UT Watch on the Web

Freeport Expenditures

The following are probably Freeport press releases, describing some of its vast economic and charitable expenditures in Irian Jaya (West Papua). It has been estimated that Freeport's operation may represent half of the GDP of all of Irian Jaya (West Papua)! -- rsb


From: cscheiner@igc.apc.org
Date: 28 Aug 1997



                          AN: Three from Freeport
                          =======================


        1]      Title:  PT FREEPORT DISBURSED US$1 BILLION 
                        FOR INDONESIA OPERATION IN 1996
                Date:   August 12, 1997


        Jayapura, Irian Jaya (West Papua) - The American  copper mining company, 
        PT Freeport Indonesia, in 1996 has disbursed a total of 
        US $ 1,070,025,877 for its mining operations in the province 
        here.

        Freeport vice president for public relations, Augus Kafiar, 
        in Kuala Kencana, Freeport's mining site in Timika, on Monday 
        said that the fund disbursement constitutes direct benefits 
        of copper mining activities by the company for payment of 
        operating expenses like salaries, food and beverage, services, 
        and community development.

        Funds for operating cost totalled US $ 887,014,134.

        Apart from it, the company also paid US $ 18,275,400 for 
        dividends and tax, as well as royalties to the government 
        totalling US $ 164,736,333.

        The amount, he added, does not include indirect benefits 
        from the mining activities in the form of infrastructure 
        constructions like airport, seaport, roads, electricity, 
        clean water, telecommunications, education, and health, 
        among others.

        All the infrastructures and facilities that have been 
        constructed will be returned to the government when mining 
        activities are terminated, he said.
        --------------------
        

        2]      Title:  FREEPORT PROVIDES US $ 10 M 
                        FOR HEALTH CARE IN TIMIKA
                Date:   August 10, 1997


        Jayapura - PT Freeport Indonesia, one of the world's biggest gold 
        and copper mining company, has started donating US $ 10 million  
        annually for the health care of the population in the mining
areas.

        The firm's vice president Augus Kafiar said in Timika Saturday  
        US $ 6.5 million of the fund will go to the Tembagapura hospital, 
        and  US $ 3.5 million will be spent on the prevention and control 
        of malarian and other contagious diseases.

        He said the Tembagapura hospital was actually exclusively built  
        to serve the company's employees, but since the health care 
        services provided by the government were still inadequate, the 
        hospital is now also open to people living in the mining areas.

        The medical services provided to the general public are not only  
        of equal quality as that given to Freeport employees, but are 
        also free of charge.

        Freeport also built a modern clinic in Banti village serving
people 
        from remote and isolated places and providing medications and  
        equipment to the public health centre in Timika.

        Freeport also provides flying doctors for emergencies in places  
        far from Tembagapura, Banti and Timika.
        ---------------------------------------

        
        3]      Title:  FREEPORT RESERVES US $51 MLN 
                        FOR WASTE DISPOSAL MANAGEMENT
                Date:   August 6, 1997


        Jayapura  - PT Freeport Indonesia, the Canadian (sic!) foreign 
        investment company engaged in copper mining, has earmarked 
        US $ 51 million each year to finance a waste treatment and 
        environmental preservation management programme, a company 
        official said.

        Freeport's manager for environment matters, Wisnu Susetyo in 
        Kota Kuala Kencana, Timika sub-district, Irian Jaya (West Papua), said 
        recently the company's objective in having several environment 
        management programmes is to preserve and conserve the environment 
        around the mining site.

        The company did not like being accused of having neglected the 
        development of the region and the environment around the mining 
        site.

        The main programmes currently undertaken include a waste 
        overburden management programme worth US $ 8 million per year, 
        a tailing waste management programme along the Ajkwa river of 
        US $15 million/year, an environmental observation programme and 
        a tailing accumulation reclamation area that is no longer active 
        costing US $ 18 million/year, and a study on environmental 
        problems in cooperation with domestic and overseas environmental 
        consultants amounting to US $ 10 million/year.

        These amounts do not include the costs of managing solid and 
        liquid waste, humus management at mining sites, operational 
        costs to recover unused mining sites so as to prevent acid 
        concentration and  water purification activities of the Wanagon 
        Lake.