Press Release: Claims regarding Batu Hijau?s negative impacts untrue and misleading
Tuesday, February 3 2004 - 03:18 AM WIB
From the earliest days of exploration, the Batu Hijau project has positively impacted the economy and lifestyle in the areas around the mine. Although the impact during exploration was limited by necessity, even then the project provided a positive inflow of cash, new job opportunities and some training in an area that had been largely underdeveloped. With the discovery and development of the ore body at Batu Hijau, PT Newmont Nusa Tenggara (PTNNT) has become a major economic contributor to Nusa Tenggara Barat (NTB) Province and the major source of revenue and development in western Sumbawa.
Working in partnership with Batu Hijau, the government and people in the project area have been able to improve education, health and income opportunities. Although no one can predict for certain whether or not other exploration projects on Sumbawa will enjoy the success of the Batu Hijau project, people should not be misled by negative comments regarding Batu Hijau?s impact on the local people and environment. It is understandable that there is some misunderstanding and confusion regarding Batu Hijau. For those who want to know the truth, we invite you to visit and meet with the local villagers and tour the mine.
?PTNNT?s commitment to the environment, people and government is immediately apparent. PTNNT currently employs 6,612 employees and contractors, of which more than 60 percent are from NTB Province. The mine in 2003 contributed more than US$211.79 million to the Indonesian economy in taxes, non-taxes, wages, landrent and in-country expenditures. A significant amount of this went to NTB and the mine area providing additional opportunities for infrastructure and community development. These payments include royalties, local purchases, employee wages and community projects,? said Robert Gallagher, President Director PTNNT.
Batu Hijau?s environmental programs are state of the art and meet or exceed Indonesian and international standards. Concurrent reclamation projects are conducted insuring preservation of native species and the mine water management program insures that local water supplies remain as clean as or cleaner than before the mine was opened.
?With current ore reserves, the Batu Hijau project will continue to operate for 25 more years. Additionally we will continue our exploration projects, and if those projects are successful, we will be able to work with other communities to help them benefit as has the area around Batu Hijau,? Gallagher added.
Currently PTNNT is in the early stages of an exploration program at Dodo in Sumbawa.
Although PTNNT has not yet confirmed an economically feasible ore body, we have begun working with local communities in various areas. ?The project employs about 70 persons who are all recruited from 9 local villages.
We also have worked with and developed local suppliers to supply various goods and services for the project. ?We have provided social donation for village infrastructure projects. In addition, we will also provide 1,000 mango seedlings and 500 teak seedlings for each village,? said Gallagher.
Improved prosperity for the long term
Local communities have enjoyed many quality of life improvements since Batu Hijau began operations. Among other things, PTNNT has worked with the government to successfully reduce rates of malaria from a high of over 70 percent to less than 4 percent, to rebuild 9 elementary schools and to construct an intermediate school, a clinic and to assist with the construction of many mosques and other schools.
PTNNT has provided the books for 17 school libraries, scholarships for over 2408 students, advanced training in technical skills for hundreds of local people, and new business opportunities for local businesses that have resulted in purchases of over $1.6 million per year from the local market alone, irrigation for over 700 hectares, potable water for over 10,000 people, improved agricultural techniques and many other programs.
?There have been significant benefits from Newmont?s presence. Many people from our village now work with Newmont. Village infrastructures have much improved. Newmont built us a very good junior high school building,? said H.Mukhlis, head of the Sekongkang Bawah Village.
PTNNT?s contribution to the local community has also been applauded by head of Jereweh sub district, Muhammad Endang Arianto. ?Huge positive changes have taken place since Newmont?s presence. We have received many forms of assistance especially through community development programs,? said Camat Jereweh.
PTNNT?s successful community development programs have been recognized by the Indonesian Government when the Padma Award was presented by President Megawati in 2003. PTNNT?s community programs include infrastructure, education, health, agriculture development and income generation. ?In the past, there were only limited people could complete senior high school. Now with improved income many parents send their children study at universities in Java,? said Syamsul Bahri, an employee from Sekongkang Bawah.(*)