Operations at Batu Hijau Continue Normally During Demonstration

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Oleh Administrator

Rabu, 13 April 2011 19:49

BATU HIJAU, Tambangnews.com.– PT Newmont Nusa Tenggara (PTNNT) announced that operations continued normally today at its Batu Hijau copper and gold mine during a second demonstration organized by the government of Kabupaten Sumbawa Barat (KSB).

KSB is engaged in an effort to force the Central Government to allow the Regency to acquire the final 7% divestiture stake in PTNNT and has threatened to disrupt operations at Batu Hijau in order to pressure the Central Government to give in to KSB's demand.

Vehicles, workers and supplies were able to enter and leave the site today without interruption. Police maintained public safety and ensured the approximately 60 protesters remained orderly and peaceful.

“The KSB government’s dispute is with the Central Government, not PTNNT and its workers," said David Lilley, PTNNT’s General Manager of Operations. "As stated in our Contract of Work with the government, the foreign shareholders of PTNNT must offer the remaining 7% divestiture shares for 2010 to the Government of Indonesia, which they have done. PTNNT does not control or decide who is allowed to purchase the shares. The decision, at this point, resides solely with the Central Government.

PTNNT contributes significantly to the national, regional and local economy through taxes, non-tax fees and royalty payments which amounted to a total of Rp5,76 trillion or US$651 million in 2010 alone. PTNNT also spent US$125.3 million in employee payroll, of which 63% are recruited locally from within the Nusa Tenggara province and the majority of those employees from the West Sumbawa district. In addition, the company spent US$31.8 million in local purchases and contracts, and US$7.5 million in community development projects.**

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