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Newmont deal no mine of controversy

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Jakarta Post - March 9, 2006

Tb.Arie Rukmantara, Jakarta – A technical snafu Wednesday meant legislators were unable to scrutinize the government's controversial US$30 million out-of-court settlement with PT Newmont Minahasa Raya over a pollution case.

A stream of stinging questions fired at State Minister for the Environment Rachmat Witoelar suddenly turned into a noisy debate among the legislators after they realized they had no copy of the agreement.

After spending some 90 minutes arguing among themselves, the 34 members of the House of Representatives Commission VII overseeing the environment decided to postpone the hearing indefinitely until each had a copy of the deal.

A red-faced legislator Ramson Siagian then announced the hearing was adjourned. "Allow us time to find and study the documents," commission chairman Agusman Effendi told the smiling Rachmat.

The meeting was scheduled to discuss the "Goodwill Agreement" reached between the government and Newmont in February. That deal brought an end to the government's court case against Newmont for allegedly polluting Buyat Bay in North Sulawesi.

Last year, the government lodged a civil lawsuit against the company with the South Jakarta District Court, which found in favor of Newmont in November. The government then lodged an appeal of the verdict with the Jakarta High Court.

Environmentalists and the police have alleged that Newmont, the local unit of Denver-based Newmont Mining Corporation, had polluted the bay with tons of toxic waste from its Messel mine.

However, the firm has consistently denied the allegations, saying there was no scientific evidence to back the claims up.

A World Health Organization-backed report in 2004 found no evidence Newmont had polluted the bay.

The deal obliged the government to dismiss its civil lawsuit against the company in exchange for 10-year post-mining research and community development project paid for by Newmont worth $30 million.

Rachmat said he was unaware the House members had not received copies of the document.

Mining Advocacy Network director Siti Maimunah said the incident showed the House and the government did not care about the consequences of the agreement for the country.

"The House should have called a hearing right after the government signed the deal. Now that everything is approved what can possibly be fixed?" she said.

"It is proven – both the government and the House have failed to represent the people." Rachmat said he would stand by the government's decision if he was summoned again by a House committee.

"The agreement was far more efficient than waiting for court's verdict on our appeal. And I assure you that the agreement will not affect the ongoing court proceedings against the Newmont director," he said.

NMR executive director Richard Ness is being tried in a Manado district court on criminal charges for polluting the bay. He faces a maximum 10-year jail term and a US$68,000 fine if found guilty.

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