Jakarta, Indonesia – Indonesia is pressing ahead with plans to charge six executives from Denver gold giant Newmont Mining Corp. over alleged pollution but is willing to negotiate a settlement in its $133.6 million lawsuit stemming from the case, an official said Monday.
Chief Economic Minister Aburizal Bakrie dismissed criticism that the coming criminal trial involving the executives – including two Americans and an Australian – would hurt Indonesia’s chances to attract foreign investment.
“On the civil case, we are ready to make an out-of-court settlement, and we have made a team to work toward that,” Bakrie told reporters. “But we will not interfere in the criminal case. If they are proven to be doing something against the law, they have to face criminal action.”
Newmont’s reaction to Bakrie’s statement was mixed.
“We welcome the government’s announcement (on the civil case) … but our focus remains on our six employees who face possible criminal charges,” said Newmont spokesman Doug Hock.
“While we would like to discuss an out-of-court settlement of the civil suit, as proposed by the government, it is difficult to do so until the criminal case against our employees is resolved,” he said.
He reiterated Newmont’s position on the pollution allegations.
“Every credible study to date, including the Ministry of Health study released last week, confirms what we’ve maintained all along: There is no connection between the illnesses of some of the villagers and our mining operation,” he said.
Both cases stem from allegations that the company’s Buyat Bay gold mine in central Indonesia caused pollution that sickened residents.
The executives have been accused of corporate crimes involving the alleged pollution and are expected to stand trial soon.
If convicted, they could face up to 15 years in jail.
Bakrie said it was too early to discuss a strategy to settle the civil lawsuit, but he said that any agreement may include the cost of moving dozens of families that live near the polluted bay.
He also said the government has dropped a travel ban against the six Newmont executives in exchange for the company putting up 10 billion rupiah ($1.05 million) bail. The government also promised the six would not be detained before the criminal trial, he said.
Robert Gallagher, vice president of the company’s Indonesian operations, said he has heard nothing about an out-of-court settlement and denied any wrongdoing.
“We didn’t pollute,” he said.
He said the company would consider helping to move villages, boost its financial support to the area around the mine and monitor pollution levels in the bay for as much 20 years beyond the current three-year commitment.
Newmont has admitted releasing 17 tons of mercury waste into the air and 16 tons into the water over five years but says the totals were within Indonesian government standards.
Denver Post staff writer Greg Griffin contributed to this report.
Newmont’s Indonesian travails
July 20, 2004: Four residents living near the Minahasa mine file criminal complaints with Indonesian law-enforcement officials over alleged health problems from mining pollution.
Aug. 31: Newmont Mining Corp. completes processing of stockpile ore at the Minahasa mine.
Sept. 3: Three Indonesian villagers file a $543 million civil claim against Newmont, alleging that mine tailings have sickened nearby residents.
Sept. 22-23: Six Newmont employees are detained by police. Five of them are jailed for one month.
Dec. 22: The civil case is settled, with the villagers admitting there is no evidence that illnesses were caused by mine waste.
March 10: The Ministry of Environment files a $133.6 million civil suit, seeking damages for alleged pollution of Buyat Bay.
May 9: A summary of a new report that sides with Newmont regarding its environmental practices in Indonesia may help clear the six Newmont executives under criminal investigation, company officials said.
Monday: Indonesia says it will pursue plans to charge the six Newmont execs over the alleged pollution but is willing to negotiate a settlement in the $133.6 million suit stemming from the case.
THE DENVER POST
