PT Newmont Minahasa Raya announced the US$500,000 payment
Press release from PT. Newmont Minahasa Raya
Tuesday, May 9 2000 - 06:00 AM WIB
PT Newmont Minahasa Raya (PTNMR) today announced that the company has fulfilled its obligation to pay the US$500,000 tax on C-class to the regional government of Minahasa. As instructed by Bupati of Minahasa, Dolfie Tanor in a letter to PTNMR (Letter no. 72/B.Min/V-2000, dated May 5, 2000), the payment deposit was made to Bank SULUT branch Tondano, account no 200.01202.00001.
"We are very satisfied that we can fulfill our payment obligation as planned and we'd like to thank various parties such as local government, related government's office and central government for their support and cooperation," said Richard Ness, President Director of PTNMR.
The payment was made on May 5, 2000, following the court decision this week to dismiss the lawsuit on C-class taxation against the company after both parties reached a settlement on the outstanding taxes owed last month.
"We hope that the dismissal marks the beginning of healthy dialogues and communication between the regional government and the company in years to come, " added Ness.
At issue is a suit filed by the Bupati in September of last year. The suit, which was for a total of US$8.2 million, alleged the company owed US$2.8 million n taxes on "overburden" used by the mine, as well as a variety of penalties and compensation. The legal advisors to the Bupati argued that the mine used the "overburden" which is topsoil and rock removed in order to get access to the ore that has gold in it - when it was moved and put into a dump.
But PTNMR said the overburden had no economic value and was being moved only to access the ore. It said the overburden would later be moved back as part of the company's program to return the mined areas to its original state.
At a meeting with the Department of Mines and Energy last month, Bupati Dolfie Tanor said he would withdraw the suit providing PTNMR complied with the finding of the department's verification team and paid taxes and fines it owed on C-class material it used for community roads, amounting US$500,000.
The company agreed to pay the taxes and fines it owed on materials an independent audit showed it had used. At the same time the Regency agreed that the overburden or waste rock will not be taxed unless PTNMR sells it as defined by the Contract of Work. The same is true for ground water. (*)