CEO’s “Lawful, Greener” Claim Sparks Civil Unrest 💥

🏝️ The Murky History of the Sangihe Gold Mine

Tucked within a remote chain of small volcanic islands at Indonesia’s northernmost edge where the archipelago meets the Philippine Sea, the Sangihe Gold Mine stretches across 42,000 hectares of ridges and forested slopes.

The current owner of the mine, Canadian company Baru Gold, is listed on the TSX Venture Exchange—a secondary stock exchange in Toronto—which provides public access to its corporate filings and project disclosures, including their corporate past.

The story began on 27 April 1997, when PT Tambang Mas Sangihe (TMS) received a Contract of Work (CoW) — a special mining license signed by the President of Indonesia 🖋️. This type of agreement was designed for large, foreign-backed projects and allowed TMS to operate under national authority instead of the local government (bupati) 🏛️.

But just weeks later, the project came to an abrupt halt. The issue arose not from Sangihe itself, but from Busang in East Kalimantan, 1,800 kilometers away. There, Bre-X Minerals, the Canadian company behind TMS, had falsely claimed to discover a massive gold deposit 💰. The discovery proved nonexistent, becoming one of the largest frauds in Canadian mining history.

When the truth emerged, the company's chief geologist died in a suspicious helicopter crash 🚁, sending shockwaves through the market and later inspiring the Hollywood movie Gold, starring Matthew McConaughey 🎬.

An outraged President Suharto promptly revoked Bre-X's mining access across Indonesia, including Sangihe. The Sangihe project became collateral damage in the Busang scandal.

⚖️ Legal Limbo in a Changing Regulatory Landscape

While Bre-X remained tied up in lawsuits in Canada, Indonesia was already changing its mining laws. The 2009 Mining Law replaced the old Contract of Work (CoW) system with a new licensing regime (IUP) that required stronger environmental protections and community involvement. Existing CoWs, like Sangihe’s, could still be used—but only if updated to meet these new rules.

In 2016, a new group of investors revived the Sangihe project. With 70% foreign ownership and 30% local participation, the CoW was reactivated and remains valid until 2027, with an option to extend twice for 10 more years. Terry Filbert, a mining executive with years of experience in Indonesia, became the new CEO.

Even though the CoW is still legally binding, it must now follow all post-2009 requirements. That includes getting environmental permits, consulting local communities, and managing ecological risks. With Sangihe being a small island chain with sensitive ecosystems and local fishers who rely on the sea 🌊, the bar for compliance is especially high.

📺 The BBC Interview That Lit the Fuse

In 2021, progress accelerated when the Energy and Resources Ministry (ESDM) granted TMS approval to move from exploration to production—a crucial regulatory step in activating the 1997 Contract of Work.

Shortly after, Vice Regent of Sangihe, Helmud Hontong, sent a letter of protest to the central government opposing the project and made it public. And in an unexpected tragic twist, Hontong passed away on his flight from Bali to Makassar.

Then came the infamous 2021 interview on BBC—still available on its YouTube channel—where Filbert appeared confident, perhaps too confident, as he defended the Sangihe mine. He portrayed it as both legally sound and economically transformative, promising “millions and millions of dollars” in revenue and projecting several thousand ounces of gold per month. He painted a bold vision of prosperity: 5,000 to 6,000 direct jobs and 30,000 indirect ones over a mine lifespan of 32 to 33 years

But critics were not convinced.

Local activists and environmental groups warned that the mine could devastate protected forests, threaten endemic bird habitats, and damage coral reefs. Filbert countered that TMS was operating legally under a valid CoW, had secured its environmental permits, and was committed to minimizing its ecological footprint. He claimed that areas above 750 meters—home to sensitive wildlife—were both off-limits by law and geologically irrelevant, as no gold deposits existed there.

Throughout the interview, Filbert contrasts TMS with what he describes as problematic operations on Sangihe—particularly Chinese-owned firms and local illegal miners, who he alleges use mercury, destroy mangroves, and dump waste directly onto coral reefs. He argues that, as an American- and Canadian-backed venture, TMS adheres to higher environmental standards than those competitors.

Filbert also frames the fierce local opposition not as a grassroots environmental movement, but as a campaign driven by vested interests. He suggests that the widespread media attention and organized protests are being "bankrolled" by illegal miners and a specific political figure aiming to disrupt his company’s legitimate operations so they can resume their illicit activities.

In a moment that drew widespread attention, Filbert addressed the letter from the late Vice Regent of Sangihe, Helmud Hontong. He dismissed Hontong's resistance as politically motivated and called the letter "amusing," claiming that the deputy regent had no authority to stop the project. Filbert went further, suggesting that Hontong had actually enabled illegal mining by advocating for open access to the area.

Far from calming tensions, the interview only intensified public scrutiny.

📌 Key Takeaways

One key takeaway from the Sangihe dispute is this: even when a company is convinced it has followed the rules, there is often a missing piece of paperwork that can bring everything to a halt. In this case, it was the requirement under Indonesia’s small islands law to obtain approval from the Ministry of Marine Affairs and Fisheries. Terry Filbert was confident that TMS had complied with the law, but the Supreme Court disagreed. This highlights a recurring theme for anyone doing business in Indonesia’s complex regulatory environment — compliance is not just about ticking boxes, it’s about knowing which boxes exist in the first place 📄.

Is this the end for TMS? Not necessarily. The Supreme Court only annulled the ministerial decree that approved the production phase, but it did not cancel the underlying Contract of Work signed in 1997 🗂️. That contract remains valid, meaning TMS could, in theory, return to the government with a revised and complete application that includes all the necessary permits and consultations.

Then came a twist. In December 2024, TMS announced a new shareholder and chairman: Hashim Djojohadikusumo, the billionaire brother of President Prabowo Subianto, through his Arsari Group 🦅. This surprise move adds a new political dimension to the project and raises fresh questions about how it will proceed. In a recent public statement, the company reaffirmed its commitment to responsible mining.

Still, on the island of Sangihe, many residents and environmental groups remain skeptical — watching closely to see whether future steps will bring real compliance, or just more controversy 🔍.

Source: 

• East Asia Minerals Corporation, Independent Technical Report of Sangihe Property Prepared by Caracle Creek International Consulting Inc (September 2010)

• BBC Interview, Kontroversi Tambah Emas di Pulau Sangihe

• Supreme Court Decision 650/K/TUN/2022