Freeport to continue investment

Freeport to continue investment

JAKARTA (JP): The cancellation of PT Freeport Indonesia's
political risk insurance does not affect its commitment to
continuing investment for mineral exploration in the country, a
company director, Adrie Machribie, said yesterday.

The Overseas Private Investment Corporation (OPIC) of the
United States last month decided to cancel Freeport's US$100
million political risk insurance due to environmental problems.
The company is a subsidiary of the U.S.-based Freeport MacMoran
Copper and Gold Corp.

Adrie told reporters yesterday that his company, which has
invested $3.5 billion for copper and gold exploration and mine
development in the easternmost province of Irian Jaya, will not
change its production capacity while its dispute with OPIC is
being discussed by the American Arbitrary Association.

"We hope the result of the discussion will be produced next
month," he said.

Adrie said his company, which currently has a mining
concession of 2.6 million hectares, needs a minimum investment of
$1 billion for exploration.

He acknowledged that Freeport Indonesia has not recovered its
investment for its activities in Irian Jaya.(04)