Newmont's gold mining sites in N. Sulawesi contested

Tuesday, October 10 2000 - 04:00 AM WIB

Gold mining sites in Minahasa and Bolaang Mongondow districts, North Sulawesi, currently being exploited by PT Newmont of the United States become the target of a lawsuit from PT Ergete Sumber against PT Ara Maurebo.

According to Ergete's lawyer Nicolas Besi, Ergete had filed the lawsuit with the Kotamobagu (Bolaang Mongondow) District Court and demanded Ara Maurebo to pay the former Rp 612 billion for failure to meet the agreement between both parties.

Besi, who is also a director at the Sanobar Legal Aid Institute, said that Ergete filed the lawsuit because Ara Maurebo failed to pay a compensation to Ergete since 1985 for the latter's service in processing mining licenses for the gold mining sites.

The gold mining areas that Ergete claimed to be their mining concession were those with initial numbers of D.U. 242 and D.U. 246, located in Minahasa and Bolaang Mondondow respectively.

The two sites are currently mined by Newmont Minahasa Raya and Newmont Bolaang Mongondow respectively. Both contractors have started their gold production from the sites.

According to Besi, the two sites belonged to Ergete that then entrusted the sites to PT Ara Maurebo, that later transferred them to Newmont.

"Because of Yusuf Merukh's move, Ergete suffers losses that amount to Rp 612 billion if they are calculated since 1985," Besi said, referring to the president of Ara Mauredo. Ergete itself is led by Sunowo Tiraada. (*)

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