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)