Govt concerned with Freeport protests

The head of the Indonesian government's Investment Board Muhammad Lutfi said he's concerned with recent protests, which have interrupted mining operations of U.S.-headquartered Freeport-McMoRan Copper & Gold Inc. (FCX), the daily Kompas reported Thursday.

"Of course this is disturbing," the newspaper quoted Lutfi as saying. "The government's stance is clear that we will honor all contracts signed by the government and its apparatus."

Last week, Freeport had to halt operations at its Grasberg mine in Papua - Indonesia's most remote province, politically and geographically - after 500 locals set up barricades on a road leading to the site.

The desperately poor villagers were demanding the right to sift through waste rock dumped by mine for tiny amounts of gold and copper that could be sold, but this practice is illegal, Freeport said.

The Grasberg mine is the largest gold mine in the world and the third largest copper mine.

Meanwhile in Jakarta, demonstrators rallied for a third consecutive day Wednesday in front of the offices of the local unit of the U.S. mining company, demanding that it cease operations in Papua.(*)