BHP clarifies

BHP clarifies

In order to avoid misinterpretation of BHP activities, I must
correct several inaccuracies in the article Compensation demand
in The Jakarta Post on Sept. 29.

Firstly, BHP is not a U.S.-based nickel mining company but a
diversified minerals and petroleum resources company with
headquarters in Australia. Also, BHP is not currently a
participant in the nickel mining industry but is currently
evaluating a number of nickel deposits in several countries,
including that of the Gag island deposit in Irian Jaya.

It should be stressed that BHP's activities in respect of the
Gag Island Project are still only in the exploration phase, and a
decision as to whether mining will be feasible will not be
possible for a number of years. The Gag Island Project is being
conducted under a 7th Generation COW issued in February 1998 to
BHP and to Aneka Tambang, which has a 25 percent interest. BHP
has responsibility for managing the project.

We are currently consulting with local community leaders and
government on a range of issues, covering both land usage and
also community affairs. There is a standard procedure within the
company to take such an open and co-operative approach.
Furthermore we already have a number of community activities in
train, working with the inhabitants on the island.

We are also co-operating with all parties to reach mutual
understanding about: the correct status of current landholders,
land claims resolution and the issue of compensation payments, in
line with normal procedures for the companies who commence mining
operations. The company and the inhabitants have recently stepped
up their level of dialogue on all of these matters. Under the
direction of the Bupati (Regent) office, a formal consultative
forum has recently been set up, which should prove constructive
and beneficial for all parties concerned.

Please do not hesitate to reconfirm all information concerning
the progress of the Gag Island Project with the BHP office in
Indonesia, so that reports about BHP projects in Indonesia can
be published accurately. It is our commitment to bring benefits
to all communities where we work, and to support accurate press
coverage of our activities.

HARRIET RICHARDS

President Director

BHP Indonesia

Jakarta