Freeport's expansion plan to continue

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)