Protests Erupt in Papua Over Freeport's Gold Mine

Protesters in the remote province of Papua targeted a hotel and set a car on fire after being unable to meet with a representative of US gold mining company Freeport-McMoRan Copper & Gold Inc. The demonstration occurred in the town of Timika, near the company's massive Grasberg gold mine, which has been the subject of several protests in recent weeks. Local residents have been claiming that the mine has not brought benefits to the community, a charge Freeport has denied.

Key Takeaways:

• Over 40 indigenous Papuans participated in the protest, which resulted in the destruction of a hotel and a car.
• The protest was sparked by the protesters' failure to meet with a Freeport representative they believed was staying at the Sheraton Hotel.
• The Grasberg gold mine, operated by Freeport, has been the subject of several protests in recent weeks, with local residents demanding greater benefits from the mine's operations.
• Freeport was forced to temporarily shut its mine last month after demonstrators blockaded a road, demanding to sift through the mine's waste ore.
• The protesters' demands include greater benefits and involvement in the decision-making process regarding the mine's operations.
• There have been allegations that the mine has not brought benefits to the local community, which Freeport has denied.

Statistics:

• 40+ indigenous Papuans participated in the protest.
• 1 car was set on fire during the protest.
• The Grasberg gold mine is said to be the world's largest.
• Freeport-McMoRan Copper & Gold Inc.'s (FCX) stock price was $60.02 on 02-07-2006.

Sources:

• Dow Jones Commodities News Select via Comtex, March 14, 2006
• Dow Jones Newswires, March 14, 2006
• Comtex SmarTrend (SM) Alert, March 10, 2006