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SBY: Freeport Papua mine closure not an option JAKARTA - The Indonesian government won't consider a unilateral closure of Freeport-McMoRan Copper & Gold Inc.'s (FCS) massive Grasberg mine in Papua despite allegations of poor environmental management at the facility, President Susilo Bambang Yudhoyono said Monday.

"If we unilaterally close (Grasberg), we'll be taken to the antitrust court (where) we'll certainly lose and we'll have to pay billions of dollars (in legal damages)," Yudhoyono told reporters. Indonesia's Ministry of the Environment last month gave Freeport-McMoRan "two to three years" to improve its management of the millions of tons of waste ore, known as tailings, that are pumped out of the mine each year.

Failure to comply with the order would result in legal proceedings, the ministry said. The ministry's ultimatum followed the results of an investigation by a team of independent experts tasked with assessing whether Freeport's mine was damaging the environment. Yudhoyono indicated that the government was seeking to calm simmering resentment on Papua that has made Freeport's operations a lightning rod of local protests in recent months.

"We will try to solve this case as well as possible so that nobody is hurt," he said, without elaborating. Yudhoyono's comments echo those of other senior government officials who have reiterated that the government will honor the contracts of international companies regardless of public protests against them. Freeport-McMoRan has been a focal point of popular unrest in Papua since February, when the company temporarily suspended mining operations after protesters demanding the right to mine its waste ore blockaded the facility.

A mob bludgeoned to death three police officers and an air force officer last month in Jayapura, 400 kilometers from Grasberg, in a rampage that began as a public protest demanding the mine's closure. The protests reflect public perception in the province that revenues from Freeport-McMoRan's local operations haven't benefited the bulk of poor Papuans, Sidney Jones, project director for the International Crisis Group in Jakarta, said earlier this month.

The New Orleans-based company, which started mining in Papua in 1972 under a 50-year contract, paid $1.2 billion in taxes, royalties, dividends and fees to the Indonesian government last year.


Link to related event Related event:
Papua conflict

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04 April 2006 · Barnabas Suebu named Papua governor
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Posted in PT Freeport @ 17 April 2006 10:10 CET by Jeroen · 'Blog' RSS feed · permalink





Albert
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(Edited) Posted @ 18 April 2006 04:23

Freeport;
10% of all the money made in Freeport goes to Indonesia.
90% of it, to the USA.
Thanks to Shuharto.
*****************************
Majority of employees are expact.
Many others come from Jakarta
The very few come from Papua
So no benifit for Papua people from Freeport
************************************
Shopping facillity prices 50% lower then in Papua itself.
Only for Freeport personal. Which all ive in very luxery houses. Compared to the houses in Papua with a Sink (Metal) roof plate.
*************************************************
Fuel price 15.000 which also seem to be on many other Islands.
*************************************************
When you look above at the 10% and 90% deal.
Why does SBY not stop this. Only because of antitrust court . Is it that simple? How much money does he and others receive from Freeport. This smells like BIG corrution.

"We will try to solve this case as well as possible so that nobody is hurt,"
That is only possible when the locals get a lot more money out of it. Now the receive nothing.

A book about Suharto's Indonesia and a part of it about Freeport.
http://www.insideindonesia.org(...)80/p29-30tonkin.html



AnisJ
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(Edited) Posted @ 18 April 2006 13:04

The way Reeport exploits the
  • Tembagapura area is very pulutive, flying over it by aeroplane makes it all visible; one can say that coastal Papuans are not able, for a long period to harvest anything from the sea, the only benefitor is the Jakartan central gouvernment.
    "Selamat beuntung Jakarta ...... enak, cekeh sekali !!!"
    "Asal porut kenyang ....... ".



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