Court ends Newmont civil case

Newmont is accused of polluting an area of North Sulawesi

An Indonesian court has dismissed a civil suit against the world's largest gold miner, saying it does not have the jurisdiction to hear the case.

The Indonesian arm of Newmont Mining Corp and its top US executive are accused of pollution in North Sulawesi.

Newmont also faces similar criminal charges, and these are not affected by Tuesday's ruling.

Indonesia's government claims residents have been sickened by the pollution, but Newmont denies any wrongdoing.

"This court has no authority to try the case filed by the government over alleged environmental pollution by Newmont," said Judge Sudarto, at South Jakarta District Court.

"Under the contract, such a dispute should be settled through conciliation or be brought to international arbitration."

A spokesman for Newmont Minahasa Raya said it was "very pleased" with the decision.

It remains to be seen whether the Indonesian government will now attempt to seek international arbitration on the $133m civil suit, or try to settle out of court.

'Toxic metals'

Under the criminal proceedings, Richard Ness, president of Newmont Minahasa Raya, faces a maximum 10-year jail sentence if convicted.

Buyat Bay is about 1,300 miles northeast of Jakarta

Newmont Minahasa Raya and Mr Ness are accused of knowingly dumping waste on an island in North Sulawesi province, about 1,300 miles north east of Jakarta.

The Indonesian authorities claim local residents have suffered serious skin diseases and neurological disorders after being exposed to abnormally high levels of toxic metals including mercury and arsenic.

The firm, which began operations in the area in 1996, says it has fully complied with environmental regulations relating to waste removal from the mine, which closed last year.

It insists there is no credible scientific evidence pointing to any environmental pollution.

In its defence, the firm is expected to point to independent research - including a report commissioned by the World Health Organisation - arguing that no environmental damage was caused and that traces of heavy metal deposits found on villagers were within acceptable levels.

The trial follows the detention of five Newmont employees last year in relation to allegations of illegal dumping.

An Indonesian court subsequently ruled that the arrests were illegal.