Newmont denies role in toxic waste trade

Newmont denies role in toxic waste trade

Fitri Wulandari, The Jakarta Post, Jakarta

West Nusa Tenggara-based copper mining firm PT Newmont Nusa
Tenggara has denied allegations that it is involved in illegally
trading toxic waste, particularly used oil.

Anton Susanto, an executive of the company, said that his
company had never been involved in any such illegal activity.

"Our company always manages used oil and other toxic waste
from mining activities according to the regulations. We always
follow the procedures stipulated in regulations regarding the
storage and collection of toxic waste," he said in a statement
made available to The Jakarta Post recently.

Anton was responding to allegations made by an executive of
the West Nusa Tenggara chapter of the Indonesian Forum for the
Environment (WALHI-NTB) last month.

Bambang F. Mei, Walhi-NTB regional executive, said that based
on investigations, reports from informed sources and scientific
analyses, the company had engaged in the illegal trade of toxic
wastes, such as used oil and diesel fuel.

"We have received reports about irregularities in toxic waste
handling procedures, including allegations of (involvement in)
the toxic waste trade," Bambang told reporters in the provincial
capital Mataram last week as quoted by Antara.

According to Bambang, Newmont sold used oil to a toxic waste
collection company, UD Sumber Anyar, for Rp 200 to Rp 500 per
liter. Each month, Bambang said, Newmont produced 100 to 150 tons
of used oil.

Newmont contracted UD Sumber to transport its used oil and
toxic waste to its treatment facilities from October 1999 to
September 2000.

Bambang said that what Newmont had done was in violation of
the 1997 Environmental Management Law No. 23, which stipulates
that toxic waste must not be traded.

Anton confirmed that Newmont had engaged UD Sumber Anyar to
transport used oil to treatment facilities. But while UD Sumber
Anyar had paid for some of the oil received, the amount was far
less than the cost to Newmont of transporting the used oil from
the mine site, Anton said.

Walhi-NTB also alleged that Newmont had hired a new contractor
without a proper permit to transport its toxic waste after the
contract with UD Sumber Anyar expired.

Bambang said that, after its contract with UD Sumber Anyar had
ceased, Newmont hired PT Caltex Oil Indonesia to transport its
toxic waste. PT Caltex, according to him, did not have the
relevant permit from the central board of the Environmental
Impact Control Agency (Bapedal), the local Bapedal office or the
directorate general of petroleum and gas.

Later, and still without the permit, PT Caltex cooperated with
a shipping company, PT Meratus, in Surabaya, East Java to sell
toxic waste, he said, adding that PT Meratus did not have a
license to transport and distribute toxic waste.

"There is a mutually beneficial collaboration between the
three companies. Newmont in a legal and ethical sense is
considered accountable for violating toxic waste treatment
procedures," Bambang said.

Anton said that Newmont had always hired authorized
contractors to transport its used petroleum products to a
licensed used oil recycling facility in Surabaya or to a
permitted waste treatment facility in Bogor, West Java.

"The transport of used oil from the mine site to the
facilities is conducted under the authority of Bapedal and the
directorate general of sea transportation," he said.

Anton also said the choice of PT Meratus to transport used
products was a business decision and had been conducted in
accordance with the laws and regulations.