Newmont denies polluting sea: Report
Wednesday, April 11 2001 - 04:00 AM WIB
Indonesia's PT Newmont Nusa Tenggara Tuesday denied accusations that tailing from its Batu Hijau copper and gold mining operations pollute the sea in the Indian Ocean, according to a report.
The operations' disposal system has been categorically proven that it poses no harm to the environment, and is permitted in the U.S. and Canada, spokesman Edward Pressman was quoted by Dow Jones Newswires as saying.
Environmental groups in Indonesia have blamed the project as polluting the sea by discharging "poisonous tailing" into the sea.
The company, 45%-owned by U.S-based Newmont Mining Corp Japan's Sumitmo Corp. holds 35% in the project, while PT Pukuafu Indah which is controlled by local businessman Jusuf Merukh holds the remaining 20%.
The company discharges 110,000 metric tons of ground rocks each day, from which copper concentrates have been extracted into the sea in the Indian ocean.
"The ground rocks are not poisonous or toxic," as accused, Pressman said, adding the disposal area and method are carefully chosen for the mining location, which is on the isolated Sumbawa Island.
According to Pressman, tailing is piped out one kilometer away offshore, then disposed from the depth of 150 meters into an undersea canyon which is 4,000 meters deep.
The area has no strong current, which helps prevent distribution of tailing to other parts of the ocean, he added.
Computer modeling and other scientific tests have shown the disposal method wouldn't harm the environment throughout the mine life of 20 to 25 years, Pressman said.
The Batu Hijau project started in 1999.
The mine's proven reserves include 11.8 million ounces of gold and 10.5 billion pounds of copper. Concentrates which contain both copper and gold are shipped to refineries in Japan.
The company expects to produce 600 million pounds of copper and 400,000 ounces of gold from the mine in 2001, Pressman said.
In 2000, the mine yielded 495 million pounds of copper and 280,000 ounces of gold.
Total cash cost of production for gold also increased to $133 an ounce in 2000 from $103 in 1999, partly on currency fluctuation, Pressman said.
The company supplies its gold production to PT Aneka Tambang. (*)