Irianese oppose PT Freeport's expansion plan
Irianese oppose PT Freeport's expansion plan
JAKARTA (JP): Irianese tribal groups living near PT Freeport
Indonesia's Grasberg copper and gold mine are not letting up in
their opposition to the mining company's plan to increase
production.
Tribal representatives urged the government on Friday to
reject the expansion plan because they believed it would cause
intolerable ecological damage. They contended the firm was unable
to protect the environment even at lower production levels.
"What will happen if they raise ore output to 300,000 tons per
day when they still fail to protect the environment with the
current production level?" Matias, chief of the Ekari tribe, told
visiting State Minister of Environment Panangian Siregar and
several members of the House of Representatives' Commission V for
mines and energy, environment, industry and trade, manpower and
cooperatives.
The minister and the legislative delegation headed by Sunardjo
visited Timika on Thursday through Friday to gauge local tribe
members' opinions on the plan.
They were accompanied by Irian Jaya's vice governor Bram O.
Atururi and Freeport's vice president Agus Kafiar during the
meeting with chiefs of the Moni, Nduga, Dani, Ekari and Damal
tribes.
The subsidiary of U.S.-mining company Freeport McMoRan Copper
& Gold is licensed to produce 160,000 tpd of ore, but is
currently producing above 200,000 tpd as part of its trial
operation to reach the 300,000 tpd goal.
"Those of us living in the highlands are still lucky. How
about those living in the lowlands?" Matias was quoted by Antara
as saying.
He alleged that several members of the lowland Komoro tribe
became ill after consuming fish taken from Freeport's tailing.
There was no explanation concerning the absence of the Amungme
and Kamoro, the largest tribes around Grasberg who are lowland
dwellers.
Amungme's chieftain Tom Beanal told The Jakarta Post late last
month that life in the area was "hellish" under current
production conditions and he opposed any expansion.
Matias modestly advised the minister and House members to
consult with "knowledgeable people" on the plan instead of the
"ignorant" local people.
Freeport recently agreed to raise royalties to the government
in return for the license for its expansion.
It agreed to double its copper royalties from between 1.5
percent and 3.5 percent to between 3 percent and 7 percent. It
also agreed to triple its gold and silver royalties from 1
percent to 3 percent of sales.
The royalty scheme will be backdated to Jan. 1, 1999, but it
only takes effect if Freeport's ore output exceeds 200,000 tpd.
Minister of Mines and Energy Kuntoro Mangkusbroto earlier said
the ministry would not issue the expansion license until
negotiations were completed with the company on protecting the
environment.
Catholic priest Yustinus Rahangiar, who was also present at
the meeting on Friday, said the expansion would provide larger
earnings to the government, but cautioned it was no guarantee of
betterment of the tribes' welfare.
Moni's chief Lazarus Somonaung accused Freeport of failing to
fulfill the promise it made 30 years ago to increase the welfare
of the tribal people.
"Please, look back to the agreement made by the company 30
years ago," he said.
Duga's chief was concerned by the prevalence of alcohol in the
area, which he blamed on the firm.
"Freeport should stop distributing alcohol here since it makes
tribes fight against each other."
Freeport's data show Irian Jaya received an average of US$27.6
million per year in royalties from the company between 1995 and
1997. The amount accounted for about 70 percent of the province's
domestic income. (jsk)