Freeport suspend exploration activities in Papua
By: Hans Bodega
Friday, June 23 2000 - 06:30 AM WIB
Gold mining company PT Freeport Indonesia has suspended exploration activities on the Block B contract area in Irian Jaya for concerns about "troubles" caused by the free-wheeling behavior of the local people and legal uncertainty.
The source at the Ministry of Mines and Energy told Petromindo.Com that the company had asked the Ministry to allow it to suspend its exploration activities for one year from 30 March, 2000 to 29 March, 2001, and the Ministry had given the permission.
"The company asked to suspend the exploration activities due to troubles caused by the local people amid reform euphoria," the source further elaborated.
"The company is also concerned with the issuance of the Forestry Law No. 41/1999 which bans open pit mining in protected forests. Our Block B contract areas also covers areas, which have been categorized as protected forests," he added.
He said Freeport is waiting for the government's decision whether it would be allowed to develop deposits that hey may find in the protected forests.
According to the book titled Grasberg published by the company, Block B covers a 4.8 million-acre (1.18 million hectares) land spread through Irian Jaya's highlands all the way to the Papua New Guinea border.
Last year, Freeport suspended its exploration activities on Block B for three months from May 15 to Aug. 15 for security concerns.
The company operates a huge copper and gold mine at the Grasberg area, which is located in the company's Block A contract area.
A source at the Ministry of Mines and Energy also said PT Irja Eastern Minerals, which is 90 percent owned by PT Freeport Indonesia, has also asked the ministry's permission to suspend its exploration activities in the province until October or November this year.
The ministry has yet to decide on the request, the source said.
"The company asked to suspend the exploration activities in concerns about legal uncertainties and troubles caused by the free-wheeling activities of the local people amid reform euphoria," the source said.
The source said like Freeport's Block B, Irja Eastern's contract area also covers areas, which are categorized as protected forests.
According to the Grasberg book, Irja Eastern has a contract of work on three blocks of land - which are around the Etna Bay, around the headwaters of the Tariku river and around the Kembu River respectively -- totaling 2.5 million acres.
Last year, Irja Eastern asked the ministry's permission to suspend its exploration activities for security concerns. The ministry allowed it to suspend its exploration activities for one year from May 15, 1999 to May 15, 2000. (*)