February 16, 1996

From: Emmy Hafild, Program Coordinator for Special Issues, Wahana Lingkungan Hidup Indonesia (Indonesian Forum for Environment), Ji. Mampang Prapatan XV/41, Jakarta 12790, Indonesia, Ph. 62-21-799-4394, 794-1672, Fax. 62-21-794-1673, Walhi@nusa.or.ind.

To: James D. Wolfensohn, President, Multilateral Investment Guarantee Agency (MIGA), 1818 H Street, Washington, D. C. 20433

Dear Mr. Wolfensohn,

We are writing to you regarding Freeport McMoRan Copper & Gold mining operations (PT Freeport Indonesia) in Irian Jaya (West Papua), Indonesia. Freeport's operation in Irian Jaya (West Papua) has affected the environment and the local indigenous people. Persistent protest against the operation from the local indigenous people has caused serious human rights violation for more than 20 years. Environmental impacts caused by the operation are obvious, among others are river siltation and sheeting of the river bed caused by tailings, killing of tropical rainforest and sago trees, and signs of acid mining drainage around the over burden piles.

MIGA is involved in Freeport's operation in Irian Jaya (West Papua) through its political risk insurance. Therefore, MIGA is responsible and can play a paramount role in mitigating the environmental impacts, maximizing the environmental protection, minimizing waste and most importantly in improving human rights condition (rsb: sic), including recognition of the local indigenous people's rights.

We recommend the following:

1. MIGA should strictly require that Freeport Indonesia's operation is in compliance with the principles of best mining practices, these are: zero waste, establishing an enclosed waste management system, maximizing environmental rehabilitation, recognizing and respecting the indigenous people's rights which include their civil and political rights, their access to natural resources, their rights to clean environment, their rights to the information about Freeport's mining activities and their impacts, as well as involving local community in decision making process. MIGA has to assure that Freeport Indonesia will not let their facilities to be used in the acts of human rights violations.
2. MIGA should ensure the transparency and accountability of PT Freeport Indonesia's environmental and social impact assessment, the environmental management and monitoring program as well as the social and community development program.
3. In respect to the above matters, we request MIGA to support the establishment of an independent assessment team consists (rsb: sic) of independent experts in the field of environment, sociology and human rights, anthropology and indigenous people's affairs. We recommend that the formation of independent team, its scope of work and the term of references are to be widely consulted (rsb: sic) with the local NGOs and the affected community.
4. MIGA should release its contract with Freeport and other related documents to the local communities and NGOs in Irian Jaya (West Papua).

We believe that you, as the President of MIGA and the World Bank Group, will take the matters seriously. If you wish, we, NGOs from Jakarta and Jayapura are willing to discuss the matters with you in an effort to solve the problem as soon as possible.

Thank you very much for your attention,
Sincerely,
Emmy Hafild

(cc. list of 14 people not included here)

The foregoing was typed by Robert S. Boyer (rsb) from a copy received from Lori Udall.