Jakarta, Indonesia – Newmont Mining Corp. agreed Thursday to pay Indonesia $30 million in an out-of-court settlement, ending one of two legal battles over allegations that the company dumped tons of toxic waste into a bay, sickening villagers.
The deal closes a civil suit filed by the government but does not affect an ongoing criminal trial of the U.S. gold-mining giant’s top local executive, who is accused of knowingly dumping dangerous amounts of arsenic and other heavy metals into Buyat Bay on Sulawesi Island.
Newmont’s local subsidiary said it would pay $30 million over 10 years to fund environmental monitoring and community development around the gold mine in exchange for the government’s dropping the case.
“This is the best solution in solving this problem in the interests of the people of north Sulawesi,” Social Welfare Minister Aburizal Bakrie said.
Robert Gallagher, Newmont’s vice president of Indonesian operations, said the deal “reaffirmed our long-term presence and investment in Indonesia and our commitment to the communities where we operate.”
