PRESS RELEASE: Demo at PTNNT ends peacefully

Wednesday, March 3 2004 - 09:11 AM WIB

West Sumbawa, March 3, 2004 -- A demonstration on 1 Mar 2004 protesting the extension of PT Prasmanindo Boga Utama?s (PBU) catering and janitorial services contract with PT Newmont Nusa Tenggara (PTNNT) and the local supply system implemented by PBU ended peacefully at 1530. This illegal demonstration, comprised of less than 50 individuals representing various factions. Operations and production continued without interruption.

?After discussing the situation with representatives of the West Sumbawa Kabupaten, PTPBU and PTNNT, the protesters agreed to end their action and continue dialogue in a meeting chaired by the local government,? said Robert Humberson, Senior Manager External relations.

The demonstration began on Monday (1/3) at 05:00 at Benete gate. During the action, protesters blocked PTNNT?s gates preventing vehicles from entering or leaving the mine area. Although they allowed individuals to walk into the mine area, some employees were reluctant to pass through the demonstrators. This did not affect operations.

?Unfortunately, even though discussions were continuing with various parties to resolve issues with PTPBU?s purchasing system, a small group decided to conduct a demonstration in violation of existing laws and regulations. We are always open to discussions and welcome input from all parties. We encourage groups to work with us to resolve issues without resorting to illegal acts that undermine the system and do more harm than good. We would like to thank Pemkab Sumbawa Barat, the Camats of Sekongkang and Jereweh and the KAPOLSEC and KAPOLRES of Sumbawa for their support in resolving the demonstration. We would also like to thank the local community for supporting Batu Hijau,? said Robert Humberson.

Commitment to local business development

The protesters? two main concerns were the extension of PTPBU?s contract and the local supply system used by PTPBU. Currently, PTPBU purchases supplies through a local business consortium as agreed to and facilitated by the local government. Other suppliers see this system as too restrictive and demand that the door be opened to suppliers who are not members of the consortium.

?Although PTPBU has agreed to modify purchase procedures to more closely mirror PTNNT?s Local Business Initiative purchase system, the issue of purchasing from companies not in the consortium remains open. Further meetings will include representatives of the consortium so that their interests are properly considered. As noted by the government representative, Tholib Abdullah, PTNNT and PTPBU have legally extended their agreement between two parties therefore that issue is not open for discussion,? said Robert Humberson.

PTNNT expects contractors, including PTPBU, to meet or exceed PTNNT requirements for hiring local employees and utilizing local businesses. ?Currently 84% of PTPBU employees are local. Additionally, PTPBU has purchased over US$5 million in supplies and goods from local businesses over the last three years,? said Robert Humberson.

?We are committed to nurturing local business by opening opportunities for local business to provide goods and services for PTNNT. This investment will have multiplier effect , boost economic growth and provide a strong basis for sustainable development. Through community development programs, we also encourage and train local businesses and farmers to improve their capabilities and competitiveness,? said Robert Humberson.(end of release)

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