Freeport to stop limestone import

JAKARTA (JP): PT Freeport Indonesia (FI) will stop limestone imports from Australia and some Middle East countries to cut foreign exchange spending, Antara reported yesterday.

The company's environment department manager, Wisnu Soesetyo, was quoted by Antara in Timika as saying that the company spent at least US$8 million per year to import the limestone.

He said the money did not include limestone purchases from Java.

According to Wisnu, the purchase of limestone and shipping cost the Irian Jaya-based copper producer $200 per ton.

The company, which also produces gold from its mine in Grassberg, Irian Jaya, needs at least 100 tons of limestone everyday. Limestone is used in the copper decomposition process and soil acidity neutralization.

Freeport Indonesia began building its limestone processing plant in Tembagapura earlier this year. The plant, which will use local limestone, is expected to begin production at the end of the year.

Wisnu said the company would stop buying limestone from other provinces if the Tembagapura plant could meet the limestone demand.

PT Freeport Indonesia is 80 percent owned by Freeport McMoran Copper and Gold of the United States, with the remaining 20 percent owned by the Indonesian government and Nusamba, a company controlled by foundations chaired by President Soeharto.

Freeport has operated in Irian Jaya since 1973. (08)