Government asked to review Freeport's contract

Indonesia's influential green activist organization Walhi has called on the government to review the contract of works awarded to the world's major copper and gold producer PT Freeport Indonesia for the lack of the company's commitment to protect the environment, Bisnis Indonesia reported on Monday.

The call was made by Walhi's executive director Longgena Ginting on Saturday, just several days following the slippage of about 2.3 million tons of materials of rocks at the company's open-pit mine area in the Grasberg mine site in Mimika, Papua.

Two people were killed in the incident that took place on Thursday last week. The local police reported Monday that six of the 13 victims of the slippage were still missing.

Ginting said that it was now the right momentum for the Commission VIII of the House of Representatives (DPR) which is in charge of mining affairs, to review the contracts awarded to Freeport.

According to Ginting, the slippage incident indicated that Freeport was not capable enough to carry out its production activities based on sustainable development principles, particularly in meeting the production target of 800,000 tons of ores per day.

He said that even at a lower production level, Freeport's activities had caused many environmental problems.

The government should, therefore, review whether or not Freeport's operation activities have been based on the law No.23/1997 which among others requires mining companies to carry out rehabilitation activities on their former mining site. (*)