Indonesian Political, Business & Finance News

NGOs reveal 'secret' report on PT Newmont

| Source: JP

NGOs reveal 'secret' report on PT Newmont

JAKARTA (JP): Non-governmental organizations criticized the
Supreme Court on Friday for ordering a delay of execution of the
local district court's decision to shut down a gold mine in North
Sulawesi, saying the decision would be harmful to the
environment.

They also revealed an official June 1999 report yet to be made
public on environmental damages involving the mining company PT
Newmont Minahasa Raya.

Deputy director of the Indonesian Forum for Environment
(Walhi) Suwiryo Ismail said that the government should have taken
advantage of the Tondano District Court's ruling in Minahasa,
North Sulawesi, for the sake of the environment.

"The event (district court's ruling) should be used to
disclose the environmental damage by Newmont that has been kept
secret by the company and the government," Suwiryo told reporters
in a press conference.

Supreme Court Chief Justice Sarwata issued the order to the
head of the Tondano District Court on Tuesday, after the district
court had ruled that Newmont must shut down its mine in Ratatotok
by Sunday over a tax dispute between Minahasa regency and the
company.

Chalid Muhammad, coordinator for the Mining Advocacy Network
(JATAM) said that the river near Newmont's gold mine site in
Buyat Bay in Minahasa was polluted by acidic water from the mine.

While displaying some photographs taken by his organization,
Chalid said that the pollution had caused skin rashes, itches and
infections to local women who use the river water to wash clothes
and children who always play in the river.

Chalid said that a joint team formed by former North Sulawesi
governor, E.E. Mangindaan, last year revealed that Newmont's
tailing disposal system should be reevaluated because toxic
elements at the disposal site in Buyat Bay had reached an
intolerable level.

Among the team members was the renowned toxicologist from the
University of Sam Ratulangi, Manado, Rizal Max Rompas, Chalid
said.

The team reported a significant presence of metallic
substances such as mercury, lead, arsenic, copper, and cadmium.

The deaths of many fish have been reported since the disposal
system started in 1996. Local fishermen have complained about
their decreasing income from Rp 500,000 a month to only Rp
100,000, "if they are lucky", Chalid said.

The team also denied the presence of a thermocline, which is
a layer that separates a body of water into different temperature
zones. The condition prevents disposed materials from spreading
and makes them stay in troughs.

Newmont claims a thermocline exists at the tailing disposal
site in the bay.

"These facts have never been published despite their relevance
to understanding the environmental situation," Chalid said.

Suwiryo said that the government and legislators were only
concerned about protecting foreign investors' interests and
ignoring the people's health.

Criticism against the Tondano District Court's closure order
of the Newmont mine has come from Vice President Megawati
Soekarnoputri, economic observers and legislators.

"Contamination may take a long time before adverse effects
become apparent," Suwiryo said.

"How can people only think of the money these kind of
(environmentally ignorant) investors put into the country while
people might be dying from the effects they cause?" Suwiryo
remarked.

State Minister of Investment and State Enterprises Development
Laksamana Sukardi said that the court ruling to close the mine
could frighten off foreign investors. (08)

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