Govt ban won't affect Freeport production

The government ruling to ban giant gold mining firm PT Freeport Indonesia from dumping its overburden into the Wanagon Lake won't affect the company's open pit mining operation because it has already found two new alternative locations to dump the overburden, according to company external communications officer Mindo Pangaribuan.

"We will transfer the dumping (of the overburden) to Cartens," Mindo was quoted by the Republika daily as saying.

He said that Cartens was one of the dumping location stipulated under the company's contract of work. He added that another location was in the West side of the Grassberg Mountain.

Asked on the possibility that the company would reduce its production to 230,000 tons of ore per day from the current 300,000 tons per day, he said that it's to early to make a comment on that issue.

The Ministry of Mines and Energy recently banned Freeport from dumping its overburden into the Wanagon Lake following the landslide accident that killed four people. The government said that Freeport must find a solution to prevent similar accident to reoccur in the future.

Many believe that the ban would effectively mean a suspension of Freeport's open pit mining operation. (*)