Minister denies suit against mining firm Newmont dropped
Minister denies suit against mining firm Newmont dropped
Bambang Nurbianto, The Jakarta Post, Jakarta
State Minister of the Environment Rachmat Witoelar denied on
Monday that the government had decided to drop its US$117.86
million lawsuit against PT Newmont Minahasa Raya for allegedly
polluting Buyat Bay in North Sulawesi.
However, he confirmed that the government was attempting to
negotiate an out-of-court settlement in the civil lawsuit against
the U.S.-based gold mining firm.
Witoelar said the out-of-court settlement being sought by the
plaintiff and the defendant was just one of the legal options
suggested by judges of the South Jakarta District Court.
"If we fail to settle the case amicably, we will continue with
the case through a civil lawsuit," he told a news conference in
Jakarta.
The minister was asked to clarify the statement made by
Coordinating Minister for the Economy Aburizal Bakrie that the
government was seeking an out-of-court settlement in the civil
lawsuit stemming from a criminal case against Newmont.
Aburizal reiterated on Monday that the government would press
ahead with the criminal case against the company but was willing
to reach an out-of-court settlement in the civil lawsuit. Both
cases stem from the pollution charges laid by police against
Newmont.
He dismissed criticism that the coming criminal trial of six
executives from Newmont, including two Americans and an
Australian, would hurt Indonesia's chances to attract foreign
investment.
"On the civil case, we are ready to settle out of court and we
have formed a team to work toward that," he was quoted by AP as
saying. "But we will not interfere in the criminal case. If they
are proven to have done something against the law, they'll have
to face criminal charges."
Newmont spokesman Rubi Purnomo said on Monday night his
company had not as yet been officially notified of the out-of-
court settlement plan, but welcomed it.
Reports that the government would settle the civil case
amicably have been met with criticism from many environmental
activists, who fear that it would set a bad precedence in
protecting the environment.
Witoelar expressed optimism that the government would win the
civil lawsuit against Newmont if the out-of-court settlement
failed.
"If we win the case, the (damages) money will be given to
Buyat people who have suffered because of the pollution. So, we
will not take the money (ourselves)," he added.
Witoelar said the criminal case would soon be tried in the
Manado District Court, North Sulawesi, as prosecutors have
completed the case files of the six Newmont executives.
Aburizal said the government and Newmont had agreed to drop
the travel bans on the six suspects in exchange for the company
paying Rp 10 billion (US$1.05 million) as bail. The government
also promised they would not be detained ahead of the criminal
trial, he added.
Witoelar said he was upbeat that out-of-court settlement
negotiations would not affect the criminal case.
Newmont, which is also facing a multimillion dollar lawsuit in
Peru, has denied allegations that its mining operations near
Buyat Bay resulted in pollution that caused villagers to develop
skin diseases and tumors.
A string of scientific tests on samples taken from the bay and
from residents by the government, Newmont and other parties
produced conflicting results.
Newmont has admitted to releasing 17 tons of waste mercury
into the air and 16 tons into the water over five years, but said
that these releases were far below Indonesia's emission
standards.
The World Health Organization and an initial environment
ministry report found that the water in the bay was not polluted,
but a subsequent ministry study found arsenic levels in the
seabed were 100 times higher at the waste-dumping site than in
other parts of the bay.
However, the latest government study released last week found
heavy metal traces in villagers living close to the mine were
within normal levels, though slightly higher than those living
far from the facility.