JATAM | Mining Advocacy Network

Due to the rainfalls in Camp 55 Mil 72 Tembagapura, areas near the PT.Freeport Indonesia (PT.FI) gold mine in Mimika Papua suffered from landslides (Kompas, 07/05). It is estimated that 20 gold miners are burried in this area. This is an additional reason why PT FI’s mine should be closed and reevaluated.

This is not the first time that Freeport’s mine has suffered landslides. Landslides have also been noted in Freeport’s areas in 2000, and three times in 2003, with the latest in 2006.

The recurring landslides is not necessarily due to the steepness of the area or the heavy falls. This is proof of the area’s incapability of taking the destruction weight due to PT FI’s mining.

Landslide is one among the many problems in this mine. There are also many others regarding this mine. Currently, the tailing waste has reached at least 1.187 million tons. These tailings are been dumped to the Aghawagon, Otomona, and Ajkwa river, which by three years ago has destructed approximately 2100 to 6300 hectares of manggrove. Not only that, there are 11 thousand contaminated estuaries, with 20 – 40 km of the Ajkawa river contaminated with tailing and 13,300 arable land burried.

On March 26, 2006, the Minister of Environmental Affairs announced that PT.Freeport does not own a waste dumping permit. The Tailing waste in the ModADA pandan Lima and Kelapa Lima outlet does fit the Solid Dissolved Standard Parameter (TSS) and does not own a Toxic Waste dumping permit. As for the puncak jaya steam turbine emits a non standard SO2 parameter and violates the Government Regulation for the fly ash and bottom ash direct dumping. Despite its clear violation on Environmental Laws, the SBY adaministration has not acted upon it.

The state has suffered plenty of loss due to this mine. Mines have been exported in its raw material form. Only 29% of the PT Fitotal concetrate are processed domestically, the remaining are exported to 9 countries.

The Indonesian Finance Oversight has also found other mining extras such as sulphur were not included in the work contract. The state is predicted to have suffered loss at a minimal of U$14.4 million. Freeport Indonesia has short payments for the 2003 and 2004 royalty with a total of U$369,490. The concentrate sales from Freeport to Glencore AG in 2004 were under the market prices, which omits the tax revenue potentials of a total of U$ 5.91 million.

PT FI is entitled to the largest gold and cuprum-Etzberg and Grasberg. The Grasberg gold reserve is estimated at 4.6 million grams, but how come Papua with less than 1% of West Java’s population has the highest level of infant death and pregnancy related death, at 29 out of 33 provinces. How come there are still plenty of gold diggers mining gold from PT FI waste?.

Elsham and Yamahak’s official report states that the gold scraping in Freeports tailings started in 1999 until 2000. Along a 70 mile location until the modADA areas. On mile 72, mile 50, and mile 32. These miners may gather around 1 to 10 grams of gold per day. Residents mine in hazardous areas, risk of being caught by Freeport’s task force (TF) in their efforts if stopping these scraping. These scrapers has also become a “business” port for the Indonesian army and Police authority. Each resident who wishes to scrape may be charged Rp. 300 thousand until Rp. 3 million for the security transport cost.

There are also plenty of human rights violation. This is related to PT FI’s financing the military. Freeport pays approximately Rp. 62 Billion in 2004, and Rp. 52 Billion in 2003, and Rp 50.4 Billion in 2002 to the Indonesian military (TNI).

There is no more reason why not to stop PT FI’s mining and then reevaluate and consult the people of Papua on the future of the mines. If not, then the Government and DPR are endorsing that the Papuans should remain poor.

JATAM has urged a special committee for Freeport’s case, and the DPR should announce its working results related to the existance of PT FI.


Media Contact:Luluk Uliyah