Newmont disappointed: ex-landowners refused planned discussions

Ratatotok, North Sulawesi, June 26, 2000 -- The management of PT Newmont Minahasa Raya (PT NMR) expressed great disappointment regarding the rejection of discussions by several ex-landowners from Ratatotok. A planned meeting in which the company's management expected to meet with ten representatives of the local people did not occur.

Instead, at approximately 10:00 am, a group of 80 - 100 people from the village, only a small minority of which were actual ex-landowners, demanded that all the people present at the front gate of the facility be involved in the meeting. The company was expecting only ten representatives, and under the advisement of government and security officials at the scene, asked that only the representatives of the group attend the meeting. But the group refused to participate in the meeting in what appeared to be a pre-programmed strategy to reject the meeting.

After rejecting the discussions, the ex-landowners blocked the access road to the project. PT NMR was forced to shut the operation down at that point.

In the meeting, the company was to have explained that an internal investigation of the land compensation program, as requested by the ex-landowners, had not shown any evidence that the company had erred in the compensation program. The company was also to have told the representatives of the group it would be willing to review any allegation of wrongdoing by third parties.

PT NMR General Manager Paul Lahti further explained that the company had gone to great lengths to conduct a fair and open discussion with the ex-landowners. The company had asked the Manado Chapter of the noted legal rights foundation, LBH, to facilitate the meeting in order to ensure that the local people were adequately represented in the meeting. Initially LBH agreed to facilitate the discussions but failed to show up.

"We asked LBH to help facilitate discussions regarding these land issues as we knew they had provided some guidance to the ex-landowners prior to this dispute. We felt that LBH would provide good guidance and legal expertise to the local people and help avoid any potential conflict," said Lahti.

Lahti went on to explain that the company would still like to see LBH from either the local chapter or from the national level, or any other appropriate NGO mediate, so that no further conflict results from today's actions.

"I'm sure there are cynical and manipulative people who would like to see human rights issues arise from this conflict," said Lahti, "but we reject the use of force to resolve this dispute and will continue to ask the civilian government and NGOs to mediate on behalf of the people."

The claims by several ex-landowners regarding land compensation date back to the early 1990's. Of a total of nearly 400 individuals who sold land to the company at that time, some two dozen are now making additional claims against the company. The company says it followed the procedures for compensation and paid five times the market rate for land purchases in the area. In addition, the company said, a very liberal interpretation of regulations on additional compensation for productive gardens allowed for generous payments to be made by the company to the local landowners. (*)

For more information, please contact:

Manado office: Tri Harjono, 0431 851350, ext. 45902

Jakarta Office: Ed Pressman or Iyo Salim, 021 572 1354, ext. 44051