Newmont reaches agreement with Minahasa regency
Wednesday, April 19 2000 - 09:06 AM WIB
Following is the statement issued by the Ministry of mines and Energy on the agreement between PT Newmont Minahasa Raya and The Minahasa Regency:
"In the connection with the dispute between PT Newmont Minahasa Raya (PTNMR) and the Minahasa regency administration, the ministry of mines and energy, the Minahasa regency administration, the Minahasa regency council and the members of the house representatives and PTNMR in the spirit of cooperation have held intensive talks over the past several days.
Today, the Minahasa Regency administration and PTNMR signed an agreement witnessed by the Ministry of mines and energy and the Minahasa regency.
Details of the agreement are as follows:
1. All parties will uphold the law No. 18/1997, the by law on the C-Class products and the contract of work between the Indonesian government and PTNMR.
2. As the implementation of the point 1:
(a) PTNMR will pay US$ 500,000 in overdue taxes on the C-Class mining product used from 1995. The c-class mining products include those used to build and maintain the roads linking PTNMR's site and the port used by the company.
(b) A foundation will be established with the purpose of developing the Minahasa regency, which will be managed by the Minahasa regency administration, PTNMR and the representatives of the public (stakeholders). PTNMR will provide the foundation US$1.5 million in starting capital, which will be considered as the foundation's asset.
(c) PTNMR will allocate US$ 1 million per year for three years in funds for community development.
3. Minahasa regent will withdraw the lawsuit filed against PTNMR in the Tondano District Court.
It should also be mentioned that the agreement indicates that the ministry of mines and energy, the Minahasa regency administration, the ministry of home affairs, the House of Representatives, the regency council, and PTNMR are all partners in promoting the national and regional interests and are always ready to implement the evolving aspiration of the public. This is in line with the spirit of compromise of the Indonesian people incorporated in the article 23 of the Contract of Work. (*)