Freeport suit withdrawn

Freeport suit withdrawn

JAKARTA (Reuter): An Indonesian tribal leader said yesterday he had withdrawn the US$6 billion class action suit brought in his name against Freeport-McMoRan Inc. because it was filed by an American lawyer without his consent.

The suit, filed in U.S. District Court in New Orleans on Monday in the name of Tom Beanal, claims the company's subsidiary PT Freeport Indonesia had engaged in "eco-terrorism" and "cultural genocide".

Freeport Indonesia is 82 percent owned by Freeport-McMoRan Cooper and Gold Inc., with the Indonesian government and PT Indocopper Investama each owning nine percent.

"I have withdrawn the suit because I haven't read what has been written by the lawyer, Martin Regan," Beanal, leader of the Amungme Tribal Council, told Reuters. "I sent him a letter three days ago withdrawing the power of attorney granted to him."

Beanal, speaking by telephone from Timika near Freeport's Irian Jaya mine site, said the suit was filed without his consent. But he said he still intends to sue Freeport on environmental issues.

The suit said Freeport's policies had led to human rights violations against tribal people as well as destruction of resources the tribe needs.

It also lists Freeport's mining affiliate Freeport-McMoRan Copper and Gold Inc. of New Orleans as a defendant.

Beanal, known as an outspoken critic to Freeport, asked Regan in the letter to withdraw the lawsuit. Reuters obtained a copy of the letter yesterday.

"We believe the case you have presented has serious problems, including the use of terms such 'eco-terrorism' and 'cultural genocide'," the letter, written in English, said.

"The complaint as written may weaken, not strengthen, our case, and we are not happy with the way in which it was rushed to court without a chance to consult fully with the Amungme people."

The Freeport mine, some 1,870 miles (3,000 km) east of Jakarta, sits on one of the largest known gold and copper reserves in the world.

"There is no basis in law or in fact for the claims," Freeport spokesman Garland Robinette said on Tuesday in New Orleans.

The Indonesian mine's operations have been plagued by allegations of wrongdoing after an Australian activist group accused the company of violating the rights of tribal people near the Irian Jaya mine a year ago.

Tensions have continued to flare. On March 12, three people were killed during riots, which forced the mine to close for 2- 1/2 days.