Freeport loses insurance<\/p>\n
WASHINGTON (AFP): A federal agency has canceled US$100 million
\nin political risk insurance for a gold mining project in
\nIndonesia operated by the U.S-based Freeport McMoran Copper and
\nGold Corp, The New York Times said yesterday.<\/p>\n
The decision by the Overseas Private Investment Corporation
\n(OPIC) responded to environmental problems with the project,
\nsources who have been following the issue told the daily.<\/p>\n
The cancellation of the insurance, meant to compensate a
\ncompany if it loses assets because of terrorism, sabotage, a coup
\nor other political volatility, was effective midnight Tuesday,
\nthe daily said.<\/p>\n
An OPIC spokeswoman refused to provide the daily with the
\nreasons behind the cancellation, while a spokesman for New
\nOrleans-based Freeport said his company was disturbed by the
\nmove.<\/p>\n
\"We believe OPIC lacks a legal basis for canceling the
\ncoverage,\" said Gregg Probst.<\/p>\n
\"Therefore,\" he added, \"we believe the coverage remains in
\neffect, and we will operate on that basis pending a resolution of
\nthe dispute, which has been submitted to arbitration, as provided
\nby our contract with OPIC.\"<\/p>\n
The cancellation, which was rumored for nearly two weeks, came
\ndespite intense lobbying efforts by Freeport officials, including
\nformer secretary of state Henry Kissinger, who sits on Freeport's
\nboard.<\/p>\n
The issue was also discussed by President Bill Clinton and
\nIndonesian President Soeharto, when they met last week at the
\nWhite House, following the United Nations' 50th anniversary
\ncelebration.<\/p>\n
A Jakarta court on Monday rejected a suit filed by a leading
\nenvironmental group against the Indonesian mining ministry over
\nits approval of a mine extension built by Freeport's subsidiary
\nPT Freeport Indonesia.<\/p>\n
Walhi has repeatedly accused Freeport, which operates a huge
\ngold and copper ore mining concession of 2.6 million hectares
\n(6.42 million acres) in Indonesia's easternmost province of Irian
\nJaya, of polluting local rivers and of damaging the local Amungwe
\nand Komoro cultures.<\/p>\n
The company has also been under public scrutiny following
\nreported killings in and around its area of operations.<\/p>\n
Last year, the Australian Council of Overseas Aid alleged that
\nFreeport security guards had been involved with the military in
\nthe torture and killing of 37 local people.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/freeport-loses-insurance-1447893297",
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"sponsor": "Okusi Associates",
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