Stories behind the deal between Newmont and Minahasa regent

Minahasa (North Sulawesi) regent Dolfi Tanor looked tired when leaving the Ministry of Mines and Energy. He left the ministry in one car with PT Newmont Minahasa Raya president Richard Ness after meeting Minister of Mines and Energy Susilo Bambang Yudhoyono on Wednesday, April 19.

Before that, it was unbelievable to see Tanor in one car with Ness. The two fought in court over a tax dispute. And Tanor won the first round of the court dispute after the Tondano district court ordered Newmont to stop its mining operation until its dispute with the Minahasa regency was heard and settled. But on that day, Tanor and Ness reached an agreement.

Ness, in the name of Newmont, agreed to pay the Minahasa regency US$500,000 for the disputed tax - far below that demanded by the Minahasa regency of around $3 million. But Newmont also agreed to set aside US$1.5 million to establish a social foundation and another US$1 million for community development in a three-year period.

In return, Tanor would withdraw the Minahasa administration's legal suit against Newmount.

Both Tanor and Ness described it as a win-win solution.

The agreement is actually close to that proposed by Newmont before Tanor sued the company. Then, why Tanor called it a win-win solution. Some sources said that Tanor was under pressure from the central government to accept the decision. But Tanor himself denied that he was pressured to accept the agreement. And the government was under pressure from Newmont and other international investors and financial institutions to intervene in the case.

But there is another version behind the agreement that is Tanor has his own weaknesses in his fight against Newmont. Tanor had a private interest in the fight, which had become a national spotlight. This version was revealed by Newmount's deputy chief commissioner Yusuf Merukh.

Yusuf said Tanor hosted a meeting with Newmont representatives on April 7 at his residence. At that meeting they agreed to settle their case, with Newmont promising to pay the Minahasa regency the disputed tax, and to set aside $1.5 million to establish a foundation. But Tanor asked the $1.5 million be transferred to his private account. Newmont rejected Tanor's request. And there was a deadlock.

The next day, on Saturday April 8, the Tondano district court ordered Newmont to stop its mining activities until the case was heard and decided by the court, Yusuf said.

Yusuf said he suspected that Tanor colluded with Tondano judges who handled the case, and therefore he suggested that the central government form a special team to investigate the case. He also suggested that Tondao's council impeach Tanor.

Yusuf also said that he was considering of suing Tanor and Tondano judges for such a ploy. He added that he was also ready to be sued by Tanor and whoever felt offended by his statement.

As expected, Tanor denied Yusuf's allegation, and said, "What I'm doing is for the people of Minahasa." (*)