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Jakarta suspends Freeport's explorations

Source
Agence France Presse - June 4, 1999 (abridged)

Jakarta – Indonesian authorities have suspended a mining exploration contract awarded to a subsidiary of US miner Freeport McRoran Gold and Copper Inc. in Irian Jaya, citing political and security concerns, an official said Friday.

PT Freeport Indonesia's exploration contract has been suspended from May 15 to August 15, said Rozik Sutjipto, director general of mining at the mines and energy ministry.

He said political and security reasons were behind the suspension. Two other mining companies were served similar suspension orders. The announcement came ahead of national elections on Monday.

Nine additional companies had their exploration contracts suspended for periods ranging from December 1 last year to February next year, Sutjipto said. Further details on the suspension orders were not immediately available.

Sutjipto said the suspensions of some of the contracts were due to suggestions by the security forces to hold out until after the June 7 election or because the companies themselves felt unsafe.

"The security forces, such as those in Irian Jaya, suggested that during the election it would be better to suspend exploration."

For the other cases, particularly those involving extended periods, the suspensions were imposed because of budgetary problems, Sutjipto said.

State mining company PT Tambang Timah recently announced it would be voluntarily suspending its exploration in certain areas citing the uncertain political climate. Freeport officials were not immediatley available for comment.

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