Newmont Executive Denies Polluting Indonesian Waters on First Day of Trial

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Newmont Executive Denies Polluting Indonesian Waters on First Day of Trial

 

/August 08, 2005 — By Miedy Pakasi, Associated Press/

 

MANADO, Indonesia — An American executive of Newmont Mining, the world's

largest gold miner, told a court Friday that his company did not pollute

a bay on Indonesia's Sulawesi Island, where it's accused of sickening

villagers and causing fish stocks to plummet.

 

The criminal trial of 55-year-old Richard Ness, the president director

of Indonesian subsidiary Newmont Minahasa Raya, began Friday amid close

scrutiny from foreign investors already anxious about the country's weak

legal system.

 

Environmentalists, meanwhile, are eager to see if the cash-strapped

government will punish a multinational mining company for the first time

in recent memory.

 

The government says Denver-based Newmont Mining Corp. violated

Indonesian laws by dumping millions of tons of mercury and arsenic-laced

pollutants into the Buyat Bay, allegedly causing villagers to develop

skin diseases and other illnesses.

 

It is holding Ness accountable. He faces up to 10 years in prison and a

fine of $68,000 if convicted. Ness denies the charges.

 

" There is no pollution ... I don't know why I am sitting here, " Ness

told the panel of five judges at the opening of his trial in Manado,

1,300 miles northeast of Jakarta.

 

Dozens of police officers stood outside the muggy auditorium that is

being used as a makeshift courtroom. A crowd of 300 watched the

proceedings, including Newmont employees and residents from villages

near the mine.

 

Ness, who is married to an Indonesian woman and converted to Islam in

the 1990s, took his place beside a translator and showed little emotion

as prosecutor Robert Ilat read the 70-page indictment.

 

" As president director, it was up to Richard Bruce Ness to supervise,

control and order his employees to carry out their duties in accordance

with the company's regulations and Indonesian law, " Ilat said.

 

Newmont says its mine waste has remained at the bottom of the bay and

has never entered the bay's ecosystem. The indictment, however, alleges

that its tailings, which are byproducts of processing ore, " were stirred

up by waves, currents and rising tides, polluting the water and damaging

the environment. "

 

" Residents living nearby were contaminated with mercury and arsenic, as

were fish and other creatures of the sea, " Ilat said, adding that the

company never had a permit to dump its waste between 2001 and 2004.

 

Ilat made no mention of villagers' claims that the company's actions

resulted in skin disorders, tumors and other ailments.

 

The trial was adjourned until Aug. 19, when Ness and his lawyers will

present their defense plea.

 

Afterward, Ness told The Associated Press that " it wasn't clear what

they allege that I did wrong. "

 

" This was the first time that any Indonesian institution has accused

Newmont Minahasa Raya of pollution, " he said. " We have never received

anything from any government agency indicating we were in violation of

environmental laws and regulations. "

 

The company says any health problems suffered by villagers near the bay

are due to poor hygiene and diet, as well as mercury pollution from

thousands of illegal miners that work the hillsides along the bay.

 

The case is of concern to foreign investors, who say a weak legal system

adds to the risks of doing business in Indonesia, one of the most

populous nations in the world, and one of the most corrupt.

 

" This appears to be another attempt to use the law to force further

payment from a foreign investor, " said Peter Fanning of the

International Business Chamber.

 

There has been progress, he noted, with high courts increasingly

overturning lower court decisions, but this case will reveal just how

far Indonesia has or has not come.

 

Environmentalists say the trial offers the government -- which for

decades coddled investors -- an opportunity to hold a foreign firm

accountable.

 

" For 30 years, giant mining companies have operated in Indonesia with

impunity despite shocking environmental practices, " said Raja Siregar,

of the Indonesia Forum for Environment.

 

Newmont began operations in Sulawesi in 1996, and stopped mining two

years ago after extracting all the gold it could. But it continued

processing ore until Aug. 31, 2004, when the mine was permanently shut.

 

The company says the case should be heard in a civil, not criminal

court, and argues there is nothing in the environmental law that allows

Ness, of Ada, Minn., to be charged.

 

" Prosecutors are talking about pollution that occurred after 1997, "

lawyer Luhut Pangaribuan told reporters outside the courthouse. " That's

one year before Ness joined the company. "

 

The case is complicated by conflicting test results.

 

The World Health Organization and an initial Environment Ministry report

found Buyat Bay to be unpolluted, and a government study released in May

found traces of heavy metals in villagers living close to the mine were

within normal levels.

 

But the prosecution will present a police report showing the levels of

mercury and arsenic are well beyond national standards.

 

" There is overwhelming evidence from the Indonesian scientific

community, from respected international organizations, and even from the

government itself, that no pollution exists, " said Newmont Vice

President Robert Gallagher.

 

The trial is the culmination of a yearlong legal battle. Five other

executives were jailed for a month in September before prosecutors

decided not to charge them.

 

The company also is fighting a $133.6 million civil suit filed by the

government in the same case. It has refused to negotiate an out-of-court

settlement, insisting the matter should be handled within the company's

work contract.

 

/Source: Associated Press/