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Lawmakers target Freeport bosses

Source
Jakarta Post - June 2, 2006

Tb. Arie Rukmantara, Jakarta – Lawmakers should summon top Freeport executives to explain the alleged environmental damage and human rights abuses at the firm's Grasberg mine in Papua, a team of legislators says.

Speaking Thursday at the House of Representatives, legislators sent to monitor the mining giant's activities in Papua urged House Speaker Agung Laksono to summon PT Freeport Indonesia president commissioner James R. Moffett and other top management from Freeport's US parent company to a House hearing.

Tjatur Sapta Edy, the secretary of the House working committee on Freeport, said Thursday the request had been submitted to the House leaders and Agung was expected to decide on it next week.

Moffett, one of the richest men in America, heads the board of directors of the New Orleans-based Freeport McMoRan Copper and Gold Inc. Tjatur said the working committee wanted to hear Freeport executives' response to allegations made by NGOs and community groups about environmental damage at the mine site.

Environmentalists have said Freeport's disposal of millions of tons of mine tailings around its mining area has destroyed the ecosystem of a river and polluted groundwater.

The House was also concerned about accusations the company had hired soldiers from the Indonesian Military to guard the mine. Activists allege soldiers working for Freeport committed human rights abuses against the native Papuan population in the area.

PT Freeport management has denied the human rights allegations and said the company's operations were in compliance with all the country's laws.

Tjatur said the committee had concluded the government must revise its current working contract with Freeport to create a more equal profit-sharing arrangement, to provide more funds for local community development programs and to reduce the environmental damage the mine caused.

"Our main goal is to persuade the government to renegotiate the contract," he said.

Personally, Tjatur said he would like to see the government increase its share in the mine to 50 percent. Currently the government has over 9 percent stake.

"We want to hear what the company's executives have to say about the idea." The most recent contract was signed in 1991 and allows the company to exploit minerals at Mount Grasberg near Timika until 2021.

PT Freeport spokesman Siddharta Moersjid said he had not received any information about the planned summons but was optimistic his bosses would cooperate.

"Basically, we have cooperated, and will always cooperate with anyone here to continuously improve our performance," he told The Jakarta Post.

"But since I have yet to receive any notification from the House, I can't provide information about whether our top executives can meet its request."

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