Newmont to invest US$104 million more in Indonesia
Monday, April 4 2005 - 03:02 AM WIB
The United States-based Newmont Corporation will increase its investment in Indonesia by at least US$104 million within the next few years despite the government's litigation against the company's subsidiary in North Sulawesi, Bisnis Indonesia reported on Monday.
Robert Gallaher, the vice president of Newmont Indonesia Limited, said in Jakarta last week that the legal action against PT Newmont Minahasa Raya would not affect the company's future investment in the country.
"We will not change our investment (plan) only because of the government's litigation. But we have to settle the problem as soon as possible," he was quoted as saying by the daily.
Gallagher said that about $90 million of the planned investment would be used to further develop the Batu Hujau gold mine in Sumbawa, West Nusa Tenggara , about $5 million to finance new exploration in Sumbawa, and another $9 million to develop the Martabe mine in North Sulawesi.
The company has three affiliated companies in Indonesia including PT Newmont Minahasa Raya in North Sulawesi, PT Newmont Nusa Tenggara in West Nusa Tenggara and PT Horas Nauli in North Sumatra.
"Indonesia remains an important priority in Newmont's global operations, in addition to the United States, Peru and Australia" he said. At present Newmont operates 17 mines in the four countries.
Newmont Minahasa Raya has been accused of polluting the Buyat Bay, near its mining site in North Sulawesi. The government's tests indicated the arsenic level in the seabed were 100 times higher at the company's waste dumping site than in other parts of the bay.
The company's six executives are currently under a court trial for their alleged role in the in the alleged pollution. The Office of the State Minister of Environment has also filed a different lawsuit against the company, seeking a total of US$133.6 million in compensation from the company for the same charge.
Newmont stopped its mining two years due to depletion of the gold reserves, but it kept processing the ore until Aug. 24 when the mine was permanently closed. The company dumped its mineral waste into the seabed in the Buyat bay. (*)