Manado, Indonesia – An American who heads the Indonesian branch of the world’s largest gold producer returned to court today to defend himself against charges of dumping toxins into a bay, sickening villagers who lived nearby.
The trial, which opened two weeks ago on Sulawesi Island, is being closely watched by business leaders who say a guilty verdict could set back Indonesia’s improving foreign investment climate.
Environmentalists, meanwhile, are eager to see if the cash-strapped government will punish a multinational mining company for the first time in recent memory.
The government alleges that Denver-based Newmont Mining Corp. violated environmental laws by dumping millions of tons of mercury and arsenic-laced pollutants into Buyat Bay, allegedly causing villagers to develop skin diseases and other illnesses.
It is holding the company’s director, Richard Ness of Ada, Minn., accountable. He faces up to 10 years in prison and a $68,000 fine if convicted.
Ness’ lawyers asked today that the case be dismissed, arguing that the investigation into the alleged contamination was flawed and that the law has been poorly applied.
“We continue to stand behind the merits of our case – that Newmont has been a good steward of the environment and has not polluted – but our focus now is on the absence of legal footing for the indictment,” Robert Humberson, a Newmont official, said before the trial reopened.
Newmont began operations on Sulawesi Island in 1996 and stopped mining two years ago after extracting all the gold it could. But the company continued processing ore until Aug. 31, 2004, when the mine was shut permanently. It has repeatedly said charges against the company and Ness were baseless, citing test data that found the bay was not polluted.
