Chris Brummitt, Jakarta – The world's largest gold mining company suspended exploration on Indonesia's Sumbawa Island after unidentified people torched a camp for its workers, the company said Monday.
No one was injured in the attack Sunday on a remote Newmont Mining Corp. camp. But the incident underscores the difficulties facing foreign companies working in remote corners of Indonesia and comes amid rising anger at Western mining and energy interests in the country.
Newmont's local subsidiary said in a statement that the "unlawful and violent action" by around 50 people had forced it close the Elang camp and suspend exploration activities in the area. It said the attackers did not come with any demands.
However, local police spokesman Maj. Tribudi Pangastuti said the assailants were demanding unspecified amounts of "compensation" for the exploration activity. She said no arrests had been made.
Newmont "is disappointed that the illegal act by this small group of people has caused the larger community to suffer as many people will lose their jobs and businesses," the company said.
The Denver-based company already operates a massive gold and copper mine on the island. It said operations there were unaffected by the violence.
Foreign mining and energy companies in Indonesia face frequent protests by nearby residents demanding jobs or compensation for resources, and spend millions of dollars on community development projects.
Poor law enforcement and local government compound the problems, which analysts say are stopping foreign companies from investing badly needed dollars in the country's natural resources sector.
"This is wrong, specially at a time when we are trying to fix our image to become investor friendly," said Indonesian Chamber of Commerce and Industry deputy chairman John Prasetio. "Even domestic investors will feel uneasy if the government cannot guarantee security."
Newmont faces other problems elsewhere in Indonesia. On Sulawesi island, one of its top American executives, Richard Ness, is facing criminal charges over allegations that waste from a now-closed gold mine polluted the bay and sickened villagers. The company denies the allegations. Freeport-McMoRan Copper & Gold Inc. temporarily closed its massive Grasberg gold mine in Papua province last month after protesters demanding the right to mine its waste ore blockaded the facility.
On Monday, around 100 protesters rallied outside the US Embassy in Jakarta, holding banners demanding the return of the country's natural resources and torching an effigy of President Bush, depicted with long nails and bloody fangs.
Separatists demanding Papuan independence, environmentalists complaining of alleged pollution and nationalists angry at a foreign company digging up Indonesian metals have all joined recent protests against the mine.
There have also been rallies over a deal last week between Indonesia's state-owned oil company and Exxon Mobil Corp. to jointly operate the country's largest untapped oil field in Cepu, Java Island.