Freeport lets govt verify its green audit

Freeport lets govt verify its green audit

JAKARTA (JP): Gold and copper miner PT Freeport Indonesia said
here on Wednesday it would welcome any governmental response to
the publication of an audit praising the company's environmental
management system.

Freeport vice president for environmental affairs Bruce E.
Marsh said here the company disclosed the results of the audit
voluntarily, and it was open for anybody and any institution for
response.

If necessary, he said, the government or the Environmental
Impact Management Agency (Bapedal) could verify the audit, which
was conducted by international independent environmental
engineering firm Montgomery Watson.

"If they want to verify the audit, if they want to investigate
Freeport, if they want to send their inspectors to our site,
Bapedal can do whatever they need to do to evaluate Freeport's
performance.

"If they want to hire their own auditor, they can do that
also. It's their job to make sure that companies following laws
in Indonesia," he said.

Marsh was responding to concerns expressed by State Minister
of the Environment Sonny Keraf earlier this week that Freeport
should not have announced the results of the audit without having
first verified them with Bapedal.

Montgomery Watson's audit described Freeport's environmental
management system as "a showcase for the mining industry", citing
the company's compliance with existing environmental laws and
regulations.

Freeport announced the results of the audit in late December
1999, and placed advertisements containing the executive summary
of the audit results in various publications last month.

The audit results were announced amid reports that Freeport's
tailings had contaminated mollusks, a food source for locals, in
the nearby rivers and destroyed mangrove forests.

Freeport, an affiliate of New Orleans-based Freeport-McMoRan
Copper & Gold, has long been blamed accused of environmental
degradation around its mining site in Grasberg, Irian Jaya.

The announcement of the audit results and the placement of the
advertisements by the company apparently displeased Keraf, who
threatened to begin a drive to counter Freeport's publicity
campaign.

The chairwoman of the Indonesian Environmental Forum, Emmy
Hafild, supported Keraf's stance, and said the audit could not be
fully trusted because it was conducted by an auditor appointed
and paid by Freeport.

She said the environmental report by Montgomery Watson was
subjective, pointing to the fact that it mainly revealed
information which benefited Freeport.

"How could it be accurate and true if the audit itself was
funded by Freeport and performed by a company which was appointed
by Freeport," she said.

She said a number of industrial companies, including Freeport,
focused more on generating revenue than reducing the impact of
their operations on the environment.

Emmy said Keraf should be supported to ensure that companies
gave more attention to environmental protection.

Freeport's Marsh said Keraf had requested PT Montgomery Watson
Indonesia explain its environmental audit of Freeport's
operations to Bapedal later this week.

"After that meeting, they will determine whether it's
necessary to verify the audit, or to have another investigation,
or another audit, or whatever," Marsh said, adding that he did
not see any reason why the government should be upset by the
announcement of the audit results.

Montgomery Watson chief operating officer Alan J. Krause said
the public should regard the audit results impartially. Besides
praising Freeport, the auditor also presented 24 recommendations
for the company to improve further its environmental management
system.

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

It also suggested Freeport modify and update its mining
closure plan for the entire project area, including the huge
tailings deposit area.

"It's Indonesia that needs to make sure that Freeport
addresses all these recommendations," Krause said. (rid/cst)