Company
PT MEARES SOPUTAN MINING (TOKA TINDUNG PROJECT) PLANS TO DESTROY RINONDORAN BAY AND LOCAL COMMUNITIES’ LIVELIHOODS - WITH YOUR MONEY?

Recommendation: AVOID!

The Australian mining company Archipelago Resources is developing the Toka Tindung gold mine in North Sulawesi (Indonesia), which will make use of the sub-sea tailings disposal method (STD). Investing in this mine development involves the following major risks:·

• A review conducted by the Ministry of Environment concluded the Environmental Impact Assessment Analysis (EIA) of the company is not in order. It recommends to the Minister of Minerals and Energy Resources to halt the company’s operations until a new EIA has been approved (With official letter No. B-6308/MENLH/12/2005 the Minister of Environment recommend to the minister of Mineral and Energy Res. To halt PT MSM’s operation). If the company’s operations are halted, it will not be able to service its debts or pay dividends.
• The company will be using second-hand machinery, increasing the risks of production stops and there will be a high potential of contamination which will have to be compensated for
• The company operates in an area with high and unique biodiversity, including a designated UNESCO World Heritage Site. This is against the Indonesian Constitutional Court decision of 7 July 2005, which allowed only six mining companies to operate in protected forests. International environmental and nature conservancy organizations will hold investors publicly accountable if the sub-sea tailings disposal results in severe environmental damage
• Sub-sea tailings disposal threatens fishery and tourism which dominate the local economy. Already one civil lawsuit has been filed against the company by the local Paradise Hotel - the first trial took place in January 28, 2006. Investors could also be held accountable for investing in a project that will devastate the livelihood of thousands fisherfolks.