Gold Threatens North Sulawesi
The proposed Toka Tindung gold mining project may pose a threat to marine environments in the North Sulawesi (Manado, Lembeh, Gangga, Bangka, etc.) that divers around the world treasure.
The environmental impact study for the project (which has been approved) allows for disposal of toxic tailings and other associated materials at sea.
Based on negative experience with a similar project in Buyat Bay by Newmont corporation from the US, local residents and conservation groups have reacted strongly against the likelihood of marine pollution from the proposed Toka Tindung project, which is backed primarily by UK-listed Archipelago Resources. Despite these concerns and questions surrounding the validity of the environmental impact study (AMDAL), construction on the mine has commenced.
The mine is projected to produce 160,000 ounces of gold per year for six years, and dump an estimated 1.2-1.7 million tonnes of waste into the sea annually (about 6-8 million tonnes over the six-year life of the mine). This waste will likely contain cyanide, arsenic and heavy metals.
Financing for the project is being led by N.M Rothschild & Sons (Australia) Limited, with Australia and New Zealand Banking Group, Societe Generale, and WestLB AG rounding out the group of four banks providing a US$38.5 million debt with US$4.0 million cost overrun facility.
Read on for a recent press release from the North Sulawesi Watersports Association on this issue:
Press Release — North Sulawesi Watersports Association
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 140 metres 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 150 metres or 200 metres depth). Were the current studies accurate and are the results of these studies actually included in the modelling? Did MSM properly model the behaviour 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 hundreds of metres 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.314 billion 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 recognised as a province with excellent potential for development of an eco-tourism sector. If the marine environment were 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.