Newmont to stand trial in Indonesia

The world's biggest gold miner will stand trial on charges of dumping mercury and arsenic-laced pollutants into an Indonesian bay, after a panel of judges on Tuesday rejected a request by Newmont Mining Corp. to drop the case.

American Richard Ness, the president director of Newmont's local subsidiary, faces up to 10 years in prison and a fine of $68,000 if convicted, The Associated Press reported.

"The trial will continue," said presiding Judge Ridwan S. Damanik, who was satisfied with the prosecutors' indictment, saying they "fulfilled all legal requirements."

Indonesia alleges that Newmont violated environmental laws by dumping millions of tons of pollutants into the Buyat Bay on Sulawesi island, allegedly causing villagers to develop skin diseases and other illnesses.

The Denver-based company argued that the police investigation and the indictment were flawed and that there was no evidence villagers became ill.

"I am very disappointed with the judges' decision," said Ness, 56, adding that if the court had followed "proper legal procedures" the case would have been thrown out. Lawyers will appeal the ruling, he said. Ness said he also might seek international arbitration in the case.

Damanik said the trial would resume Oct. 7.

The trial is being closely watched by foreign investors already anxious about the country's weak legal system. Environmentalists, meanwhile, are eager to see if the cash-strapped government will punish a multinational mining company for the first time in recent memory. (*)