Freeport suit withdrawn

Freeport suit withdrawn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he had withdrawn the US$6 billion class action suit brought in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"I have withdrawn the suit because I haven't read what has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.