A district court in Indonesia has issued a judgment that could result in the temporary closure of the Minahasa gold mine, 80%-owned by
The company says the ruling is highly irregular and has no legal basis.
“We are absolutely appalled by the court’s decision,” says Richard Ness, president of P.T. Newmont Minahasa Raya, the subsidiary that operates the mine.
The regent of the district of Minahasa in North Sulawesi province is seeking tax payments on sand and gravel that the company moved to gain access to the deposit. The local government says the company owes US$5 million in back taxes from as far back as 1985.
However, Newmont says the overburden was placed on waste dumps and not sold or used for commercial use, and that, therefore, no taxes are owed.
“That a court would issue an order against a foreign investor clearly outside any reasonable interpretation of the law is simply mind-boggling,” says Ness. “Obviously, other considerations are at work.”
The company built the open-pit mine in 1996 at a capital cost of US$230 million. It produces 330,000 oz. gold annually.
Be the first to comment on "Ruling could close Newmont gold mine"