Announcement of audit reports on Freeport delayed

The government will announce the results of its comprehensive audit on Freeport Indonesia's operation by the end of this month, a two week delay from the initial schedule, Investor Daily reported Saturday.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Friday that the inter-governmental team on Freeport was still finalizing the results of the audit which covered the copper and gold giant's overall activities including production, the impact of its mining activities on the environment, the payment of taxes and royalties to the government and its community development programs as well as security.

"The inter-governmental team in Freeport was still discussing the results of the audits reported by the technical team", the minister said after attending the team's technical meeting.

The audit was conducted due to growing criticism on Freeport operation. The company has been criticized for not doing enough to increase the welfare of the local people and in protecting the environment around its mining area.

With regards the proposal recommending Freeport set up a new refinery plant in order to give more added values from its mining operation to the country, the minister said that the proposal was being studied.

Meanwhile the head of the intergovernmental team on Freeport Witoro S. Soelarno said that there was a possibility that Freeport would be requested to set up a new smelting plant. "But if Freeport refuses to do so, the establishment of the smelting plant will be offered to private investors," he said. (*)