Manado, MPI): MORE importantly it typifies the misleading rhetoric which is occasionally printed about the PT. MSM Toka Tindung Gold Project. Unfortunately it is clear that such emotive statements are commonly made by individuals without clear intention, moreover their own apparent agendas.
The Toka Tindung Gold Project AMDAL is an issue which is in the hands of government authorities, where it belongs. There has been no special treatment of PT. MSM and in fact the company has patiently endured months of delays at great financial cost in respect of due process.
The revised AMDAL is the product of input from many expert parties and stakeholders and has been subject to scrutiny well beyond what is required under the relevant laws, guidelines and regulations of the Republic of Indonesia.
Furthermore the AMDAL and the Company’s operational procedures have been subject to extreme scrutiny by independent experts for banks and funding parties to ensure the project complies with Equator Principles. This is in itself positive as PT MSM is endeavoring to operate to the highest standards and demonstrate continuous improvement to stakeholders.
The statement that “the majority of the population around the mine living in Batuputih, Rinondoran, Pulisan and Kalinaun reject the project development”, demonstrates the author to the Jakarta Post article has a lack of familiarity with such communities.
There are in fact 11 communities within the immediate area, all of equal importance and all with aspirations for improvement to their livelihoods and community. Similarly the project provides benefits to the broader community of Minahasa Utara, in which PT MSM has been active for nearly 20 years and already contributed in excess of $US100million in good faith towards the goal of developing a safe and beneficial business in the region. The project will contribute much greater benefits in the years ahead.
There is in fact broad support of 75-80% of the community people and independent studies to prove this is the case. The rejection by minority parties, including some NGO's, does not represent the position of the whole community. Therefore, the community have expressed their rejection to such LSM’s and individuals in petitions and letters to government, as they want livelihoods and a relationship with a safely operated company, not individuals who talk a lot and deliver little tangible benefits to their communities.
The footprint of the Toka Tindung Gold Project is small and open pits affect only several hectares of land which has been legitimately purchased and which is not actively farmed.
The company will partially back fill pits where possible and also develop wetlands and permanent water sources for farming once the operation is complete/rehabilitated. In fact the Company already has contributed to progressive rehabilitation and planting of native trees via community teams which obviously provides employment.
Fish have already been established in company dams which discharge to streams and hence increase stocks of fresh water fish for the communities to catch. Efforts of rehabilitation will regenerate areas without existing trees that have been cleared for farming and this is happening before the company even starts production.
The company has acquired in excess of 17,000 coconut trees via land acquisitions. Such plantations are now farmed under contract by the local communities and given the recent Kopra price, this is providing a direct and well managed income stream to communities.
The mine will have very little rock (<8%) which contains and acid producing effect and this will either be put under water as back fill in pits where it came from and or sealed in waste dumps, prior to these waste dumps being rehabilitated and covered in sustainable farming and forest.
The concentrations of heavy metals at the project are very low, not toxic and hence it is a rather unique gold deposit which has already been eroding into streams for centuries.
The environmental effects of the project were considered during the AMDAL evaluation and it is clear that the operation does not threaten local coastal communities as implied in the Jakarta Post article.
The company actually supports local fishing businesses and purchases hundreds of kilograms in fish weekly from local fisherman, which PT MSM employees consume. Surely this is an example not only of the project benefits but of beneficial mulitplier effects that can be expected via support of sustainable business projects.
Furthermore as part of the ongoing obligations for the Company to be a good corporate citizen and a contributor to the regions development, environmental programs are being supported in national parks and marine conservation reserves located within the region.
Such programs include establishing education facilities for local children on the environment and support for eco-tourism. The company has also previously stated it’s intent to provide funding to environmental programs linked to the World Ocean Conference, if it occurs in Manado.
Thus, let us come and join in by providing direct and tangible contributions to the community in Minahasa Utara and not just provide words of negativity that do nothing to improve peoples livelihoods and or the environment.
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Dear Sirs
We have noticed a comment posted on http://invesmentsociety.blogspot.com/ relating to the issue of a gold mine operated by PT Meares Soputan Mining (PT MSM), which is attempting to start excavating in North Sulawesi Indonesia.
The NSWA (North Sulawesi Watersports Association) refutes the claims made by PT MSM. Please see attached a relevant press release from the NSWA to this effect, which we hope you will also post on your site as a matter of urgency.
Thank you in anticipation of your cooperation is presenting the other side of this story to the public,
Yours faithfully
Jim Yanny
Promotions Officer
North Sulawesi Watersports Association (NSWA)
www.divenorthsulawesi.com
PS: The original Press Release is available in MS-Word Format with letterhead.
Press Release
06 July 2006
Regarding new developments and activities of the mine under the joint management of PT. Meares Soputan Mining (MSM) and PT Tambang Tondano Nusajaya (TTN) in Toka Tindung, North Minahasa District, North Sulawesi, the North Sulawesi Watersports Association (NSWA) is concerned about the potential for significant long-term negative environmental, social and economic impacts to our industry and region. NSWA is not convinced that the process to review and make a wise and fair decision is ready and we are advocating for the Government to define and implement a fair and open process on this issue. A letter already sent by the Ministry of Environment to PT MSM/PT TTN suggests that their AMDAL might not be valid and that it is therefore in need of review.
Several of MSM’s claims regarding the scientific study conducted for its AMDAL have been challenged by respected scientists:
MSM claim no. 1
“The Lembeh Strait current data from our information also travels from Sth to Nth and hence this mitigates the possibility of any effect on this important marine area….”
Scientists who have extensive knowledge of currents in and around the Lembeh Strait completely disagree with this statement, as do the local dive operators who have extensive knowledge of the sea conditions in the Strait.
MSM claim no. 2
“The chemical analysis of the tailings discharge is in compliance with the highest environmental standard in Australia and Indonesia, so the tailings will be as clean as can be. The solid components of the tailings has a chemical content which is equivalent to samples of sea floor muds taken in the area”.
The NSWA asks what exactly it is about the chemical content that matches the seafloor muds - does the amount of heavy metals and their chemical species match them? Also, what about the "liquid” component of the tailings? (If that is full of heavy metals that quickly absorb to the solids and then sink to the bottom, this negates MSM’s whole premise.)
MSM claim no. 3
“Sediment won’t come above 140m from the detailed modeling completed to date…..The near surface currents are more complex especially near shore and hence why the tailings must be discharged at depth.”
It would be logical to assume that the deep currents are also complex, unless MSM can show us that it has valid data from deep current monitoring (ie, current meters installed at 150m or 200m depth). Were the current studies accurate and are the results of these studies actually included in the modelling? Did MSM properly model the behavior of what is in essence a tailings “emulsion” (super finely ground sediment suspended in water)? Did it take into account the known upwelling in the area - is this addressed at all in the model? Did it address the issue of "biological upwelling", whereby deepwater plankton could be contaminated from tailings exposure and then bring this contamination back up to the surface food chain when they do their daily vertical migration from 100's of meters depth to the surface at night?
If MSM’s study is shown to have been conducted in an inadequate way, then their AMDAL is undermined and they would not be able to prove that their operation would be environmentally sustainable. In this case, the NSWA believes that a more comprehensive study of this detailed modelling would have to be conducted by an independent scientific review and we would urge the government to delay granting MSM an operating permit until that new study is completed.
The socio-economic argument against mining in North Sulawesi
MSM justifies its planned location for the STDs by saying that it is “principally a fishing area”. Even if this were the case, it should be noted that fishing already contributes hundreds of billions of Rupiah each year to our economy. MSM states that “the Toka mining operation should run from between 6-8 years….. “, which means that the earning potential of the mine, however great, is limited. If a mine operating in North Sulawesi were to damage the marine environment, the potential for the sectors of fisheries to continue to contribute to the province’s economy could be lost for generations to come, so the mine, whilst offering a short-term benefit, could harm our economy in the long-run. We know from previous experience that even a perception of a degraded marine environment will lead to catastrophic losses in the fishing community (North Sulawesi’s fishing industry sustained losses of over Rp.314B between 2002 and 2003 as a direct result of the rumour that there was mercury in the fish).
But the area in question is not principally a fishing area – it is extremely rich in rare and exotic species, has already undergone tourism investment and is earmarked for further development. It has long been recognized as a province with excellent potential for development of an eco-tourism sector. If the marine environment was damaged, the ability for that sector to survive or grow would also be thwarted. Indonesia is committed to the principle of environmentally sustainable tourism, so the NSWA asks the provincial government of North Sulawesi to come to the protection of its existing investors in the tourism sector.
The environmental argument
North Sulawesi’s marine environment contains many species that are on the endangered species list e.g. coelacanth. As the confirmed host of the World Ocean Summit in 2009, North Sulawesi has a responsible to the international community to protect those species.
“There needs to be good work done on looking at the sustainability of the livelihood of people in this area along with preserving the reef environments.”
(PT Meares Soputan Mining, 08 June 2006)
What is the NSWA?
The NSWA is an association of 20 dive tourism resorts and operators who cooperate to develop tourism services, diving safety and environmentally-friendly practices in North Sulawesi and to promote the province as a tourism destination. Any licensed dive operator is welcome to join, whether foreign or Indonesian. The NSWA believes in working closely alongside the local fishing community to sustain North Sulawesi’s marine environment, as both communities use the sea to gain their livelihoods. The NSWA is neither a government department nor environmental agency and, contrary to some beliefs, does not manage the Bunaken National Park.
www.divenorthsulawesi.com
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