Amdal on Freeport examined

Amdal on Freeport examined

MAKASSAR, South Sulawesi (JP): State Minister of Environment
Sonny Keraf said his office would audit, and perhaps redo, the
environmental impact analysis (Amdal) of copper and gold mining
company PT Freeport Indonesia as the analysis report contained
several irregularities.

"Based on queries by an auditing team of the Environmental
Impact Management Agency (Bapedal) from the ministry's office, we
found several irregularities in their environmental impact
analysis," Sonny told journalists here on Saturday.

"Thus there needs to be further examination of this matter,"
he said.

The minister said verbal and written answers given by the
company's management had proven insufficient to explain the
irregularities.

The minister did not elaborate on the alleged irregularities
in the report but remarked that they included inconsistencies in
reports on the company's environmental management and
environmental work plan.

He further remarked that there was a lack of a sufficient
tailing disposal system.

"It is these things which must be clarified. That's why we
judge it necessary to repeat an environmental audit," Sonny said.

Environmental groups have long blasted the alleged
environmental degradation caused by the company's operations in
Irian Jaya.

Questions have also openly been raised about the validity of
the environmental audit results of American auditor Montgomery
Watson, which lauded Freeport's environmental protection as
exemplary.

Two commissions at the House of Representatives earlier this
month also recommended a review of the contract of work held by
PT Freeport.

Commission I for foreign and political affairs and Commission
II for home and legal affairs argued that the government received
too small a share of the revenue from the company's operation and
that the deal violated investment regulations and the 1945
Constitution.

After visiting Freeport's operations in Grasberg, Irian Jaya,
several legislators also alleged that the company had contributed
to socioeconomic injustice, rampant human rights abuse and
political tension despite claims by the company that it had
allocated 1 percent of its profit to fund development programs in
the surrounding community.

PT Freeport Indonesia is 81.28 percent owned by U.S. mining
company Freeport McMoRan Copper & Gold with the Indonesia
government and PT Indocopper Investama Corporation each holding
9.36 percent in the company.

Indocopper is 50.48 percent owned by Nusamba Mineral
Industries, which is linked to former president Soeharto.
Freeport McMoran holds a 49 percent stake in Indocopper and the
investing public holds 0.52 percent.

Sonny said the number of complaints from the public on the
impact of Freeport's operations had prompt the audit review, and
that a preliminary review had already indicated that many issues
need to be clarified.

Sonny further remarked that environmental considerations in
the future should be a primary condition when issuing licenses
for companies to operate.

"We can say that development will proceed at about 6 percent,
but if that achievement is calculated with the damage we
encounter from environmental degradation then that number would
definitely drop," he said.

"Maybe to about 3 percent."

"That's why I always say that there's no use borrowing money
from abroad to help us develop, if the results we eventually
achieve will only be used to remedy the environmental damage we
reap," he remarked.(27)