RI files charges against Newmont

RI files charges against Newmont

Reuters, Jakarta

Indonesian prosecutors filed pollution charges against a local unit of U.S.-based Newmont Mining Corp. and its American chief executive on Monday, in a case that has raised concern among foreign investors.

"It has been submitted to the court," North Sulawesi prosecutor Robert Ilat told Reuters.

Newmont has denied it caused the pollution blamed for sickness among villagers near a gold mine on Sulawesi island's Buyat Bay, about 2,200 km (1,400 miles) northeast of Jakarta.

The trial would be held in Manado in North Sulawesi.

Robert Ilat said the charges related to "illegal waste dumping that caused pollution by negligence or deliberate (dumping)" and had been laid against the firm and its president director, Richard Ness.

Prosecutors recently dropped plans to file charges against five other employees -- an Australian, an American, and three Indonesians due to lack of evidence.

Prosecutors have said PT Newmont Minahasa Raya and its president director had the greatest responsibility.

The case has alarmed foreign investors worried about the difficulty of doing business in Indonesia and raised fears about the risks for foreign company employees.

Investment in mining has slumped in recent years largely because of changes to mining laws that many investors believe do not offer enough protection.

Many investors also say Indonesia is one of the toughest places in the region to do business because of corruption, excessive red tape and tough labor laws.

A Newmont spokesman said the firm had not been formally notified of the development on Monday.

"We're very ... disappointed that charges are still being pursued against our executive, Mr Richard Ness," said company spokesman Rubi Purnomo.

Last month, Indonesia's environment ministry agreed to seek an out-of-court settlement with Newmont in a separate multi-million dollar civil suit.