Newmont Mining in Indonesia

Group Members

• Rahul
• Siddarth
• Pulkit
• Astik
• Mayank
 Introduction
What the case is about?
• Newmont mining and the various issues it faced by
mining in Indonesia.
• The key political problems faced by Minahasa Raya
Mine, a company owned by Newmont Mining,
Colorado, USA, in Indonesia.
• How the legal irregularities in the Indonesian legal
system increased the company’s problems.
• The environmental dimensions to gold mining in
Indonesia, and,
• How Mr Lahiti approached the company’s problems.
 Indonesia Fact File
• Population: 221,932,000
• Capital: Jakarta; 13,194,000
• President : Susilo Bambang Yudhoyono
• Area: 1,922,570 square kilometers (742,308 square miles)
• Languages: Bahasa Indonesia, English, Dutch, Javanese, and other
local dialects
• Religion: Muslim, Protestant, Roman Catholic, Hindu, Buddhist
• Comprises of 17,000 islands, out of which only 6,000 are inhabited.
• Most population resides in the island of java, which has the city of
Jakarta, its capital.
• Per Capita Income : $3,700 (2005 est.)
• Independence day : 17 August 1945 (independence proclaimed); 27
December 1949 (Netherlands recognizes Indonesian independence)
• Supreme Court or Mahkamah Agung -Highest Legal body
Newmont Gold mining in Indonesia
 Gold Mining in Indonesia
• Indonesia boasts of a rich endowment of natural resources, including considerable
deposits of crude oil, natural gas, tin, copper, coal and gold. 

• The United States Geologic Survey indicates that Indonesia’s total estimated gold reserves
are approximately equivalent with those of the United States; however, in 2009,
Indonesia produced less than half the total of gold compared with the United States. 

• With Grasberg Mine the biggest, PT Newmont, which controls two mining firms, is the
second biggest copper and gold miner in Indonesia.

• PT Newmont Nusa Tenggara (PTNNT) is the operator of The Hijau copper-gold mine,
which is located on the island of Sumbawa, and it represents a joint venture between
Newmont Mining (45%), Sumitomo Corporation (35%) - collectively 80% and local partner
PT Pukuafu Indah (20%).

• The second, in which Newmont holds an 80 percent interest in the Minahasa gold mine
through PT Newmont Minahasa Raya. An Indonesian company, PT Tanjung Serapung,
holds the remaining 20 percent.