Newmont evacuates women, children and nonessentials

Ratatotok, North Sulawesi, June 29, 2000: PT Newmont Minahasa Raya (PT NMR) announced today that it was evacuating women, children and nonessential staff members from its mine site in Ratatotok, North Sulawesi due to the situation there. A road blockade of the facility by ex-landowners and others, which unlike many mining operations in Indonesia has no helicopter or fixed wing air support, has been in place since Monday. The company stated that because of its growing concerns for the safety of its personnel that it took the decision to evacuate staff and dependents.

"Some very irresponsible people have been guarding the roadblock and have been physically threatening our personnel, they have been drinking alcohol every night and generally have sought to strike fear into the people who live and work on this site," said Paul Lahti, General Manager of PT NMR.

Lahti went on to say that the people who have been supporting this action have created a climate of fear and intimidation in the village. "We believe that the vast majority of the village supports the company, but in spite of attempts to peacefully resolve this problem the instigators are using threats of physical harm to keep others silent," commented Lahti.

From 1989 to 1994, the company paid healthy compensation packages to some 400 landowners in the area around the mine, paying five times the market rate at the time and using an additional compensation package for productive gardens. Several ex-landowners have now asked for more money.

"It's as if I went to the market and bought a fish, went home, cooked it and ate it, then the fish seller came to me five years later and said you owe me more money for that fish I sold you. It's illogical and not fair," said Lahti.

The company also expressed disappointment in the noted NGO Lembaga Bantuan Hukum (LBH) for failing to play a mediating role in the dispute.

"We hoped that LBH would play a role as a alternative dispute mediator in this case but they seem uninterested in seeking a resolution," noted Lahti. "We're looking to the Government of Indonesia to peacefully resolve this issue while upholding the rule of law. The land settlement procedures were followed carefully by us and we have literally thousands of pages of documents to support our position," said Lahti, "but clearly this matter needs to be resolved by the government peacefully and within the law."

The company also said that mining and milling operations remain closed. (*)

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Tri Harjono, Ed Pressman or Iyo Salim