Newmont Mining Corp. counters environmental charges at meeting

Newmont Mining Corp. counters environmental charges at meeting

DENVER (Dow Jones): Newmont Mining Corp. (NEM) Chief Executive Ron Cambre disputed charges of environmental pollution and unfair dealing Thursday at the gold-mining company's annual shareholders' meeting in Denver.

Residents from Peru, Indonesia and the Philippines appeared at the meeting to protest Newmont activities thanks to Project Underground, a Berkeley, Calif., nonprofit group organized to support communities threatened by mining or oil industries.

Half a dozen picketers on the sidewalk outside the meeting carried signs with slogans such as "Newmont Mines Destroy Lives."

Project Underground director Danny Kennedy said the appearance at the annual meeting was designed as "an opening to a dialog that hasn't happened."

But he noted that his organization is firm on three issues: no development of mines in the Cordillera region of the Northern Philippines, where Newmont has significant mining applications; an end to submarine tailings disposal from the Minahasa mine in Indonesia; and the cessation of expansion of mining in the Yanacocha mine in Peru.

"They're not negotiating points. They are the demands," Kennedy said.

Cambre and others at Newmont countered the charges leveled against the company.

For instance, Julio Marin of Peru said that he had lost land to Newmont without being compensated. Cambre responded that Peruvian landholders were not only compensated, but were paid a multiple of the fair value of the land by Newmont. "Anyone who was a property owner of record was paid for their land," he said. "This is a matter of public record."

Marin also charged that there was a problem with water quantity and quality because of the mine. Cambre responded that the company is "monitored by all the environmental standards of the world" and had been "recognized by Peru as the most socially responsible citizen in that country."

Newmont spokesman Doug Hock said separately, "We meet all the appropriate water standards" for canals and streams adjacent to the Yanacocha mine. Indeed, he said, Newmont follows the same standards in Peru as those required in Nevada.

Segunda Castrejon of Peru charged that the quality of life had worsened because Newmont's mine had forced farmers to move to the city. Cambre countered that schools were built and electricity and medical facilities became available in the area because of Newmont. The Yanacocha mine has 1,150 full-time employees and 2,000 contractors. Cambre said that Newmont and its partners at the mine feed 3,500 school children each day.

Indonesian fisherman Anwar Stirman said that Newmont's disposal of tailings from its Minahasa mine had polluted Buyat Bay near the mine and hurt fishing. He also said skin diseases had been caused by that pollution.

Cambre responded that there were problems with skin rashes before Newmont's entry into the area and "the Indonesian government has said our water quality is excellent."

Indonesian Chalid Muhammad cited a study by a university professor showing there was indeed pollution caused by the disposal into the bay of "tailings," the material left after gold was removed from the ore.

But David Francisco, Newmont's executive vice president of operations, told Dow Jones Newswires that Newmont's findings differed from that study. He said that study, from a professor at the University of Sam Ratulangi, was based on samples of water and fish tissue in the bay that were taken at the same time as Newmont sampling, and the professor's sampling produced "data completely inconsistent with the samples we had."

A subsequent study prompted environmental regulators to conclude the bay was not polluted, he said.

Francisco said fishing in the bay may have gotten worse for individual fishermen because there were more people fishing. "As far as we can see, the fish catch has certainly not gone down," he said.

Cambre emphasized that the viewpoint of those from Peru and Indonesia speaking at the meeting was totally different from those of governmental officials who want Newmont and other foreign companies to invest in their countries.

He emphasized Newmont's willingness to listen and talk and receive documentation. But since Newmont so far disagrees with the charges, it's unclear whether any action will result from them.

Said Hock: "We don't perceive these problems being there, and we have the support of the communities, so it shouldn't have any impact on our operations."