http://www.thejakartaglobe.com/business/nnt-workers-slam-batu-hijau-mine-closure-threat/432553
NNT Workers Slam Batu Hijau Mine Threat Muhamad Al Azhari, Faisal Maliki Baskoro & Fitri | March 31, 2011 A PT Newmont Nusa Tenggara worker walks past a lake formed at the bottom of the company's massive Batu Hijau copper mining pit in Sumbawa. About 4,000 NNT employees and 3,000 contractors and subcontractors stood to lose their jobs if the mine shut down. (Bloomberg Photo) Threats from the West Sumbawa government to close down Batu Hijau, one of the world's largest gold and copper mines, drew angry reactions from workers on Wednesday. Newmont Nusa Tenggara, the local unit of the US mining giant, operates the mine, which produced 88,000 ounces of gold and 269 million pounds of copper last year. The regional government has threatened to close the mine on April 19 if it is not allowed to buy the last 7 percent of the shares to be divested by NNT. The central government has also laid claim to the shares, valued at $271.6 million, and said it had the right of first refusal under NNT's working contract. "Just because Sumbawa regency is having a dispute with the central government doesn't mean we should bear the suffering," said Muhammad Syahril, chairman of Newmont's labor union in Indonesia. He said 4,000 NNT employees and 3,000 contractors and subcontractors stood to lose their jobs if the mine shut down, adding that the union would hold a demonstration against the regional government. The union hopes for a peaceful resolution, according to Syahril, and has sent letters to a number of government officials, including President Susilo Bambang Yudhoyono, the labor and manpower minister, the West Nusa Tenggara governor and the Regional Representatives Council (DPRD). "We hope all the parties in the dispute will also consider our fate," he said. The message of peace likely did not extend to the West Sumbawa government, which plans to mobilize 2,000 officers from the public order agency (Satpol PP) to seal the mine. "We cannot resist the local people's determination. We are ready to seal the mine and deploy Satpol PP there. That would be better than letting people make chaotic moves to occupy the mine," West Sumbawa spokesman Najamuddin Amy said. Najamuddin said the local government was preparing to send a permanent closure order. "If Newmont is gone, we are ready to operate the mine," he said, claiming there were many firms interested in helping the local government operate the mine. A local organization calling itself the People's Movement to Close the Mine threatened to occupy the mine if West Sumbawa did not have a chance to purchase NNT's shares. "We promise we will not do things against the law. It will be a peaceful movement, but we will ensure our hopes are answered," said Sadik, the group's coordinator, claiming 1,800 people had signed up for the cause. NNT is required to divest 51 percent of its shares to national entities as part of its contract with the government. In 1986, it sold 20 percent to local miner Pukuafu Indah. In 2009, it sold 24 percent to Multi Daerah Bersaing, a joint venture between three local governments - West Nusa Tenggara, Sumbawa and West Sumbawa - and Multicapital, a unit of Bakrie Group's Bumi Resources. Finance Minister Agus Martowardojo and Energy Minister Darwin Zahedy Saleh denounced the move last week. Agus said it set a bad precedent for foreign investors confidence, while Darwin warned West Sumbawa not to go against the law. Aji Wijaya, a lawyer specializing in mining, said the local administration had no right to deploy Satpol PP and stop Newmont's operations. "Newmont signed a working contract in 1986 with the central government and the contract was approved by the House of Representatives. That meant the contract had legal power similar to the law." [Non-text portions of this message have been removed] ------------------------------------ Post message: [email protected] Subscribe : [email protected] Unsubscribe : [email protected] List owner : [email protected] Homepage : http://proletar.8m.com/Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/proletar/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/proletar/join (Yahoo! ID required) <*> To change settings via email: [email protected] [email protected] <*> To unsubscribe from this group, send an email to: [email protected] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
