Indonesia will press ahead with plans to charge six executives from U.S gold producer Newmont Mining Corp. over alleged pollution, but is willing to negotiate an out-of-court settlement in its $133.6 million lawsuit stemming from the case, the economics minister said Monday.
JAKARTA, Indonesia — Indonesia will press ahead with plans to charge six executives from U.S gold producer Newmont Mining Corp. over alleged pollution, but is willing to negotiate an out-of-court settlement in its $133.6 million lawsuit stemming from the case, the economics minister said Monday.
Chief Economic Minister Aburizal Bakrie dismissed criticism that the coming criminal trial involving six executives from the Colorado-based company -- including two Americans and an Australian -- would hurt Indonesia's chances to attract foreign investment.
"On the civil case, we are ready to make an out-of-court settlement and we have made a team to work toward that," Bakrie told reporters. "But we will not interfere in the criminal case. If they are proven to be doing something against the law, they have to face criminal action."
Both cases stem from allegations that the company's Buyat Bay gold mine in central Indonesia caused pollution that sickened villagers.
The executives have been accused of corporate crimes involving the alleged pollution, and are expected to face trial soon. If convicted, they could face up to 15 years in jail.
Bakrie said it was too early to discuss a strategy to settle the civil lawsuit, but he said that any agreement may include the cost of moving dozens of families that live near a polluted bay.
He also said the government has dropped a travel ban against the six Newmont executives in exchange for the company putting up 10 billion rupiah ($1.05 million) bail. The government also promised they would not be detained ahead of the criminal trial, he said.
Robert Gallagher, the vice president of the company's Indonesian operations, said he has heard nothing about an out-of-court settlement and denied any wrongdoing.
"We didn't pollute," he said.
He said the company would consider helping to move villages, boost its financial support to the area around the mine and monitor pollution levels in the bay for as much 20 years beyond the current three-year commitment.
Gallagher said the company would also keep pushing the government to reopen its criminal investigation and have the company, rather than the six executives, indicted should there be a trial.
"We think there are legal grounds to reopen the investigation" that should include recent health studies and testimony from Newmont employees, said Gallagher. "Once that is done, the prosecutors will be able to see that it is crazy these guys are suspects."
Newmont has admitted releasing 17 tons of waste mercury into the air and 16 tons into the water over five years but says the totals were within Indonesian government standards.
The World Health Organization and an initial Environment Ministry report found that the water in the bay was unpolluted, but a subsequent ministry study found arsenic levels in the seabed were 100 times higher at the waste-dumping site than in other parts of the bay.
However, the latest government study released last week found heavy metal traces in villagers living close to the mine are within normal levels, though slightly higher than those living far from the facility.
Newmont claimed that the survey proved that it did not cause the health problems suffered by residents and said it hoped it would help in its legal battles.
Shares of Newmont fell 21 cents to close at $35.10 in Monday trading on the New York Stock Exchange, near the low end of a 52-week range of $34.70 to $49.98.
Source: Associated Press
