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US executive takes the stand in Newmont toxins trial

An American who heads the Indonesian branch of the world's largest gold producer returned to court yesterday to defend himself against charges of dumping toxins into a bay, sickening villagers who lived nearby.

The trial, which opened two weeks ago on Sulawesi Island, is being closely watched by business leaders who say a guilty verdict could set back Indonesia's improving foreign investment climate.

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 alleges that the US-based Newmont Mining Corp violated environmental laws by dumping millions of tonnes of mercury and arsenic-laced pollutants into the Buyat Bay, allegedly causing villagers to develop skin diseases and other illnesses.

It is holding the company's director, Richard Ness of Ada, Minnesota, accountable.

He faces up to 10 years in prison and a fine of US$68,000.

Ness appeared calm, occasionally whispering to his translator, as his lawyers asked that the case be thrown out. They argued that the investigation into the alleged contamination was flawed and that the law has been poorly applied.

"We continue to stand behind the merits of our case -- that Newmont has been a good steward of the environment and has not polluted -- but our focus now is on the absence of legal footing for the indictment," Robert Humberson, a Newmont official, said hours before the trail reopened.

Newmont began operations on Sulawesi Island -- 2,100km northeast of Jakarta -- in 1996 and stopped mining two years ago after extracting all the gold it could. But the company continued processing ore until Aug. 31 last year, when the mine was permanently shut.

It has repeatedly said charges against the company and Ness were baseless, citing test data that found the bay was not polluted.
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