Jakarta official clarifies Newmont case

A senior official at the Ministry of Mines and Energy said on Friday that in the contract of work between gold and copper mining firm PT Newmont Minahasa Raya (NMR) and the government, it was not stipulated that the disputed "over burden" is included in the C-class mining materials that's subject to local government tax.

"The over burden of Newmont Minahasa is also not commercialized. It's a mud soil which is needed to refill the ex-mining site later on," said Surna T. Djajadiningrat.

Surna's statement help clarifies recent dispute between the company and the local Minahasa government.

The local Minahasa regency in North Sulawesi filed a lawsuit against NMR on charges that the company had never paid the so-called C-class mining tax. The local Tondano district court then ruled that NMR be closed down. But the decision drew strong criticism including from industry players and the Minister of Mines and Energy Susilo Bambang Yudhoyono, who said that the decision to close a mining operation was in the hands of his ministry, not the local government.

But the higher court had ruled the Tondano court to annul its decision.(*)