Newmont cautious over new turn in pollution case
Newmont cautious over new turn in pollution case
Ahmad Pathoni, Agence France-Presse, Jakarta
U.S. gold miner Newmont reacted cautiously on Wednesday to a move by Indonesian prosecutors to drop pollution charges against five of six employees, insisting it was not guilty of releasing deadly toxins into a bay in Sulawesi from one of its mines.
A spokesman for Newmont, which has been battling with the Indonesian authorities since claims emerged last year that residents living near a Newmont operation on Sulawesi island had fallen ill, said the firm wanted all charges scrapped.
"We haven't received any official notification of this, but we would be pleased if the charges were dropped against our five employees," spokesman Rubi Purnomo told AFP.
"However, we would be disappointed if any charges are filed against the company," he added.
Prosecutors said on Wednesday they were no longer pursuing the five Newmont staff named in connection with the case, but would still seek a sentence for American Richard Ness, the firm's top local executive.
If convicted, he faces a maximum sentence of 15 years.
The decision marks a dramatic stand down for Indonesia, which has risked efforts to improve its reputation as a safe destination for foreign investment by prosecuting Newmont using what many regard as inconclusive evidence.
The police launched an investigation last year following the claims that Newmont had pumped toxic waste into the air and sea around its mine in Sulawesi's Buyat Bay, causing neurological disorders and severe skin problems.
Newmont has steadfastly denied the charge, but a criminal case was prepared naming Ness and five other Indonesian and expatriate staff, who were detained by police for one month.
A Jakarta court later ruled that the police investigation was illegal as the matter fell within the realms of civil litigation, but an appeal reinstated the criminal case and a travel ban was slapped on Ness and the others.
The government has also filed a civil lawsuit against Newmont, the world's biggest gold producer, seeking Rp 1.24 trillion (US$130 million) in damages -- although this is expected to be settled out of court.
Herley Robert Ilat, a spokesman for the prosecutors' office in North Sulawesi province said the decision to drop charges against the five employees was made as they were now viewed as superfluous and possibly damaging to the case.
"To avoid jeopardizing the whole case, we will pursue only relevant charges," he said.
Newmont's operations in Buyat, 2,414 kilometers northeast of Jakarta, ceased in August 2004, shortly before the first allegations of pollution emerged.
From the outset, Newmont has claimed that it disposed of toxins safely and that the levels of mercury and arsenic found around the mine were well within acceptable levels.
Studies on the waters around Buyat Bay have shown conflicting results. A World Health Organization-backed report found no evidence of pollution but government tests showed high levels of toxins.
Purnomo said Newmont, which has another major mining operation in eastern Indonesia, was concerned that the firm had been given little opportunity for redress despite what it said was clear evidence of its innocence.
"There are more than 10 independent studies that show the water is clean and the fish are safe and the local residents' health has not been harmed by our operation," he said.
"We will vigorously defend our company and our president director Richard Ness if the case goes to trial."