INDONESIA: An Indonesian court says Newmont Mining Corp. and its president are not guilty in a pollution case

Record ID: 790560

  • Title: INDONESIA: An Indonesian court says Newmont Mining Corp. and its president are not guilty in a pollution case
  • Date: 24th April 2007
  • Summary: PANEL OF JUDGE WALKING INTO COURT ROOM DEFENDANT PRESIDENT DIRECTOR OF NEWMONT MINAHASA RAYA RICHARD NESS ENTERING COURT SESSION VARIOUS OF COURT SESSION IN PROGRESS PRESIDING JUDGE RIDWAN DAMANIK VARIOUS OF AUDIENCE NESS SITTING NEXT TO TRANSLATOR WIDE OF COURT
  • Embargoed: 9th May 2007 13:00
  • Keywords:
  • Location: Indonesia
  • Country: Indonesia
  • Topics: Crime / Law Enforcement,Environment / Natural World
  • Reuters ID: LVA4R6EF3K4DD6H4GLZWUZKVVKGC
  • Story Text: An Indonesian court on Tuesday (April 24) clears the local unit of Newmont Mining Corp. and the unit's American president of dumping toxic waste into a bay near a gold mine in North Sulawesi and making people sick. An Indonesian court has cleared the local unit of Newmont Mining Corp. and the unit's American president of all charges in a high-profile pollution trial, the chief judge said on Tuesday (April 24).
    The case had been seen as a key test of attitudes towards foreign firms and environmental protection in the country.
    Newmont said last month it might reconsider its investments in Indonesia if its executive was found guilty. Its Indonesian operations contribute to about 6 percent of its worldwide gold sales and 8.5 percent of its reserves, according to its Web site.
    Some environmental protesters in the court walked out in an orderly fashion after the verdict. Earlier, a group of activists banging drums and holding up banners had protested outside the court, which only held around 80 people.
    "I hope this case will not be stopped. We have to learn our lessons. I hope the attorney will appeal," said fisherman Anwar Stirman, one of the protestors outside the court.
    Company president Richard Ness, wearing a dark jacket with a white business shirt and a dark pink tie, initially remained calm, but later shed tears as he walked out of the court with his two sons Eric and Bryan.
    Ness later thanked the judges in comments to reporters, But a prosecutor contested the result.
    Test results on the bay's water and Newmont's tailings by various institutions had come up with different readings.
    A team led by Indonesia's Environment Ministry said in 2004 that arsenic and mercury content in tailings dumped by Newmont in Buyat Bay from its now-defunct gold mine had contaminated sediment and entered the food chain.
    But other tests failed to find abnormal pollution levels.
    Analysts had said a defeat for Newmont would have deterred investors from putting their money in the mining sector, which has not seen fresh investment for years.
    But the verdict will be viewed as a defeat for some activists who wanted to send a message that Indonesia is serious about enforcing laws to protect a rapidly degrading environment.
    In November, the prosecutor asked for Ness to receive a three-year jail term and a 500 million rupiah ($55,000) fine, and the company to be fined 1 billion rupiah. The maximum sentence Ness could have faced under Indonesian law was 10 years.
    Newmont and Ness had denied the charges.
    The sector has been struggling to attract new foreign money as legal uncertainty, rampant graft and red-tape have steered foreign investors away from Indonesia.
    Last year, Newmont, which is based in Denver, settled a civil case without admitting wrongdoing and agreed to pay $30 million to an environmental foundation in North Sulawesi.
    Hundreds of traditional miners are now operating in the defunct Newmont site in Buyat Bay.
    "I have been doing this job since 15 years ago. The closure of Newmont operation does not affect our operation" said Jantje Liwang, one of the miners in Buyat.
    Newmont had been disposing of 2,000 tons of tailings every day while traditional miners throw away only 20 to 40 grams of tailings per day.
    "In one day I can get 100 grams of gold and the best I got is 500 grams," Liwang says.
    Mining companies are often accused of damaging the environment due to the accumulation of their mine waste over the years, environment activists have said.
    The local government has ordered Newmont to restore the environment and the mining company began carrying out a coastline reclamation project in the bay, planting teakwood and mahogany trees.
    "Basically we are completing this area. We already planted 200 hectares and now we continue to maintain the area until the next two years," said John Goh, reclamation supervisor for Newmont.
    Indonesia has some of the world's largest deposits of gold, tin, nickel and copper, and some of the world's top mining firms such as Freeport-McMoran Copper & Gold and PT International Nickel Indonesia have operations in the country.

    ENDS
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