Govt shares blame in Buyat Bay case: Alwi

Govt shares blame in Buyat Bay case: Alwi

Fabiola Desy Unidjaja and Tony Hotland, The Jakarta Post, Jakarta

The government may also be blamed for the pollution of Buyat Bay
in North Sulawesi, Coordinating Minister for Social Welfare Alwi
Shihab said on Thursday, one day after he vowed to punish PT
Newmont Minahasa Raya for arsenic contamination in the area.

Alwi said the government had approved Newmont's annual reports
submitted as part of the requirements to have its operating
license extended.

"Maybe there were things that the government could have done
to stop the pollution but didn't do. It is possible that we share
the blame," Alwi said before a meeting with President Susilo
Bambang Yudhoyono at his office on Thursday.

Alwi announced on Wednesday that Newmont, which disposed of
its tailings in Buyat Bay from 1996 to Sept. 30, 2004, had
contaminated the bay with arsenic and that people living in the
area would be relocated.

The minister said on Thursday the government would not point
the finger at Newmont and would allow the ongoing legal process
to determine who was to blame for the pollution.

"What we can say is that we have credible test results that
confirm the level of pollution in the area. But let the court
decide who is guilty for this," Alwi said.

He said further action would be taken by the Office of the
State Minister for the Environment to follow up on the case.

"The test results will be included in the ongoing police
investigation and the environment ministry will decide further
actions," said Alwi, referring to tests by a joint team that
concluded the bay was contaminated with arsenic.

While acknowledging elevated levels of arsenic and mercury in
its tailings sediment, Newmont, which wrapped up its operations
in the area on Sept. 30, has maintained that it adhered to
government regulations and provisions of its environmental impact
analysis in disposing of the tailings.

It also said that both the arsenic and mercury "are in a
stable form that does not affect the water, as shown by several
years of monitoring".

The joint team that conducted the tests also discovered
alleged license breaches during Newmont's operation, including
those relating to toxic waste management, and violations of waste
disposal permission relating to the ocean disposal of mine waste.

House of Representatives Commission VII overseeing energy,
natural resources and the environment voiced its support on
Thursday for the government bringing Newmont to court over the
case.

During a hearing with State Minister for the Environment
Rachmat Witoelar, commission members said they supported the
government's plan to bring criminal and civil charges against the
mining firm, including bringing the case to an international
court of arbitration.

"We fully endorse the enforcement of Law No. 23/1997 (on the
environment) and for the holding of those who committed this
crime responsible for their actions," commission chairman Agusman
Effendy said.

Rachmat said his office would cooperate with the police to
strengthen the government's case against Newmont.

Earlier this week, police submitted for the second time the
case files of six Newmont executives to the North Sulawesi
Prosecutor's Office.

Agusman said the government must review and monitor closely
and honestly all of Newmont's operations in the country to
prevent similar problems reoccurring in the future.

Newmont has two other operations in Indonesia -- PT Newmont
Nusa Tenggara in Sumbawa, West Nusa Tenggara, and PT Newmont
Horas Nauli in South Tapanuli, North Sumatra.