Newmont to sue police for detention

Newmont Mining Corp., the world's biggest gold producer, this week will file a lawsuit against Indonesia's police for detention of five Newmont executives on pollution allegations that the company said is unlawful.

The company's lawyer in Indonesia, Luthfi Yazid, said Thursday in a phone interview he will file the suit on Oct. 22 at the South Jakarta Civil Court to obtain the release of the employees.

"Based on the law, any detention on environmental-related cases requires a joint letter signed by the attorney general, police chief and the environmental minister," Yazid was quoted by Bloomberg as saying. "The police did not follow this procedure," he said.

Indonesia's police have detained five Newmont executives for almost a month on allegations a mine owned by the company caused pollution in Buyat Bay in North Sulawesi. Indonesia's environment minister Nabiel Makarim said on Oct. 19 that a study of rivers near the Newmont mine showed no contamination with mercury or arsenic and pollution in Buyat Bay meets standards.

"This reconfirms that Newmont has been responsible in its mining activities," Kasan Mulyono, a Newmont Jakarta-based spokesman, said in a phone interview. "It also shows that we have told the truth." Newmont has said illegal mining may be responsible for any contamination in the area.

The detention of the executives is based on an investigation by the police forensic department, said National Police spokesman Paiman. Police have evidence and environmental experts to respond to the lawsuit if it goes to court, he said.

Villagers near the mine in Minahasa, North Sulawesi, have filed a $550 million lawsuit against the Denver-based company's Indonesian unit PT Newmont Minahasa Raya, claiming the company dumped mercury from the mine in local waters, causing health problems for residents. (*)