Freeport to cut production, Tembagapura residents to supply basic needs to Freeport

Good news is for Tembagapura, where the gold and copper miner PT Freeport Indonesia is located. Local companies and people in Tembagapura, with supports of non-governmental organization activists, are allowed to supply basic needs for Freeport's employees, according to State Minister of Environment Sonny Keraf.

"So far, the supply of basic goods has been monopolized by Latif Corporation and it has been going on for a long time. With the decision to allow local people to supply basic needs, the people could benefit from the business side," Sonny told journalists at the sidelines of a hearing with the House of Representatives' Commission VIII.

A-Latief is controlled by former minister of manpower Abdul Latief.

He said Freeport had also agreed to improve its community development programs, including building hospitals in a number of regencies.

Another good news is that Freeport has agreed to reduce its copper and gold ore production to 200,000 per day from the current 300,000 tons per day following the collapse of its waste disposal at Lake Wanagon, which killed scores of people.

Sonny said Freeport's head office in New Orleans in the U.S. had approved the production cut.

"At the end of this month, Freeport will present its proposal for the reduction of production and improvement of its environmental management to the minister of mines and energy and state minister of environment," Sonny said.

Sonny said that the agreed reduction of Freeport's daily output to 200,000 tons of copper and gold ore per day must be supervised by the Ministry of Mines and Energy, while his office would only monitor the company's environmental management.

Meanwhile, he said the Environmental Impact Management Agency (Bapedal) would again evaluate the licenses for Freeport to dispose its huge tailing in its current tailing disposal locations. (*)