Freeport to establish trust for tribal communities
Monday, September 24 2001 - 07:29 PM WIB
US based copper and gold miner Freeport-McMoRan Copper & Gold Inc and its mining affiliate PT Freeport Indonesia (PT-FI), together with indigenous community leaders from Irian Jaya announced Monday the signing of a ``Letter and Mutual Acknowledgement'' that would provide for a trust for the benefit of original tribal inhabitants of the Grasberg mine project area.
According the company?s statement, this agreement fulfills a commitment by PT-FI for voluntary special recognition for the holders of traditional land rights in the mining area and for the expanded scope and continuing success of the mining operations.
Under the agreement, said the company, PTFI would fund $500,000 per year to the Trust and will initially provide $2.5 million representing funding for 1996 through 2000.
The company said the Amungme and Kamoro tribal leaders had expressed a desire for an equity ownership in PTFI's operations in Irian Jaya and intended to use a portion of the funds to buy shares of Freeport McMoRan in the public market to be owned and held by the Trust. (*)