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)