Freeport's expansion plan to continue

JAKARTA (JP): Mining company PT Freeport Indonesia announced yesterday that it had received approval from the state minister of environment for its regional Environmental Impact Analysis.

The company's president, Adrianto Machribie, said the approval was necessary in order to allow Freeport to expand its milling capacity to a maximum 300,000 tons of ore per day.

"We are pressing ahead with an aggressive construction schedule to meet the company's previously announced objective for increasing mill capacity to at least 190,000 to 200,000 tons per day by mid-1998, and eventually up to a 300,000 tons per day level," Machribie said.

The company said the analysis was first submitted to the Environmental Impact Management Agency (Bapedal) and the Regional Environmental Impact Analysis Commission on Sept. 1 and reviewed and revised by the commission.

The study submitted to Bapedal was the culmination of a multiyear effort to develop an analysis of the impact and benefit of the proposed expansion of the mills throughout, the company said.

The analysis prepared by Freeport Indonesia was termed "the most comprehensive the agency has ever seen", the deputy chairman of Bapedal, Paul Coutrier, said.

According to Freeport, 42 environmental studies had been conducted during the preparation of the analysis, as well as an extensive analysis of the social situation in the area around the mine.

"Freeport Indonesia subjected the major studies to peer review to ensure their accuracy and independence," the company said.

In addition, Freeport Indonesia and its consultants presented the findings of the studies at five workshops on major social and environmental issues, the company added.

Machribie said the expansion to 190,000 to 200,000 tons per day, which was expected to cost approximately US$1 billion, would create economic opportunities in the area.

"In addition to creating more jobs, the expansion of the mill will provide additional funds for social incentives including the Integrated Timika Development Program, as well as generating more royalties for the province and taxes for the central government," he said.

He added the expansion would bring the company's total investment to over $84 billion, with over 16,000 Indonesians employed in mineral exploration and development, and the mining and milling of copper, gold and silver in Irian Jaya. (gis)