Indonesian President Defends Freeport McMoran's Mining Activity Amid Environmental Concerns

Indonesian President Suharto has defended the extension of Freeport McMoran's work permit in Irian Jaya, citing the company's significant investment and revenue contribution to the country. Despite criticism from environmentalists, who claim that the mining activity is causing massive damage to the region's ecology, Suharto emphasized the importance of the project for Indonesia's economic development. The Freeport-owned Grasberg mine has been in operation since 1973, with the company investing billions of dollars in the project. However, environmentalists have raised concerns about the ecological cost of the mining activity, including the destruction of alpine meadows and the potential extinction of endangered endemic species.

Key Takeaways:

• Freeport McMoran's Grasberg mine in Irian Jaya has been operational since 1973, with the company investing billions of dollars in the project.
• The mine is a significant source of revenue for the Indonesian government, with Freeport paying billions of dollars in royalties and taxes.
• Environmentalists have raised concerns about the ecological cost of the mining activity, including the destruction of alpine meadows and the potential extinction of endangered endemic species.
• The Indonesian government, under Suharto's leadership, has defended the extension of Freeport's work permit, citing the company's significant investment and revenue contribution to the country.
• International environmental activists have accused Freeport of causing significant environmental problems, including polluting local rivers and damaging indigenous cultures.
• The Overseas Private Investment Corp. canceled a $100 million insurance policy on the mine in 1990 due to concerns about the risk of loss of investment due to political changes.

Statistics:

• Freeport has invested billions of dollars in the Grasberg mine since its opening in 1973.
• The mine produces over 100,000 tons of tailings per day, which are dumped directly into nearby rivers, causing flooding and damage to forests and indigenous hunting grounds.
• The Indonesian government has granted Freeport a mining concession of 6.42 million acres (2.6 million hectares) in Irian Jaya.
• Freeport pays billions of dollars in royalties and taxes to the Indonesian government each year.
• The Overseas Private Investment Corp. issued a $100 million insurance policy on the mine in 1990 to cover the risk of loss of investment due to political changes.

Sources:

• Indonesia National News Agency (Antara)
• PT Freeport Indonesia
• Indonesian Forum for the Environment
• Overseas Private Investment Corp.
• Washington reports, November 1990.