Newmont sets good example for oil and mining contractors: Purnomo

Minister of Mines and Mineral Resources Purnomo Yusgiantoro on Friday called on oil and mining contractors to follow in the footsteps of PT Newmont Nusa Tenggara which had given adequate attention to the development of people in West Nusa Tenggara where it mines gold.

Speaking in a workshop on community development in Bandung, the minister said nobody had questioned the contribution of the foreign joint venture to the welfare of people on the West Nusa Tenggara island of Sumbawa. He did not elaborate.

Purnomo did not comment on the complaints aired late last month by members of West Nusa Tenggara legislative council that Newmont had dumped about 110,000 tons of mineral waste or tailings into the nearby sea without permit.

Attending the Bandung workshop included executives of oil and mining giants like PT Caltex Pacific Indonesia, PT ExxonMobil Indonesia and PT Devon Energy. State oil and gas company Pertamina organized the seminar, together with oil and mining investors.

Purnomo admitted that the oil and mining industry requires large capital and high technology, and this could cause investors neglect the importance of giving attention to the welfare of the local people.

He requested investors in the oil and mining sector to submit to the government their views and ideas about the best methods of contributing to community welfare.

The new law on oil and gas, approved by the House of Representatives on Tuesday and has yet to be ratified by the President, obliges oil and mining production sharing contracts to set aside certain amounts of their funds for the development of the community in their operation areas.

Some investors had complained that that obligation would increase their financial burdens. (godang/leo)