Freeport signs agreement with Indonesian tribes

Freeport signs agreement with Indonesian tribes

NEW ORLEANS (AP): Freeport-McMoRan Copper & Gold Inc. said
Monday it has signed an agreement setting up a trust fund for
original tribal inhabitants of the area around the Grasberg mine
in Indonesia.

The agreement was signed by the New Orleans-based firm, its
mining affiliate, PT Freeport Indonesia, and community leaders
from indigenous groups of Irian Jaya, Indonesia, according to a
Freeport-McMoran news release.

"Under the agreement, PT-FI will fund US$500,000 per year to
the trust and will initially provide $2.5 million representing
funding for 1996 through 2000," the news release said.

"The Amungme and Kamoro tribal leaders expressed a desire for
an equity ownership in PT-FI's operations in Irian Jaya and
intend to use a portion of the funds to buy shares of FCX in the
public market to be owned and held by the trust."

The Grasberg mine in West Papua province, is the world's
largest copper and gold mine.

Its operation has been a contentious issue for many West
Papuans who have claimed they are not benefiting from mine's
profits. Many have said in the past that the mine has caused
extensive damage to the environment - a charge the company
vehemently denied.

The signing of the agreement is the latest evidence of an
improving relationship between Freeport and the tribes.

Thom Beanal, chairman of an Amungme organization known as
LEMASA, was quoted in the Freeport release as saying the new
agreement benefits all parties.