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