Newmont told to take care of local people and the environment

Monday, June 19 2000 - 03:45 AM WIB

At the grand opening of PT Newmont Nusa Tenggara's (NNT) gold mining operation in Sumbawa Island on Saturday, government officials told the company to take care of local people and the environment to avoid conflicts with local people, the government and development activists.

On hand at the grand opening included Director General of General Mining Surna Tjahja Djajadiningrat, West Nusa Tenggara Governor Harun Al Rasyid and Sumbawa Regent H. Latief Madjid.

Surna reminded the company that its existence in Sumbawa must be maintained so that its presence there would benefit local people, and it should progress together with the people. "Just like a milking cow, don't milk the cow until its milk dries, but the cow must be taken care of, so that its milk continues flowing."

Harun shared Surna's suggestion that NNT continue with its social mission. To improve its social service and its operational standards, Harun called on the formation of an independent commission to monitor and control the company's operation. He suggested that the commission be comprised of people from all walks of life, including geology and environmental experts.

Meanwhile, NNT spokeswoman Iradati Fuad said the company had paid a royalty of at least Rp 25 billion to the government. The payment covered royalties for the first and second quarters of this year. (NNT had been producing since October, 1999.)

At the grand opening of its mine, NNT also extended symbolically a donation of Rp 1 billion to local administrations. Of the Rp 1 billion donation, Rp 500 million is given to two universities, namely Samawa and Mataram universities and the other Rp 500 million is for the renovation of various schools in local areas.

NNT president Tom Enos said the company had been involved in various community development programs, including the eradication of malaria. In addition, NNT had provided employment opportunities for local people.

The company had involved 14,000 people during the first stage of construction in the period of 1992 through 1999. Currently, the company employs 3,342 people, of which 1,884 are locals and 164 expatriates. (*)

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