Buyat Bay investigation

PT Newmont Minahasa Raya (PTNMR), and the Government of Indonesia have signed a scientific monitoring agreement as part of an effort to resolve the long-standing Buyat Bay controversy. The agreement also provides for enhanced community development programs in North Sulawesi. The Government and PTNMR will nominate members to an independent scientific panel that will develop and implement a ten-year environmental monitoring and assessment programme. The panel’s responsibility is to make a definitive, scientific conclusion in regard to the condition of Buyat Bay.

"We are not walking away from Buyat Bay," said Robert Gallagher, Newmont’s Vice President of Australia and Indonesia Operations. "To the contrary, this agreement reaffirms our commitment to environmental responsibility and our confidence that we have fulfilled that commitment at Buyat Bay." The company remains steadfast in its position that its operations have not polluted Buyat Bay or adversely affected the health of area residents.

In addition to the monitoring programme, the company has agreed to work with the government to enhance the sustainable development programmes in the communities surrounding the mining operation. This is to be a collaborative effort with local, regional, and central government participation. PTNMR says it “hopes to leave an even more enduring legacy of better education, improved economic opportunities, and enhanced infrastructure.

The company will provide initial funding of $12 million to cover the cost of the monitoring and community development programmes. Over a ten-year period, Newmont will contribute an additional $18 million. The funds will be managed by an organization governed by interested stakeholders. Accountability for the fund will be ensured through yearly reports that will be made available to the public. The transparency of the scientific panel’s activities will also be assured through annual reports to the public.

The agreement ends the government’s civil lawsuit against PTNMR. In November 2005, the South Jakarta District Court dismissed the lawsuit on jurisdictional grounds, but the government issued a notice of appeal. The agreement does not, however, resolve the ongoing criminal prosecution of PTNMR and its President Director. PTNMR says it “will continue vigorously to defend this proceeding.”