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Newmont Mining goes on trial in toxin-dumping case

The world's largest gold mining producer and its top US executive in Indonesia go on trial today for allegedly dumping toxins into a bay and sickening villagers.

Analysts say the case against Newmont Mining Corp will test the cash-strapped government's ability to attract foreign investment while cracking down on environmental crimes.

The Denver, Colorado-based company and Richard Ness, president director of its local subsidiary, Newmont Minahasa Raya, insist they will be cleared of charges that they intentionally or negligently engaged in acts that resulted in pollution.

They say a police report showing high levels of mercury and arsenic in the Buyat Bay on Sulawesi island is flawed.

"We have not done anything wrong," said Ness, 55, who faces a 10-year prison sentence if convicted.

"I am very confident ... we will be exonerated," he said.

Newmont is facing a string of pollution accusations growing out of the company's operations on five continents.

But it is the first time the world's largest gold miner has faced criminal charges for environmental problems and one of the few times Indonesia has dared take a multinational company to court.

The trial in the North Sulawesi capital of Manado, 2,000km northeast of Jakarta, could take several weeks.

It will be, for the most part, a battle over conflicting test results.

The World Health Organization and an initial environment ministry report found the Buyat Bay to be unpolluted, and a government study released in May found that traces of heavy metals in villagers living close to the mine were within normal levels.

But the prosecution, which says Newmont dumped 5.5 million tonnes of pollutants into the water, will present a police report showing the levels of mercury and arsenic are well beyond national standards.
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