Mines and Energy Ministry waits decision on Freeport

The Ministry of Industry and Trade is still waiting for a decision from the coordinating minister for economy, finance and industry (Menko Ekuin) over six recommendations pertaining to gold and copper miner PT Freeport Indonesia's operation given by a team tasked to evaluate Freeport's contracts of works (COW).

It is hoped that the new Menko Ekuin, to be announced either on Thursday or Friday in a packet of the new restructured Cabinet, would quickly take decision over the matter, Director General of General Mining Surna Tjahja Djajadiningrat.

Surna said the team presented their recommendations to Menko Ekoin Kwik Kian Gie last June, but before Kwik took any decision, he already resigned as Menko Ekuin.

This team is given the authority to review all problems pertaining to Freeport's operations, including its COW, production and marketing of its products, legal aspects including the requirement for Freeport to divest its ownership in the mining giant to the government or local entity, community development, environmental issues and mining techniques employed by Freeport in its mining operation in Irian Jaya.

Asked about the government's monitoring on Freeport following the Wanagon disaster, Surna said that Freeport was currently repairing the wall of its Wanagon waste disposal site that collapsed a few months ago, causing four people missing.

Surna said that Freeport was currently producing 200,000 tons of gold and copper ore from its open mining operation, and 10,000 to 15,000 tons from its closed mining pits.

Commenting on the increasing demands from employees and local people to mining concerns, Surna said that mining companies should now actively involve local people in their operation.

Besides, the government's mining policy needs review. It should not anymore take aside the roles of local people in mining operations. (*)