Indonesian Political, Business & Finance News

Manado District Court to start Newmont alleged pollution trial

| Source: AFP

Manado District Court to start Newmont alleged pollution trial

A pollution trial against an Indonesian unit of US mining giant
Newmont and its top executive will start on August 5, a court
official said on Thursday.

State prosecutors this week filed charges against Newmont's
Indonesian subsidiary Newmont Minahasa Raya and its American
president director Richard Ness, accusing them of dumping toxic
waste into a North Sulawesi bay.

Hearings in the case, which is being closely watched by both
investors and environmentalists, will start on August 5, said an
official at Manado district.

Indonesian police launched an investigation last year after
claims Newmont had pumped toxic waste into the air and sea around
its mine in Buyat Bay, causing neurological disorders and severe
skin conditions to nearby residents.

Prosecutors said they would present as witnesses local people
allegedly sick because of the pollution.

If Ness is convicted, he faces a maximum jail sentence of 15
years.

The government has also filed a civil lawsuit against Newmont,
the world's biggest gold producer, seeking 1.24 trillion rupiah
(130 million dollars) in damages -- although this is expected to
be settled out of court.

Newmont's operations in Buyat, 1,500 miles (2,400 kilometers)
northeast of Jakarta, ceased in August 2004, shortly before the
first allegations of pollution emerged.

From the outset, Newmont has claimed it disposed of toxins
safely and that levels of mercury and arsenic found around the
mine were within acceptable limits.

Studies of the waters around Buyat Bay have shown conflicting
results. A World Health Organisation-backed report found no
evidence of pollution, but government tests showed high levels of
toxins. -- AFP

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