Newmont Forced to Shut Down Its Minahasa Mine by April 16

Manado, April 8, 2000 - PT Newmont Minahasa Raya (PTNMR) announced today that it has been forced to shut down its mine in Ratatotok, North Sulawesi, Indonesia as a result of the issuance today of an enforcement order for the closure of the mine by the District Court of Tondano. The District Court ordered PTNMR to close by April 16, 2000.

"These are truly difficult times not only for investors, but also for the people of Indonesia who depend on us for their livelihoods," said Richard Ness, President-Director of PT NMR. "We regret the decision by the Tondano District Court and are quite frankly outraged at the blatant disregard for the due process of law that the court displayed here today. However, we have no choice but to obey the order and comply."

Ness was referring to yet another in a series of highly irregular decisions taken by the Chief Judge, Susmono, in the hearing today. After the witness for the plaintiff testified, Judge Susmono refused to allow Newmont's witnesses to testify, first citing the late start of the proceedings, then, to the disbelief of the Newmont lawyers, disallowing the witnesses to testify at all because they were "technical" experts.

"We are baffled as to why Judge Susmono does not want to hear the facts of our case. Our witnesses included a senior professor from the Bandung Institute of Technology and a former Director General of Mining for the Government. One can only wonder why a judge who is supposed to make decisions based on merits would refuse to allow our witnesses to address the Court," said Ness.

The closure order relates to a disputed claim by the Minahasa Regency, North Sulawesi that Newmont Minahasa Raya owes taxes on overburden, the waste rock and soil removed in order to access the gold-bearing ore. Newmont's Contract of Work with the government of Indonesia excludes taxes on overburden, a position supported by the Indonesian Department of Mines and Energy (DOME).

On January 22 the Tondano District Court granted the regional government's request for a provisional judgment to shut down the mine. On March 6, the Manado High Court affirmed the decision, permitting the shutdown order that the Tondano court issued today.

Ness further explained that the company recognizes that this is an isolated issue relating to the emotionally-charged politics of the regional government. It does not reflect the investment policies of the Government of Indonesia, particularly the Department of Mines and Energy, which under special ministerial decree, established a joint study team in an attempt to resolve the regional dispute. "The national government has been very supportive. Even the national and regional House of Representatives (DPR) have voiced their support," stated Ness.

"The most important issue right now is for us to talk with employees and the community so that they understand that the company will not abandon them. As for the community programs, they will continue for as long as is feasible. Also, while we hope that the mine closure will be short lived, we expect the Minahasa government's guarantee for our employees' safety as well as that of the assets of the operation." Ness added.

Ness went on to state that the company would prepare a detailed closure plan for the mine and present it to the Government of Indonesia by Thursday, April 13, 2000. "Closing a mine down is a very delicate process. We've got some very hard work to do to ensure that the irrational actions of the Bupati and the Courts in forcing us to close on eight days notice proceeds smoothly," said Ness.

Newmont Mining Corporation, based in Denver, Colorado owns 80% of the Newmont Minahasa Raya mine. ***