The Government of Indonesia and Newmont Announce Buyat Bay Agreement
DENVER, Feb. 16 — Newmont Mining Corporation (NYSE: NEM) announced
today that its Indonesian subsidiary, PT Newmont Minahasa Raya (PTNMR),
and the Government of the Republic of Indonesia signed a scientific
monitoring agreement as part of an effort to resolve the longstanding
Buyat Bay controversy. The agreement also provides for enhanced
development programs in North Sulawesi.
Under the terms of the agreement, the Government and PTNMR will nominate members to an independent scientific panel that will develop and implement a ten-year environmental monitoring and assessment program. 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 program, the company has agreed to work with the government to enhance the sustainable development programs in the communities surrounding the mining operation. Through a collaborative effort with local, regional, and central government participation, PTNMR hopes to leave an even more enduring legacy of better education, improved economic opportunities, and enhanced infrastructure.
"In our operations around the globe we are focused on sustainable development as a part of who we are and how we do business," said Wayne Murdy, Newmont's Chief Executive Officer. "This agreement demonstrates our commitment to these values."
The company will provide initial funding of $12 million to cover the
cost of the monitoring and community development programs. 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 will continue to vigorously defend this proceeding.
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, statements regarding transaction closure. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or
recovery rates from those assumed in mining plans, political and operational risks in the countries in which we operate, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2004 Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as well as the Company’s other SEC filings. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
SOURCE Newmont Mining Corporation