An Indonesian court yesterday acquitted a US executive and his company, Newmont Mining Corp, of dumping dangerous levels of toxins into a bay and sickening villagers, cheering foreign investors and angering environmentalists.
Richard Ness, 57, faced a maximum 10 years in jail and a US$60,000 fine.
Presiding judge Ridwan Damanik told the Manado District Court documents and testimony presented during the 21-month criminal trial proved waste rock dumped into the water by Newmont's now-defunct mine on Sulawesi island did not exceed government standards.
"There also is not enough evidence that people suffered from health problems," he said, triggering shouts of "Hooray!" from Newmont's supporters in the packed, sweltering court. Defense lawyers and family members threw their arms around the smiling Ness, the president director of Newmont's local subsidiary,
"I'm thrilled," he said after calm returned.
Prosecutors immediately said they would appeal as hundreds of demonstrators ringing the building chanted "Reject the verdict!"
The trial was being closely watched by foreign investors already wary about legal uncertainties in Indonesia, which boasts some of the world's largest gold, tin, copper and nickel deposits but is also considered among the most corrupt countries.
Red tape, rising prices, political instability and labor problems add to their concerns.
"We're very grateful, a guilty verdict of course would have affected the investment climate," said Witoro Soelarno of Indonesia's energy and mineral resources department, noting that foreign firms all but abandoned the mining sector after the 1997 to 1998 Asian financial crisis.
The government expects mining investment in the country to rise to US$1.13 billion this year from US$880 million last year.
Environmentalists had hoped the cash-strapped government -- which coddled investors during former Indonesian president Suharto's 32-year dictatorship -- would find a multinational corporation guilty of pollution charges, noting that the country's unique and rich ecosystem was rapidly deteriorating.
About 1,000 protesters gathered outside the tightly guarded court yesterday, some holding banners that said "Sentence Newmont!" and "Improve Indonesia's environmental laws!" Others rallied in the coastal city on motorcycles, snarling traffic.
"We want Newmont and its director to take responsibility," said protest organizer Didi Koleangan, referring to allegations villagers living near Buyat Bay complained of skin disease, lumps, breathing difficulties and dizziness.
Though evidence presented to the court was limited to a few villagers complaining of itchiness, some activists said follow-up research should be conducted for up to 30 years to make sure they are not suffering from body arsenic accumulation.
The lengthy trial -- which cost Newmont millions of dollars in salaries, travel and public relations -- was complicated by conflicting test results.
A police report showed mercury and arsenic levels in Buyat Bay, 2,000km northeast of Jakarta, were well beyond national standards. But tests by the WHO, Indonesian government agencies and several independent groups found that pollutants were well within normal limits.
"The police evidence doesn't stand up," Damanik said, adding that the prosecution was in contempt of court when it refused to order a resampling for further tests. He also said the case should never have been in a criminal court.
"We are relieved, there have been a lot of people under a dark cloud of suspicion over this," said Robert Gallagher, Newmont's vice president for operations in the region, noting that fisherman and others in Buyat Bay have suffered economically because of the claims.
"It's been awful for Rick Ness and his family," he said.
Newmont, one of the world's largest gold miners, began operations in Sulawesi in 1996, and stopped mining in 2002 after extracting all the gold it could. But it continued processing ore until Aug. 31, 2004, when the mine was permanently shut.
Other large mining companies in Indonesia are Freeport McMoRan Copper & Gold and Rio Tinto Plc.
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