Manado District Court to start Newmont alleged pollution trial

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