Thu, 29 Jul 2004

NGOs are not enemy of mining firms: Newmont

Environmental activists have claimed that PT Newmont Minahasa Raya, a subsidiary of U.S. mining giant Newmont Mining Corporation, has contaminated Buyat bay, North Sulawesi, with its tailings, causing the spread of a disease resembling the one that affected the people of Minamata, Japan, several decades ago. Newmont Pacific Nusantara president director Richard B. Ness and the company's environmental advisor Ali Sahami spoke to The Jakarta Post and Bisnis Indonesia on the issue:

Question: The government is setting up a team to see if the environment on the mining site has been contaminated by Newmont. What is your comment on that? Answer (Richard B. Ness):We have been asked to join the team. We welcome the government's effort in this regard.

We are confident of what the team's results will portray. For example, we have taken 500 samples from Buyat bay. The mercury content in Buyat bay is 120 times lower than the standard. The same thing is true for the fish, which are about 2.6 times lower than World Health Organization standards. The North Sulawesi Environmental Supervisory Agency carried out independent tests on mercury, which was 4.5 times lower. We are confident there is no Minamata disease.

Question: What method do you employ to process tailings at the North Sulawesi operation? Answer (Ali Sahami): We use sub-sea tailings disposal (STD) in the bay at about 80 meters depth. We have on-land and sub-sea disposal (options) in our Amdal (environmental impact analysis).

Based on environmental impact assessment and economic, environmental and social considerations, it was decided that sub- sea tailings placement was the most advantageous.

We detoxify our tailings before depositing them anywhere in the ocean or land, to prevent them from releasing cyanide or heavy metals. Question: How can you be sure detoxification is effective? Answer (Sahami): First, tailings from the tanks go through a detoxification circuit before going out through the pipe (into the sea). We measure what comes out of the detoxification circuit every two hours. We measure mercury, arsenic, cyanide and register that. So we know very quickly if there is a problem and shut it (the detoxification facility) down. We never release contaminated (tailings) from our tanks.

We monitor tailings when they reach the sea floor frequently. We take water samples right above the tailings. We measure the sediment frequently and monitor fish in the bay. Once in a while, we directly measure the sediment. Every quarter we give all the data to the government.

Question: So what really happened at Buyat bay? Answer(Sahami)" We don't know. Nothing has been shown to us that is different to what we have been measuring ourselves.

We acknowledge the sediment from the tailings has a higher concentration of arsenic and mercury than its surroundings. We knew it before, and have carried out reactivity testing to show that it is not releasing toxic substances. We have reported to the government but there is nothing to show us that it is contaminating Buyat bay. If we have missed something, please tell us what it is. We would like to cooperate with a forum, to include non-governmental organizations (NGOs), that has full powers of investigation.

Question: With these environmental issues, do you see a conspiracy against mining companies or is this just a classic case of NGOs always being opposed to mining companies?

Answer (Ness): That is not true. NGOs are not the enemy of mining companies. We are working with NGOs in all our areas of operation. I think they are a crucial part of society, and not only in Indonesia.