that the judges acknolwedged our existence and decided to drop the dispute. This is the victory of all parties," company spokesman Rubi Purnomo told reporters. (Godang)