FED:Goldminer should be investigated: Greens

AAP General News (Australia)
12-28-2011
FED:Goldminer should be investigated: Greens

CANBERRA, Dec 28 AAP - The Australian Greens have called on the federal government
to investigate the activities of a gold explorer in Indonesia after anti-mining demonstrations
resulted in two deaths.

Arc Exploration on Monday halted operations at its planned Bima project in East Sumbawa
after two people were killed and 10 others injured in Christmas Eve clashes between police
and protesters from Lambu village in West Nusatenggara province.

It was reported police fired after the villagers blockaded the port of Sape and burned
a number of buildings.

The company, which is listed on the Australian stock exchange, on Wednesday described
its exploration activities at Bima as minor, involving a small number of geologists conducting
field work such as soil sampling and trenching.

"The objective of this exploration work is to better understand the geology and mineral
potential of the area, which currently is undefined," it said in a statement.

"There is no goldmine existing or under construction, nor is any goldmine presently
contemplated."

However, Greens acting leader Christine Milne said the Department of Foreign Affairs
and Trade should investigate to determine whether Arc had played any role in the events
leading up to the clashes.

There were "legitimate questions" for Arc to answer, she said in a statement.

"Do they have now, or have they ever had, paid relationships with Indonesian police
or military for onsite security?"

Senator Milne drew links between Arc and two other companies - Newcrest Mining and Freeport.

The senator said Arc employed John Carlile as managing director because of his experience
with Newcrest Mining operating in Indonesia.

She said Newcrest admitted in 2004 it had paid Indonesian security forces to manage
its site in Indonesia.

She also said an Arc board member was from Freeport, operator of a controversial mine
in West Papua that had a similar relationship with the security forces there.

"Up to now, the Australian government has turned a blind eye to payments to police
and military by Australian mining companies in Indonesia, treating it as cost of doing
business," she said.

Arc said it works closely with local communities and has been in consultation with
the local government about its activities in Bima since early this year.

"Arc regrets the loss of life and injury that was suffered during the events of 24
December," it said.

"Arc's activities and staff have no connection with the port of Sape, and any suggestion
that Arc was involved with Saturday's events at Sape is incorrect."

The company said it remained in full compliance with all legal, regulatory and licence
requirements.

The anti-mining demonstrators are calling for a revocation of the exploration licence
under which Arc operates. They fear the goldmine project will destroy their land and threaten
forests and water resources.

Indonesian authorities are believed to be investigating the weekend's events.

AAP dmc/klm/tab/sn

KEYWORD: ARC 2ND UPDATE

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