PRESS RELEASE - Ex-landowners block PT Newmont Minahasa Raya Mine

Manado, North Sulawesi, 27 October 2000: The management of PT Newmont Minahasa Raya (PT NMR) announced today that it had been forced to close mine operations for the forth time this year due to continuing dispute with a handful of ex-landowners. Late last night, a group of fifteen (15) people entered the mine operations area, forcing the company to suspend operations for fear of the ex-landowners safety. The operations officially were halted at 7:00 am this morning.

"The situation here is extremely frustrating because this handful of claimants is in no way reflective of the perception of the other ex-landowners," commented Richard Ness, President Director. "From nearly four hundred land purchase cases, only a dozen have made any claim whatsoever that the process was unfair. Our extensive review, based on thousands of pages of documents, has yet to turn up any evidence of wrong-doing or unfair treatment, price or conditions of sale," said Ness.

The company said that it had been informed by the Police that arrests will be made, as the protestors have been warned by the Regional Government and the Police on at least three occasions that actions which result in the closure of the mine were illegal.

"Four times this same group has resorted to breaking the law and infringing on the rights of the company and community; We have asked the group to remain within the law in their protest activities about this case and to pursue the issue through the legal system, but they have refused to do so. We have turned the situation over to the Police in order to have the laws of Indonesia enforced," commented Ness. "Hopefully, things will be resolved peacefully according to the law and illegal actions such as these will not negatively affect the economy and investment climate in North Sulawesi," he said.

Contact: Manado Office: Tri Harjono (0431 - 851350); Jakarta Office : Iyo Salim (572-1354 ext. 44011), Edward Pressman (572-1354 ext. 44285) (*)