Newmont Says Indonesian Civil Suit Withdrawn
Date: 29-Dec-04
Country: INDONESIA
US mining giant Newmont Mining Corp is embroiled in controversy over allegations surrounding mercury and arsenic levels in Buyat Bay near one of the unit's mines in the far north of Sulawesi island, 2,200 km (1,400 miles) northeast of Jakarta.
Six executives of the subsidiary, PT. Newmont Minahasa Raya, are under investigation over the issue and could face criminal charges for pollution.
Three Buyat Bay residents had brought the civil suit. Newmont Minahasa said in a statement the residents had withdrawn the action and as "part of the settlement the plaintiffs acknowledge that their claims were baseless".
The statement also said Newmont Minahasa had agreed, at the plaintiffs' request, to withdraw a $2 million suit of its own against an NGO official over his charges the unit's operations had caused Minamata disease, a form of mercury poisoning.
"We have always maintained that Newmont has not polluted Buyat Bay and that this will become evident when emotions settle down," the statement quoted Newmont legal adviser Mochamad Kasmali as saying.
The NGO official, Iskandar Sitorus, the head of the Legal Aid Foundation for Health Issues, confirmed to Reuters that the suit had been withdrawn.
Prosecutors have said they expect to file charges under environmental laws against the Newmont executives and Newmont Minahasa Raya next month.
A government-commissioned probe concluded last month that sediment in Buyat Bay had significant levels of arsenic and mercury.
Two earlier studies -- one by the Indonesian government and another by the World Health Organisation -- concluded Buyat Bay was not polluted.
The case is being closely watched by business groups, some of whom have criticised the government's pursuit of Newmont as unduly harsh and likely to discourage investment.
Environmental organisations are also watching closely. They say the case shows Jakarta is willing to get tough with polluters.
