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.