Government finally files lawsuit against Newmont
Saturday, March 12 2005 - 03:44 AM WIB
In the lawsuit, the office of the state minister of environment sought for up to US$117 million in compensation from the North Sulawesi-based gold mine company for the damages on the environment. The office also demanded Newmont pay another Rp 150 billion for the damages it caused on its reputation.
In the lawsuit, the environmental office accused the company's undersea mining waste disposal in the Buyat bay, located near its mining site in North Sulawesi, had caused a serious problem not only on the environment but also the health and the living condition of the people.
According to the government's test, the underground mining disposal had seriously contaminated the seawater around the bay. The arsenic level in the seawater had reached far higher than the maximum standard set by the government.
Earlier, the ministry of energy and mineral resources said that the lawsuit against Newmont could further worsen the investment climate in the country's mining sector.
"It is also quite possible that Newmont will take the Indonesian government to an international arbitration panel because the company has carried out its mining in accordance with its contract of works," Director General of Mineral Resources Simon F. Sembiring said last week.
Meanwhile Newmont Minahasa Raya reported that it had allocated between US$12 million and $15 million to finance various projects related to the company's mining disclosure program. Of the total, $1.5 million would be used to finance the company's community development programs.
Newmont has effectively stopped its mining activities due to the depletion of gold reserves but the company would continue to operate in the area to prepare its rehabilitation program which will be carried out until 2007. (*)