Independent Scientific Panel

Buyat Bay Background
 
2004
Various non-governmental organizations and the Indonesian Ministry of the Environment alleged that PT Newmont Minahasa Raya (PTNMR), a subsidiary of Newmont Mining, caused adverse environmental impacts and health effects through the use of submarine tailings placement in Buyat Bay at its Mesel Mine in the South Minahasa District of the Province of North Sulawesi, Indonesia.

2005
The Government of Indonesia (GoI) initiated a civil legal action against PTNMR. Based on extensive testing, monitoring and analysis, PTNMR maintained that its Mesel Mine operation had not caused and would not cause environmental pollution or adverse health effects. Both parties agreed that cooperation rather than continuation of civil legal action was the appropriate avenue for ensuring the long-term welfare of local residents and the protection of the environment. As such, the GoI acknowledged that further independent scientific investigation, monitoring and analysis were appropriate to make final conclusions regarding Buyat Bay.

2006
On February 16, 2006 the GoI and PTNMR entered into a Goodwill Agreement in which they jointly committed to environmental monitoring and to support sustainable development initiatives in the area of PTNMR’s former Mesel Mine, including formation of the Independent Scientific Panel (ISP).
 
Goodwill Agreement
 
The Goodwill Agreement’s purpose was to establish a blue ribbon ISP to monitor the environmental condition of nearby Buyat Bay over a ten-year period. The goal of the monitoring is to determine conclusively whether or not there are adverse impacts to Buyat Bay and the local population caused by the Mesel operation. The monitoring is funded by Newmont, with unused funds donated to a local sustainable development foundation.
 
ISP
 
The GoI and PTNMR each appointed three scientists to be members of the six-person panel. The minimum requirement of panel members included: a level of education equivalent to a doctorate level (PhD); be a recognized expert in his/ her scientific field with at least 10 years experience in human toxicology/ public health, environmental geochemistry or marine ecology; and, not currently an employee of either GoI or PTNMR. The primary duties of the ISP are to design the environmental monitoring program, to evaluate the monitoring results, to prepare and present an annual report, and to discuss with the GoI and PTNMR proposed solutions if any Adverse Environmental Impact is determined to have occurred.

In each year of the ten-year program, the ISP has four main tasks:
  1. Creation of a specific monitoring plan;
  2. Collection (through an Indonesian Government Agency) of additional, current environmental data;
  3. Analysis of environmental data; and,
  4. Public reporting of the Panel’s conclusions.
Environmental Monitoring Program
 
A set of principles were formulated by the GoI and PTNMR that specify the manner by which the ISP will carry out its responsibilities. The following provides a summary of the key provisions in these "Guiding Principles".
 
Scope of Monitoring Plan
 
  • The ISP jointly determines the scope of the environmental monitoring program to assess potential impacts from PTNMR’s submarine tailings placement in Buyat Bay, including any studies that need to be undertaken, the field samples to be collected and evaluated, and the frequency of gathering those samples.
  • The monitoring plan as designed by the ISP specifies: environmental samples, data and other information to be collected; the location, method and timing of the sample and data collection; the laboratories that will be used to analyze collected samples; and a statement of the reasons why the samples and data are being collected.
Monitoring Plan Implementation
 
  • Indonesia’s Ministry of Research and Technology (MoRT) is responsible for the data collection program. The MoRT hires independent laboratories and specialists to implement the data collection and sampling program created by the ISP in the monitoring plan. As one of the mechanisms to ensure that there is no question as to the accuracy of the results of the sampling, both the GoI and PTNMR may have representatives present to observe the field sampling and to take duplicative samples for confirmatory analysis. The environmental sampling began in the third quarter of 2007.
Schedule of Activities
 
  • The ten year environmental monitoring plan was initiated in 2007.
  • Under the Goodwill Agreement, the ISP shall hold an in-person meeting each year to review the monitoring activities for the upcoming calendar year and to determine whether the planned activities are appropriate or should be modified by amending the monitoring plan.
  • The ISP’s annual report will include a discussion of the data and information collected during the prior calendar year, along with a summary of all data and information previously collected under the monitoring plan. This annual report will be made available to the public, and the ISP is expected to present the first annual report in a public forum in early 2008 to ensure the transparency of the analysis and data.
Determination of Adverse Environmental Impact
 
  • "Adverse Environmental Impact" means, based on objective scientific data, pollution has occurred as a result of the operation of the Mesel Mine and, in respect of which, specific corrective measures must be taken to remediate the pollution. If this is the case, three or more ISP members must be in agreement that PTNMR’s placement of tailings in Buyat Bay has likely caused the Adverse Environmental Impact and promptly notify the GoI and PTNMR.
  • The GoI and/ or PTNMR may request the ISP members as a group, or individually, provide a report explaining the basis for their conclusion as to whether any Adverse Environmental Impact has occurred. If the GoI and PTNMR determine Adverse Environmental Impact has occurred, they must decide what action is required to address any such impact.
Development Foundation
 
  • A foundation (or Yayasan in Bahasa Indonesian) was created to ensure the funds paid by PTNMR are used only for community development programs and not for environmental monitoring. The GoI and PTNMR are committed to sustainable development in neighboring communities of the closed Mesel Mine. The funds will support programs that provide better health, education and infrastructure for the area, improve local economic conditions and create better job opportunities for the people.
  • The management committee of the Foundation consists of representatives from Indonesia’s central, provincial and regional governments, local residents, and PTNMR.