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Freeport appreciates Bapedal's comments on audit

| Source: JP

Freeport appreciates Bapedal's comments on audit

JAKARTA (JP): Mining giant PT Freeport Indonesia said on
Friday it appreciated the comments from the Environmental Impact
Management Agency (Bapedal) on its environmental audit although
it disagreed with some of the agency's comments.

"Bapedal's comments and suggestions have been referred to
Montgomery Watson for a detailed response," the company said in a
statement, adding that it would welcome further meetings and
dialogues with Bapedal to resolve the differences.

"This exchange of views is healthy and will enhance the
voluntary environmental audit process," it said.

Freeport, an affiliate of New Orleans-based Freeport-McMoran
Copper and Gold, operates giant copper mines in Grasberg, Irian
Jaya where it has long been accused of environmental degradation.

Last year Freeport hired Montgomery Watson, an internationally
recognized environmental consulting and auditing firm, to audit
the company's environmental management.

The results were publicized early this year and have since
drawn criticism.

State Minister for the Environment and Head of Bapedal Sonny
Keraf said earlier that the publication of the audit results had
been misleading, as Freeport only printed information favorable
to the company.

Sonny said that several recommendations from Montgomery Watson
were not revealed in the publicized version.

Montgomery had recommended Freeport conduct a comprehensive
groundwater study and monitoring, and increase the biological
monitoring of estuaries downstream of the tailings deposit area
to gauge impact upon mollusks.

It also suggested Freeport modify and update its mining
abandonment plan for the entire project area, including the
tailing deposit area.

Sonny's office said at least 10 points in the publicized
report needed verification including the statement that all of
Freeport's activities in Irian Jaya had met national and
international mining standards.

This statement conflicted with Bapedal findings earlier this
year that Freeport's liquid tailing waste discharged in the
Aghawagon River and the Wanagon River exceeded industry
standards, Sonny said.

Doubts have also been raised by environmentalists as to the
validity of the audit report.

Freeport, said that since the publication of the findings, a
series of meetings have been held with representatives from
Bapedal and Montgomery, and additional information has been added
to the report in response to Bapedal's review.

Freeport President Adrie Machribie said in the statement
received on Friday that Freeport would hire qualified experts to
carry out a voluntary audit of the company every three years.

"We believe it is a good process ... and we will continue to
work with Bapedal to strengthen the process, so that the next
voluntary audit we undertake in 2002 will be an even better
product," he said in a statement. (10)

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