Analysts criticizes Freeport for small contribution, tailing

A noted analyst said on Tuesday the revenue received by the Indonesian government from copper and gold mining company PT Freeport Indonesia which operates a huge copper and gold mine in Irian Jaya was too small, Satunet reported.

Arief Arryman, an economist of consulting company Econit, said the Indonesian government thus far only received revenue from Freeport's operations in Indonesia, and got nothing from the trading of the company's shares in the New York Stock Exchange.

Speaking during a hearing with the House of Representatives' Commission VIII for mines and energy, Arief said Indonesia should get a portion of Freeport's shares floated on the stock exchange.

He said Indonesia should make a law to ensure that the government get fair revenue from the development of the country's natural resources.

Meanwhile, coordinator of the Mining Advocacy Network (Jatam) Chalid Muhammad criticized Freeport for the massive tailing it disposed of around its copper and gold mine.

"The main problem with Freeport's tailings is its massive amount," Chalid was quoted by Republika as saying on Tuesday.

Chalid's remarks followed a statement by Freeport's official that the company's tailing had been processed to clear toxic elements.

Chalid said Freeport disposed of 220,000 tons of tailings per day into the nearby Aikwa River.

"You can imagine what will happen to the Aikwa river and the nearby forests if Freeport Indonesia operates for 20 years," Chalid said.

He proposed the company to put the tailing in its former mining areas that have turned into valleys rather than dumping into the Aikwa River.