House's task force may call for review of Freeport's contract

A task force in the House of Representatives (DPR) may call for the review of PT Freeport Indonesia's existing contract of works after visiting the firm's gold and copper mining site in Papua next month, Suara Karya reported on Tuesday.

"We will visit Freeport's mining site next month to get a close look at the mining operation. The information to be gathered from the visit would be used as materials to recommend for a review in the company's existing contract," said Dito Ganinduto, the head of the House's task force assigned to monitor the operation of Freeport.

Dito said that the government had no rights to end Freeport's existing contract until the House issued a recommendation on what alternatives should be taken to ensure that the local people would get better economic benefits from the company's operations.

Meanwhile Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Monday that an inter-governmental team was currently auditing the social and economic impacts of Freeport's operations to the local people.

"The audit will be completed in two months. The result will be used as the main information to determine whether or not the government would review Freeport's contract," he said.

Purnomo said that the team would also use the result of the environmental audit carried out by the office of the state minister for environment in determining if it is necessary to review the company's contract.

A string of protests hit Freeport Indonesia's mining site in Mimika, Papua in recent months. The latest protests had led to the killing of five people including police members. The protesters called for the closure of the mining site saying that the mining companies had caused more difficulties rather than benefits to the people. (*)