Freeport signs agreement with local people
Freeport signs agreement with local people
NEW ORLEANS (Dow Jones): Freeport-McMoran Copper & Gold Inc.'s PT Freeport Indonesia mining affiliate has signed a memorandum of understanding with Lemasa, the Amungme people's organization, and Lemasko, the Kamoro people's organization, regarding socioeconomic resources, human rights, land rights and environmental rights.
The company said in a statement on Friday the agreement establishes a limited liability company owned by Lemasa and employing local Papuans, which will undertake local maintenance and related projects in the company's deposition area.
The agreement also provides an agriculture, aquaculture and animal husbandry project to be located by the company's Indonesia affiliate deposition area, sponsored by the company with a "substantial" share ownership by Lemasa and Lemasko.
The project will provide an agricultural base for the Timika area as well as develop agricultural skills for the local people. Freeport Indonesia also agreed to construction of an office building for Lemasa and houses for the tribal elders.
Additional projects are under discussion between the parties. The memorandum was mandated by a traditional council meeting and is the culmination of five years of meetings, initially facilitated by the Indonesian Human Rights Commission.
The memorandum's term extends to the end of the life of Freeport Indonesia's mining operations. A series of contracts are expected to follow, which will implement the terms of the memorandum.
The purpose of the memorandum is to improve the quality of life of the Amungme and Kamoro communities and to ensure they "fairly benefit" from the company's operations; to improve the appreciation of human rights and "respect for the dignity and understanding of the culture" of the Amungme and Kamoro communities and others in the company's operations area; and to improve the quality of the environment in the company's operations area.
Lemasa and Lemasko will be responsible for working to ensure that programs implemented under the memorandum achieve their aims, and will stay "in open communications" with the company and mediate disagreements between the company and the local community.