735 NHM Employees Await Severance from Newcrest Mining Limited

Newcrest Mining Limited, an Australian gold and copper mining company now owned by Newmont Corporation, has been urged to fulfil its obligation to pay severance to employees.

Previously, 735 employees filed a lawsuit against Newcrest Mining Limited through the Ternate District Court on 13 November 2023. The lawsuit resulted in Decision Number 5/Pdt.Sus-PHI/2023/PN Tte, which holds the company accountable for the rights of all workers.

At the Supreme Court level, Decision Number 734 K/Pdt.Sus-PHI/2024 was issued, upholding the Ternate District Court ruling.

Trubus Rahardiansah, a public policy expert from Trisakti University, stated that when a decision is consistently upheld from the first instance to the Supreme Court, it can be considered purely impartial, with no interference from vested interests. Trubus said the final and consistent Supreme Court ruling must be respected.

“First, foreign investors must comply with the applicable laws in Indonesia. That is the principle,” he said in his statement on Friday (17/4/2026).

He noted that one of the final industrial relations dispute rulings is the case between 735 former employees of PT Nusa Halmahera Minerals (NHM) and Newcrest Mining Limited (NM Ltd).

The case began when 735 NHM employees sued Newcrest Mining Limited for failing to fulfil their severance rights following the acquisition, despite provisions in Article 67 of the 2018-2020 Collective Labour Agreement (PKB) of PT NHM.

However, the Supreme Court has upheld the Ternate Industrial Relations District Court ruling, stating that the company is obligated to pay the workers’ rights. At least 15 cases have been upheld at the Supreme Court level.

Trubus explained that under Indonesia’s legal system, a change in company ownership does not automatically erase obligations to workers. Although foreign investors often receive special treatment in practice, once a court ruling is final, there is no reason to delay execution.

“Second, even though there is international law, when a dispute or conflict occurs in Indonesia, multinational companies remain obligated to comply with domestic laws where they operate, which in this case are the laws of Indonesia,” he said.

Iksan Maujud, the legal representative of the Workers’ Union, stated that they will continue to fight for the execution of this ruling. The controversy has been ongoing since 2020. However, to date, the employees’ rights have not been fulfilled despite the final legal decision.

“In March 2020, there was a divestment and acquisition of shares from PT Indotan Halmahera Bangkit to Newcrest Mining Limited regarding NHM shares. If this occurs, the employees’ rights are already regulated in the Collective Labour Agreement (PKB) document, particularly in Article 67, which states approximately: ‘If or when there is divestment, acquisition, merger, or change in legal entity, the company must settle the workers’ rights’. The employees’ rights need to be paid before the transaction takes effect,” said Iksan.

He explained that various steps have been taken to ensure the employees’ rights are fulfilled, from mediation to legal channels. Even in the initial process, he said the employees’ attempts to mediate with Newcrest Mining Limited received no positive response.

According to him, this seems to disregard the fate of the 735 employees who have worked for the company for dozens or even tens of years extracting gold from the soil of Halmahera. He said Newcrest Mining Limited ignored the mediation efforts made by the employees.

“It was simply ignored during the initial mediation phase, so the employees sent letters several times. But there was no response,” he said.

Meanwhile, Rusli Abdullah Gailea, Chairman of the PUK SPKEP SPSI PT NHM Union, who has worked at NHM for 20 years as a Mill Operator, conveyed that the workers have long attempted dialogue.

“We contacted the representative of Newcrest Mining Ltd - Newmont Corporation, Nat Adams, who currently serves as Global Government Relations Director, but it was never appreciated or accepted by him, even though we have evidence of the Makassar Agreement where he was present at the meeting and witnessed the signing along with the government,” said Rusli.

“Although we have tried to communicate with Newcrest Mining Limited, headquartered in Melbourne, Australia, there is no visible effort or responsibility from Newcrest Mining Limited regarding its obligations to employees or other parties,” he added.

He hopes the company will appreciate the dedication of the employees who have worked there for years. Moreover, a ruling with final legal force has now been issued and must be implemented by the company.

“We are people who have dedicated ourselves to Newcrest Mining Limited for 20 years but are not appreciated, especially with claims from other parties,” he said.

Rudi Pareta, Chairman of the F-GSBM PT NHM Union, added that severance pay is the workers’ hope for the future. Many workers hope their rights will be given soon.

“Many of my fellow employees hope that the severance can be used to start small businesses, support family needs, or fund their children’s education,” he said.

Furthermore, the workers’ union also questions the acquisition process of Newcrest Mining by Newmont Corporation, particularly the alleged lack of thorough review of Newcrest’s operational track record before the transaction. They also highlighted the limited communication channels opened by the company for dialogue with workers post-acquisition.

“It should also be known how great the profits of Newcrest are, but Newcrest’s obligations to the surrounding mining community are not respected, and the people remain suffering and poor,” he explained.

The workers’ union also mentioned the obligation to pay employee rights, with an estimated severance value of around US$35 million or equivalent to