North Sulawesi Governor opposes Toka Tindung gold project

The North Sulawesi Provincial Government has opposed the operation of PT Meares Soputan Mining (MSM) who operates Toka Tindung gold mine in North Minahasa regency fearing that the company's mining activities would damage the environment.

Speaking during a hearing with the House of Representative (DPR) last weeek, North Sulawesi Governor Sinyo Harry Sarundajang said that his office had formally sent a letter to the State Minister of Environment to convey the local government's decision to reject the environmental impact analysts (AMDAL). With the rejection of the AMDAL documents, the company would not be able to continue its operation.

Sarundajang said that the AMDAL documents which had won approval from the Jakarta environmental authority were not significant enough to protect the environment around the company's mining site which is located near the Likupang marine conservation area and the protected Tangkoko forest area.

"We are not against foreign investors but the people needs environmentally friendly investment," he told the hearing. He said that based on the local government's study, the company's mining waste disposable system had the potency to destroy the important species in the marine and forest conservation areas.

Sarundajang was insulted by most of lawmakers attending the hearing but he convinced them that this decision has been thoroughly discussed. He asserted that the project will threaten the adjacent Tangkoko Nature Reserve, Likupang beach, and marine tourism spot knowned in international diving community as Marine Biodiversity Triangle.

JATAM's investigation revealed that the project posses huge risk to local water supply as it plans to consume more than a million liters of water each day for its gold processing. Not to mention, water needed for silver processing, workers' drinking, and waste management.

The other risk of this project is regarding with safety issue. Toka tindung project is located on hilly area where thousands of people live downhill. The placement of large tailing dam, open pit mine, and waste rock dumping in area prones to volcanic and tectonic earthquakes will put the lives of the poeple in danger. Just recently on January 23, 2007, North Sulawesi hit by earthquake at 5.7 on Richter scale. Last year in November, the neighboring mount Soputan erupted and poured million cubic of lava and dust, and caused earthquake. Worldwide, there are 221 incidents of tailing dam failure caused by nature (earthquake, storm, heavy rain) and human error.

In its resurgence after taken over from Aurora Gold in 2002, Toka Tindung project received massive opposition since early 2006 by thousands of fisherfolk and tourism community fearing the mine's pollution to their livelihood. This project is backed by 4 large international banks, i.e: NM Rotchilds & Sons (UK), West LB (Germany), ANZ (Australia), and Societe Generale (France). Those banks are bound with several multilateral commitment aiming to implement the sustainable development principles within project financing such as the Equator Principles and the UN Financial Institutions Statement on Sustainable Development. However in fact, they invested their money in project that will demolish local environment and put an end to thousands of people's livelihoods.

(adapted from various sources by widyantoa)