Minister backs audit on Freeport<\/p>\n
JAKARTA (JP): A just-released audit commending the
\nenvironmental management of mining giant PT Freeport Indonesia
\nreceived the backing of State Minister of Environment Sarwono
\nKusumaatmadja yesterday despite the fact it has yet to be
\nverified by a government study.<\/p>\n
During a media briefing to announce the results of the
\nenvironmental audit, Sarwono said the verification team \"would
\nnot encounter any trouble\" and that \"it was just a formality.\"<\/p>\n
According to the minister of environment's decree No. 42\/1994,
\nenvironmental audits must be studied and verified by the
\ngovernment.<\/p>\n
The audit was conducted by Dames and Moore, a worldwide
\nenvironmental consultancy established nearly 60 years ago.
\nFreeport commissioned it in September to study the technical
\nenvironmental issues of the company's activities in Irian Jaya.<\/p>\n
Freeport operates one of the biggest copper and gold mines in
\nthe world in Timika, Irian Jaya.<\/p>\n
Asked why he was so confident with the audit, Sarwono pointed
\nto Dames and Moore's credibility and reputation.<\/p>\n
\"It would be foolish for them to tinker around with it,\" he
\nsaid.<\/p>\n
When pressed if the government would conduct its own audit on
\nFreeport's environmental program, Sarwono asked -- given Dames
\nand Moore's elaborate and proficient work -- \"why should we do
\nmore?\"<\/p>\n
Dames and Moore's project sponsor, Ros Kelly, said that until
\nrecently Freeport did not give high priority to environmental
\nmanagement. It was more reactive than proactive, said Kelly, a
\nformer Australian environment minister.<\/p>\n
This initial slowness, according to the audit, \"led to
\nnegative perceptions of PT Freeport Indonesia on the part of the
\npublic and government regulators.\"<\/p>\n
This has changed, Kelly insisted, claiming that Freeport is
\nnow moving towards implementing \"a best practice in environmental
\nmanagement\".<\/p>\n
\"It has a way to go but now has the management leadership and
\ncommitment to succeed,\" she added.<\/p>\n
The audit also determined that Freeport \"in all material
\nrespects\" is complying with government regulations, she said.<\/p>\n
Tailings<\/p>\n
The most controversial issue addressed by the audit is the
\ndisposal of tailings, a process considered to have the most
\nimpact on the environment.<\/p>\n
The Indonesian Forum for Environment (Walhi) has accused
\nFreeport of dumping toxic tailings into the nearby Ajkwa River.<\/p>\n
The audit stated that while the tailings in the river are an
\n\"unsightly and unwelcome sight, particularly to the indigenous
\nhighlands people,\" they were found to be nontoxic.<\/p>\n
To remedy the long-term negative effects that might occur from
\ntailing disposal, Freeport is currently building a tailing
\nstorage area using two levees known as the Ajkwa deposition area.<\/p>\n
PT Freeport Indonesia's director, Paul Murphy, said the
\ncapital expense for the project is US$25 million, with an
\nestimated maintenance cost of $12 million a year. The
\nconstruction of the disposal area is expected to be completed in
\nDecember.<\/p>\n
Regarding natural resource conservation and recovery, the
\naudit found the mine's cutoff grade of 0.85 percent copper in the
\nsediment high by world standards.<\/p>\n
Nevertheless, Kelly explained that the audit team could accept
\nFreeport's rationale for setting such a high cutoff rate and
\nadded that it will be decreased to 0.6 percent by 2002.<\/p>\n
Dames and Moore conclude that the retreat of the Puncak Jaya
\nglaciers is \"consistent with the effects of global warming and is
\nnot related to PT Freeport Indonesia's activities.\"<\/p>\n
It went on to say that a risk of significant loss of
\nbiodiversity was not found by the audit team.<\/p>\n
In the area of waste management, the audit found that Freeport
\nhas only concertedly addressed this concern in the past two
\nyears. While endorsing the company's initiatives, the audit also
\nrecommended that potential liabilities from past activities be
\naddressed.<\/p>\n
The audit further recommends Freeport prepare a mine closure
\nplan.<\/p>\n
Paul Murphy expressed confidence that the audit refutes much
\nof the misinformation circulating about Freeport.<\/p>\n
When asked what groups like Walhi would think of the very
\npositive audit, Minister Sarwono responded that the report was
\nnot meant \"to shut anyone up\".<\/p>\n
\"If they want to continue (criticizing) then go ahead,\" he
\nsaid, adding the audit is aimed at \"convincing everyone that
\nFreeport is an environmentally conscious company\".<\/p>\n
A second audit on the social impacts of PT Freeport, being
\nconducted by Labat and Anderson, is due to be released next
\nmonth. (mds)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/minister-backs-audit-on-freeport-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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