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.