Govt insists out of court deal in Newmont dispute

Minister of Mines and Energy Susilo Bambang Yudhoyono emphasized on Thursday that the tax dispute between gold mining company PT Newmont Minahasa Raya and the Minahasa regency in North Sulawesi should be resolved through an out of court settlement.

He called on the regency administration to stop pursing its litigation efforts against the company and solve the dispute out of court.

Bambang said a coordinating team comprised of officials from the Ministry of Mines and Energy, the Ministry of Home Affairs, the North Sulawesi provincial and the Minahasa regency administrations, as well as from Newmont, were now engaged in discussions in order to resolve their dispute.

The regency last year filed a lawsuit against Newmont in the Tondano District Court following Newmont's refusal to pay C-class taxes, levied for the exploitation of industrial minerals and building materials. The regency demanded Rp 61 billion (US$8.4 million) in overdue taxes.

Newmont, which said the taxes were not included in the contract of work (COW) it had signed with the government, lost thelegal battle and appealed to the higher court.

The Tondano court issued in January a temporary ruling to bar the company from operating its gold mine until the higher court completes the hearing of the case.

Unconfirmed report said the Manado High Court has ruled in favor of the Minahasa regency and backed the district court verdict. (*)