Govt regrets Newmont case

JAKARTA (JP): A top official of the Ministry of Mines and Energy expressed concerns on Tuesday over the closure order issued by a district court in North Sulawesi to gold mining company Newmont Minahasa Raya.

Acting Director General of Mining Suryantoro said the ministry would seek to find an out-of-court settlement for the dispute between the company and the Minahasa regency so that the company could continue operations.

"We are really concerned with the suit filed by the Minahasa regency against the company. If Newmont's operation is closed, that will amount to a violation by the government of the contract of work awarded to the company," Suryantoro said on the sidelines of the seminar on geothermal power.

"Thus, we'll try to resolve the dispute out of court," he was quoted by Antara as saying.

The Tondano District Court issued an injunction on Saturday to temporarily stop the company's activities in Ratatotok, Minahasa regency, North Sulawesi until the court finishes its hearings of the suit filed by the Minahasa regency against Newmont.

The suit was filed following Newmont's refusal to pay a local tax to the regency. (jsk)