Jakarta, Indonesia – Newmont Mining Corp., the world’s largest gold producer, is optimistic about settling a $133.6 million lawsuit over alleged pollution at an Indonesian mine, saying Thursday it hopes to wrap up discussions with the government ahead of a scheduled trial next month.
Indonesia alleges that Newmont Mining Corp.’s local subsidiary, Newmont Minahasa Raya, violated environmental laws by dumping millions of tons of mercury and arsenic- laced pollutants into Buyat Bay on Sulawesi island, allegedly causing villagers to develop skin diseases and other illnesses.
The Denver-based company said it hopes to forge an agreement over the government’s civil lawsuit before Oct. 13, when the company is scheduled to present evidence on why the case should be dismissed.
“We’re optimistic,” said Robert Gallagher, Newmont’s vice president of Indonesia operations. “We’re doing everything in our power to cooperate with the government to resolve this as quickly as possible.”
He did not provide details.
The company in the past has said it would not acknowledge any wrongdoing in a settlement but may consider providing money for community development programs around the Buyat Bay mine.
Meanwhile, the company is scheduled to be back in court Tuesday for a criminal trial over the same pollution allegations. A judge is expected to rule on Newmont’s request that charges against its subsidiary and the company director, Richard Ness of Ada, Minn., be dropped.
If convicted, Ness would face up to 10 years in jail and a fine of $68,000.
Newmont has told a court that the police investigation and the indictment are flawed, adding that there was no evidence that villagers were suffering from heavy-metal poisoning or that fish stocks had dropped.
The criminal trial, which opened last month on Sulawesi, is being closely watched by business leaders who say a guilty verdict could set back Indonesia’s improving foreign investment climate.
Environmentalists are eager to see if the cash-strapped government will take the rare step of cracking down on a multinational company accused of pollution.
