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Verdict may affect plans in Indonesia
Published March 20, 2007 at midnight
Newmont expects an Indonesian court to make a final decision on a criminal case against the company and its top executive on April 4.
Chairman Wayne Murdy told the Rocky Mountain News last week that an unfair verdict would force the Denver gold producer to rethink its plans in Indonesia.
The company plans to spend $400 million to $500 million to expand its operating mine at Batu Hijau. It has made another gold discovery in the country that could turn into an operational mine in a few years, involving investments worth hundreds of millions of dollars.
"We'd have to reconsider our investment if we got an unfavorable decision," Murdy said, adding that he wasn't making a threat. "But we are being optimistic about everything."
The criminal case stems from Indonesia's accusation that Newmont dumped toxic waste from a now-shuttered gold mine in Buyat Bay, polluting its waters and sickening villagers.
Newmont and its executive Richard Ness deny those charges, pointing to several scientific studies that found no evidence of pollution. If convicted, Ness could end up behind bars for three years, as prosecutors have requested, and Newmont would be fined thousands of dollars.
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