Wed, 06 Sep 1995

Freeport commissions environmental audit

JAKARTA (JP): Giant American copper mining company PT Freeport Indonesia has commissioned two U.S.-based consultancy firms to conduct independent environmental studies of its operations in Irian Jaya.

The two companies, Labat-Anderson Incorporated of McLean, Virginia, and Dames & Moore Indonesia, a branch of the Los Angeles-based company of the same name, were picked from 10 applicants, Freeport said in a statement released yesterday.

The studies have been commissioned at a total cost of US$500,000, which will be fully borne by Freeport. Between them, they will include assessment of rural development in Timika, the town where Freeport's operations are based, as well as environmental, economic and cultural aspects, the statement said.

The move is part of the company's effort to preserve a habitable environment for the local people and to prevent any health hazards which the copper and gold mining activities might cause to the local people, the statement continued.

"Dames & Moore will perform the environmental audit and Labat- Anderson will perform the social audit, with completion dates estimated for the first quarter of 1996," the statement added.

Freeport said the qualifications of the two firms met the criteria set out by the Environmental Impact Management Agency (Bapedal) and the Ministry of Mines and Energy.

Independent

In separate statements, also issued yesterday, the two companies said they would work independently and could not be dictated to by Freeport. The results should be publicly announced next April, they said.

Freeport's environmental practices have been questioned by some local non-government organizations. The Indonesian Forum for the Environment (Walhi) is currently pursuing action in the Jakarta State Administrative Court against the Ministry of Mines and Energy for accepting Freeport's environmental impact management plan in spite of objections from the group.

There have been reports recently that Freeport's area of operations has been the site of a number of clashes between the military and the local people. The National Commission on Human Rights and the Army have launched separate investigations into the reports, according to which at least 17 civilians were killed.

The military has said that there have been clashes between soldiers and rebels of the Free Papua Movement in Timika.

Paul Murphy, a director of Freeport, denied yesterday suggestions that his company had anything to do with the clashes.

Murphy also denied that Freeport's operations in Timika had excluded the local people.

"Since our first operation in the 1960s, the number of locals living in Freeport's area has increased from 600 to 60,000 people at the moment," he said, adding that Freeport contributed significantly to the improvement of the local people's welfare.

Separately, State Minister of Environment Sarwono Kusumaatmadja defended Freeport yesterday in the face of accusations that it is neglecting its social and environmental obligations.

He said Freeport was working to solve some of the problems associated with the environment.

"But there are some people out there who would continue to pick on its mistakes, and would not be content even if it has made amends," Sarwono said. "They are seeking to profit from the situation." (03/05)