Indonesia: Freeport McMoRan's Grasberg mine impacts indigenous land rights, company response included

An article by Mongabay from 2017 alleges that PT Freeport Indonesia (PTFI) never compensated the Amungme and Kamoro people on the land where it operates its Grasberg gold and copper mine. The article also alleges that PTFI was using land in protected forests without the proper permits. Freeport McMoRan responded that all land used by its subsidiary PTFI has been legally and formally released by customary land owners through a contract with the government.

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Company response
22 October 2019

Freeport McMoRan's reponse

Author: Freeport McMoRan

The PTFI project area is located where indigenous peoples of Papua hold customary land rights. Specifically, the Amungme in the highlands and the Kamoro in the coastal lowlands are considered traditional landowners of the area, along with the Dani, Damal, Moni, Mee, and Nduga. All land used by PTFI has been legally and formally released by the customary land owners through the local government for use by the company through a Contract of Work with the Government of Indonesia. The Indonesian government granted PTFI an IUPK to replace its former COW, enabling PTFI to conduct operations in the Grasberg minerals district through 2041.  For more information, please see our 2018 Annual Report on Form 10-K as well as the following sections of our website:

13 October 2017

Indonesia: World's largest gold mine not benefitting Papua's indigenous people, say activists

Author: Hans Nicholas Jong, Mongabay

Freeport McMoRan Inc. (FCX) and the Indonesian government are currently hashing out the details of a long-term agreement for an extension of the company’s contract to operate the giant Grasberg gold and copper mine in Papua province, due to expire in 2021.

Freeport announced in August that it had agreed to divest a 51 percent stake in its Indonesian subsidiary, PT Freeport Indonesia (PTFI), in which it currently holds a 90.64 percent stake, following sustained pressure by the government to reform a mining sector long seen as not doing enough to benefit local communities or contribute to the national economy...

Indonesia’s National Commission on Human Rights (Komnas HAM), a state-funded body, said earlier this year that PTFI had never compensated the Amungme and the Kamoro as the original stewards of the land where it operates...

PTFI spokesman Riza Pratama said the company manages its waste in accordance with the terms set out in the Environmental Impact Assessment (EIA) approved by the government in 1997. “We are operating in accordance with our mining contract and [mining waste processing and disposal] has been regulated in it,” he told Mongabay...

The BPK [Indonesia’s Supreme Audit Agency] also found that Freeport had used 4,536 hectares (11,208 acres) of protected forest area without obtaining the proper permits, costing the government $20 million in lost fees between 2008 and 2015.

Riza declined to comment on this finding when asked by Mongabay...

*Sourced by RepRisk due diligence on ESG and business conduct risks,

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