Newmont presents evidences in court
Regency lawyers push high court to decide on suspension ruling
Monday, March 6 2000 - 04:30 AM WIB
Gold mining company Newmont Minahasa Raya presented on Satuday evidences in the Tondano district court to support its position in dispute with the Minahasa regency, Manado Post reported.
The paper said it was the first time the court allowed the company to present evidences to defend itself.
"We believe the evidences presented today will prove that the company had complied with all laws and regulations in Indonesia," Newmont president Richard Ness said.
The evidences include a letter from the Ministry of Mines and Energy Susilo Bambang Yudhoyono dated on Jan 17, 2000 stipulating that overburden is not an object of C-class taxes and the right to suspend Newmont's operation lay with the minister under the chapter 20 point 1 of the contract of work (COW) with Newmont.
Another evidence is a letter dated Feb 4, 2000 sent director general of mining to the All Indonesian Workers Union (SPSI) that all the local taxes demanded by the Minahasa regency from Newmont should be in compliance with the COW.
The letter also said if the C-class tax was imposed on the overburden, all mining companies across the country could stop operation due to financial difficulties since all mining deposits that have economic value were buried under the overburden.
Ness said the evidences were very strong in supporting Newmont's position. Reasonable interpretations of the evidences should lead to the annulment of the lawsuit filed by the Minahasa regency.
He added that the case had troubled the investment climate in the mining sector and would deal a blow to the Indonesian government's efforts to the recover from the economic crisis.
He said the company was continually committed to transparent business practices and following all the existing regulations.
Separately, the paper said, the lawyers representing Minahasa regent Dolfie Tanor, appeared to have lost patience over the fact that head of the Manado district court had yet to decide on the suspension order issued by the Tondano District Court to Newmont.
The district court issued a provisional ruling ordering Newmont to suspend operation on Jan. 5 this year, but under the existing regulation, the ruling had to be approved by head of the provincial high court for implementation.
The regency's lawyers Jerry Pattilima and Rico Pandeiroth urged the head of the high court to soon make a decision on the ruling.
"If the provisional ruling is rejected, what is the reason? If it is accepted, what is the reason?" Patillima said.
He said the Minahasa regency had r sent a letter to the head of the high court questioning about the follow-up of the ruling.
Pattilima denied speculations that the high court had delayed making a decision due to an intervention by "outsiders"
"Minister of Mines and Energy said in recent meeting in Jakarta that he would not take sides with any parties. He even swore that he had no connection with Newmont," Pattilima said. (*)