Fri, 26 Nov 2004

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.