Govt, Newmont seek amicable deal

The Jakarta Post, Jakarta

The government is moving toward closure in the case against U.S. giant Newmont Mining Corp. subsidiary over the alleged pollution of Buyat Bay in Sulawesi with the two parties seeking an out-of- court settlement.

Coordinating Minister for the Economy Aburizal Bakrie said on Friday the government might reduce the US$133.6 million in damages it is seeking from Newmont unit PT Newmont Minahasa Raya (NMR) should both sides strike a deal outside the court.

"We are not going to drop the criminal charges against Newmont, but for the civil lawsuit there is an understanding between us that we should explore ways to settle it out of the court," said Aburizal.

Aburizal was speaking following an overnight meeting between government officials and Newmont executives. Aside from Aburizal, Attorney General Abdul Rahman Saleh was attending the closed-door meeting.

The meeting was seen as another major blow to environmentalists after the Constitutional Court cleared the way on Thursday for mining companies to operate in protected forests.

Abdul Rahman admitted that the meeting was aimed at discussing a settlement of the lawsuit. But he refused to elaborate, asking the press to seek the content of the meeting through Aburizal.

Police named six Newmont executives suspects in the alleged pollution case, but prosecutors in North Sulawesi released five of them, leaving the company CEO Richard Ness the only suspect.

Newmont, which stopped operations last year, is accused of polluting Buyat Bay in North Sulawesi where it dumped its tailings produced by its gold mine near the area. The government also filed a civil lawsuit against the company.

Newmont has denied the accusation but has admitted that it released 17 tons of waste mercury into the air and 16 tons into the water over five years, but said that these releases were well within government regulated standards.

Asked whether the out-of-court settlement was intended to prevent the company from pulling out from the country, Aburizal said it was for the benefit of both sides.

"It is not because we are afraid. We are just concerned about a possible defeat in court. We should also think what will happen if we win," said Aburizal, adding that there would be a series of negotiations in the upcoming weeks.

The government has said the lawsuit was aimed at seeking damages to restore the environment in Buyat Bay and to relocate its residents, while the criminal prosecution was to deter those breaking the law on the environment.

Newmont's director of corporate and business development Robert Humberson refused to comment on the substance of the meeting.

"The process is still under way. But Newmont is hopeful of continuing the negotiations with the government," he said.