JATAM | Mining Advocacy Network

On 26 February 2010, Archipelago Resources PLC / Australia - announced the soon published of around 102 million shares for 0.3 pound sterling per share. They were trying to raise around Rp. 459 billion of fund to finance its gold mine in Toka Tindung, North Sulawesi. The mine had been having controversies, starting from its waste risks which would be dumped into the sea, the out of date EIA up to the rejection of thousands of fishermen to the mining operation plan. Now, Archipelago Resources the owner of PT Meares Soputan Maning (MSN) and PT Tambang Tondano Nusajaya (TTN). The London AIM listed company planned to hold its share public offering on 4 March 2010.

We call upon the public to not buying the shares of Archipelago Resources PLC / Australia because this project was too risky for its shareholders and it threatened the safety of the people and environment surrounding its mine. There were at least five reasons why the Tika Tindung project shares were considered too risky:

First, the project had been strongly objected by the people of North Sulawesi. The people, including the local fisherman's community, fishing industry, tourism industry, environmental communities and the people who live near the tailing dumping locations were facing the biggest risk. The majority of the people strongly rejected the operation of this gold mine. On December 2009, the Coastal People Alliance who rejected the tailing wasted had filed a law suit to the Minister of Environment, asking for the approval of the Environmental Impact Assessment to be revoked because it had breached some government regulations.

Second, the issuance of Environmental Impact Assessment had breached two Indonesian laws. on 5 October 2009, former Minister of Environmental, Rahmat Witoelar had signed the EIA, even though he had repeatedly stated that he would not give the permit for Toka Tindung. It happened on the last five days of his tenure as a Minister and three days after the Law no. 32 year 2009 on the Environmental Protection and Management was affirmed.  By giving his signature, Witoelar had breached two valid regulations in Indonesia: the EIA approval should be authorised by a governor of a province, it was not a ministerial authorisation.  He gave his signature based on a revoked and invalid government regulation.

Third, the history of Indonesian mining operations was full of human rights violations. The company's security force had been recorded to attack peaceful rally conducted by the local people, and injured some of them. On July 2006 a few thousand fishermen and fish farmers performed a peaceful rally demanding Archipelago Resources to call off the gold mine and leave North Sulawesi. On their way home, the rally participants were attacked by some people who were known as members of PT MSM security force. Some of the participants suffered grave head injuries and a seven-month-pregnant woman was miscarried. This case was never seriously investigated. As was stated by the vice governor Freddy Sualang which was quoted by Komentar daily newspaper (4 October 2006 Edition): “It cannot be that people who peacefully demonstrate are terrorized in their aspirations.”

Fourth, the project could create a threat to the people’s economy. Because Toka Tindung was located in a densely populated area, the mine could create a dangerous contamination threat to the near surrounding villages. The tailing mud waste leak could be a real threat for the Rinondoran Bay, which was the heart for local fishing industry. North Sulawesi province economical pillars were tourism, fishery and farming. The three pillars would bear the worst damage with the lost of thousands of works with the operation of Toka Tindung, which would create some occupations for only a few hundreds people during the mine’s life span, which calculably would only last for eight years at the most.

Fifth, the project held a lot of threats for the environment. The area harbored some of the most bio diverse and most fragile ecosystems in the world, a lot of uniqueness could be found in the area. Tangkoko and Dua Saudara environmental sanctuary, which were directly on the other side of the mining area, were the place for all kinds of rare birds, mammals and reptiles species. Archipelago would mine the gold at Toka Tindung using cyanide solution, which was feared to infiltrate the groundwater system. The development of tailing dam would also be risky because this concession area was widely known to be affected by earth quake and frequently affected by volcanic disasters. That was the reason why nobody could guarantee that the toxic waste would not enter the ecosystem, especially within as corrupted and inefficient business environment as the one in Indonesia. This project would also create an adverse impact to the local water supply, because a gold mine required water in a vast amount. Therefore it created a threat to the fresh water supply for the international harbor city of Bitung which was the heart of North Sulawesi province.

So, if you are interested in buying the share on this project, please reconsider your position and please call off any consideration you had for buying the share of this project which created a threat to the environment and the safety of the people.[ ]

Media Contact

Luluk Uliyah, JATAM, HP. 0815 9480 246
Berry Nahdian Furqon, WALHI, HP. 0812 511 0979
Riza Damanik, KIARA, HP. 0818 773 515
Yull Takaliuang, YSN, 0813 4001 7722
Didi Koleangan, AMMALTA, 0813 4014 7722