Indonesian Political, Business & Finance News

Newmont Responds to Severance Demands from Former Newcrest Workers

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Mining

Newmont Corporation, the world’s largest gold producer based in Denver, Colorado, United States, has denied any connection to the issues faced by hundreds of former Newcrest workers in North Halmahera, North Maluku.

Jessica Geurkink, Director of Communications at Newmont Corporation, stated that the issues related to former Newcrest employees in Halmahera, North Maluku, arise from the divestment of Newcrest’s ownership in the Gosowong mine, which was completed more than six years ago, long before Newmont’s acquisition of the Newcrest group. Neither Newmont nor any Newcrest entity has held ownership or operational involvement in the Gosowong mine since the divestment was finalised in 2020.

“All employment obligations arising from that divestment lie with the current owner and operator of the mine,” Jessica said in a message sent to Tempo on Saturday, 2 May 2026.

According to Jessica, Newmont always adheres to responsible business practices, complies with applicable laws and agreements, and treats fair treatment of workers as highly important. The company will continue to do so across all its operations.

In the same spirit, Jessica said, Newmont will pursue all appropriate channels to protect its position and reputation. “Therefore, we view the published article as containing accusations that do not accurately reflect the actual circumstances. This is very regrettable.”

The statement responds to demands from hundreds of former employees of PT Newcrest Mining Limited, who are seeking resolution of their workers’ rights following a mass layoff in 2020. They have asked the Australian gold mining company operating in North Halmahera, North Maluku, to settle its obligations after a court decision is issued.

“At present, there are 735 employees whose severance has not been paid. The value exceeds IDR 100 billion,” said Rusli Gailea, Chairman of the Labour SPSI at PT Nusa Halmahera Mineral (NHM), to Tempo on Tuesday, 29 April 2026.

Rusli explained that the former Newcrest workers who have not received severance are mostly employees who have worked for more than 20 years in the operational circle of Nusa Halmahera Minerals (NHM). They were laid off in 2020 and have not received severance to date.

However, Rusli said, the matter has already been taken to court and has a legal decision. The Supreme Court has even ordered Newcrest to pay the workers’ severance arising from the 2020 work agreement.

“But the workers’ severance still has not been paid. We have made various efforts, up to the cassation decision, but Newcrest remains firm in refusing to pay the former workers’ severance,” Rusli stated.

Newcrest Mining Limited was previously known as the majority shareholder through a joint venture in PT Nusa Halmahera Mineral, which manages the Gosowong gold mine in North Halmahera, North Maluku. At that time, Newcrest held 75 percent of the shares together with PT Aneka Tambang Tbk (Persero) or Antam at 25 percent. Newcrest’s involvement in Halmahera began with an investment in 1990.

The Australian company participated in the Halmahera region gold mining investment project. Newcrest became more involved in the gold mining project after PT Nusa Halmahera Minerals (NHM) signed a Generation VI Contract of Work (KK) with the Indonesian Government on 28 April 1997.

Currently, Newcrest Mining Limited itself has been fully acquired by the global gold giant Newmont Corporation in 2023. The transaction value reached approximately US$17 billion or equivalent to IDR 290 trillion, making it one of the largest consolidations in the history of the global gold mining industry.

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