Tag: Freeport-McMoRan

WHAT DO WE KNOW ABOUT HOW MUCH FREEPORT PRODUCES?

JUBI, 22 June, 2011
It is still very difficult for the Mimika district administration to get information about the quantity of gold and copper produced by Freeport-Indonesia and how much is exported via Portsite, Amamapare.
Freeport's Grasberg mine - Earth's biggest hole in the ground

The head  of the mining, energy and minerals department of the Mimika administration, said:

‘We don’t know anything about the quantity of gold, copper and other minerals produced daily by Freeport and this is because  we do not have free access to the company to be able to control the level of production every day.’

He said that the administration did once charge two of its employees to oversee export activity in Amamapare, but after we had given them the task, the two men were unfortunately shifted other posts.’  [Could this have been a deliberate action.]

This is a big problem. Anyone charged with scrutinising exports and imports  would have to be a specialist. They would need to have a special certificate for controlling goods and services for both exports and imports..

All this has an impact on obtaining clarification about the quantity of minerals produced every year. How can this possibly be synchronised with the information received by the authorities in Jakarta? It’s all just a game because the people at the centre get data about gold and copper production which comes directly from the company, PTFI.

The department of mines in Jakarta only gets information from one side. ‘This doesn’t lead to any accuracy. Anyone with bad intentions can easily manipulate the data.  Although lots of stuff is exported, they report a very low figure.’

So the question is: who else but the company can know anything about the quantity of material it produces every year? Only the PTFI.

[COMMENT: This once again highlights the extraordinary powers that the US company has been given to keep a tight control over how much it exploits of Papua’s abundant natural resources, with the  Papuan people not only left in the dark but also left living in poverty while Freeport makes a fortune from its investments in West Papua. TAPOL]

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Freeport looking for more minerals to extract from Papua

Grasberg mine
Image via Wikipedia
JUBI, 21 June 2011
A crater that is many metres wide and as deep as a three-storey house is to be found at Mile Post 74 within the area of the mining concession of Freeport-Indonesia(PTFI). Thousands of people working for Freeport say that they know nothing about the mining potential of this deep crater and what exactly Freeport intends to mine there.Some of the workers are quoted as saying: ‘The company is concealing information about the minerals it plans to mine. Some have mentioned copper but more recently mention has been made of gold, silver, iron,  and other minerals about which nothing has been reported officially.’ The workers believe that as many as nine new minerals are going to be mined there.As regards the natural resources now being researched, the crater is said to be much greater than the one dug for the Grasberg mine to the north.

One worker said that it is not only a question of nine more minerals being exploited by Freeport. As regards the geo-science potential from Papua, most of the minerals will be taken abroad. One worker who is familiar with the minerals in Grasberg said that it is only if the minerals are processed here and not taken abroad that we will be able to know what Freeport it intending to extract. ‘It is likely that the stuff will be taken abroad through pipes so that no one here knows what is there.

Another report from JUBI of the same day says that foreign investors are busy investigating what more they can take away from Papua. Freeport undertook a major research a while ago near Kampung Ugimba.

‘People from the company who work in Tembagapura have been seen frequently coming and going, and we have been told that there is uranium there.’

JUBI has been told that aerial surveying – aerogeophysics -has been used to survey the mineral  potential.

They have been using helicopters  to assess the uranium potential, he said. Once this has been ascertained, more conventional techniques will be used.

As yet, Freeport has said nothing about these searches. But for sure, the company has been undertaking many surveys in various parts of Papua.

(West Papua Media Comment:  At this time of great market uncertainty about uranium and the safety of nuclear power following the still ongoing Fukushima reactor disaster in Japan, it beggars belief that Freeport and its main shareholder, Rio Tinto, are conducting illegal (uncontracted) exploration for potential uranium deposits (of which there are large amounts around the Grasberg complex).  It is also very curious that this is the exact area that the unsolved shootings and bombings of Freeport workers has been occuring over the past two years, yet in an “unsecured” environment this exploration and processing has been able to occur.  If the Indonesian civilian government were to set up a National Audit of all Freeport activities, they would see clearly that the military-corporate collusion is reaping massive financial benefits, just not for either West Papua, nor Indonesian people.)

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Papuans enjoy none of the benefits from Freeport operations

JUBI, 2 April, 2011 

According to John Kabey, the chairman of KADIN, Indonesia’s Trade and Industry Chamber, Freeport uses all its corporate social responsibility funds for its own security needs.

‘They use it all to finance infrastructure for the security of their operations, including payments to the Indonesian armed forces,’ he said.

He was speaking to a group of Indonesian ministers to report on the results of a KADIN seminar.

He used the same occasion to declare that  Freeport operations in Papua for the past more than thirty yeara have nothing to improve the living conditions of the  Papuan people. He said that Freeport operations have only led to  friction and conflict between the  Papuan people because  the various clans with rights to the land used by Freeport are still in onflict with each other.

Kabey said that the central government should not use Freeport as an economic resource, in particular because the financial benefits from the company all flow to the central government while those living in the vicinity of the company enjoy none of the benefits.

[COMMENT: The copper and gold reserves currently being mined by Freeport are deemed to be the largest reserves in the world, while Freeport’s operations have transformed a huge mountain into a deep crater and tailings have poisoned the nearby rivers, depriving Papuans who once lived in the area of the basic source of their livelihoods. TAPOL]

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A Food Project Invasion in West Papua: Merauke Integrated Food and Energy Estate (MIFEE)

http://www.wri-irg.org/node/12386

War Profiteer of the Month:

Merauke Integrated Food & Energy Estate (MIFEE)

– A Food Project Invasion in West Papua

18 Mar 2011 — javier

Rosa Moiwend

Background

Papua is the western half of New Guinea, the world’s second largest island, located about 200 km from the north of Australia. When the Dutch colonised this territory, it called it Dutch New Guinea. The name of this territory has changed over time according to its political status. The Papuan political leaders then changed the name of Dutch New Guinea to West Papua when they prepared for the self-government of this territory in 1961. As soon as the Dutch left in 1962, Indonesia took over the territory, and then West Papua became one of the Indonesian provinces, called Irian Jaya. In 1999, the demand for independence from Papuans increased. In 2001 the Indonesian government granted a Special Autonomy status for Papua under law number 21, and accepted the original name of Papua. Yet, the autonomous status does not mean self-government. All development policies are still under the control of Jakarta, including the policy over investment in natural resources. Moreover, Papua is the only province of Indonesia which it is still identified as a conflict zone under the national defence policy after East Timor became an independent country in 1999 and after Acheh Province signed a Peace Agreement in 2008.

After nine years of Special Autonomy, Papuans realised that this status does not provide significant changes in many aspects of their life. Moreover, the Indonesian government controls the regulation of investment in natural resources by opening easy access for multinational companies to exploit the abundant minerals and forests. Some multinational corporations such as Freeport McMoran, a US giant mining company, plan long-term investment and spend huge amounts of money on security using Indonesian military from the Special Forces (Kopassus) and police. The UK/US company BP and some Korean and Chinese companies, are on the list of investors as well. The Indonesian government through its programme to save energy and deal with the world food crisis plans to open up a massive area of land in the southern part of Papua with a mega-project on food and bio-energy called MIFEE (Merauke Integrated Food and Energy Estate). Since the demand for independence and the various demands for indigenous people’s rights cause opposition to the investors, the government uses a military approach as the only way to stop the conflict. After Freeport McMoran, MIFEE would be the next disaster for Papua. This article will portray a small part of the struggle over Food and Bio Energy project in Papua.

Malind, one of the indigenous communities in Merauke

Merauke is the southern part of Papua, covered by swampy forest with many rivers flowing down, mixed with massive savannah. The ecosystem in this region is unique. According to WWF, Merauke is one of the important places in the New Guinea Trans Fly Eco-region with its abundant bio-diversity.

Local tribes who have been living in the region are the Malind, Muyu and Mandobo, as well as Mappi and Auyu. The Malin tribe is one of the tribes most affected by the Food and Energy project. Some missionaries and anthropologists such as EB Savage from London Missionary Society, AC Haddon and Van Baal from the Netherlands, wrote in the early of 19th century about the Malind people in the region1. Malind people identify themselves according to their Dema (ancestors). They believe that some places in Merauke are sacred, as Demas had visited that place on their journey. More than that, they believe that ancestors live there so they should protect that place and give their respect to it. If they disobey, they will get a customary sanction which bring bad things in their lives. These beliefs are transferred from generation to generation. Malind recognised each other according to the symbols of clans. There are six big clans with their own symbols; Gebze with coconut, Mahuze with the sagoo palm, Basik with a pig, Samkakai with a kangaroo, Kaize with a cassowary and Balagaise with a falcon bird. These symbols integrated with the customary rules that control and influence their lives. Losing one of the symbols in nature means losing their identity.

Malind people have their own mechanism for using their natural resources. Each clan has its own customary territory that functions as a hunting place, for gardening, as a fishing ground, and to settle. Each place has a boundary that doesn’tt appear on the government map of land rights. All explanations and knowledge of customary matters are found in their customary law. If the sacred places and boundaries are lost, it means that internal conflict between clans might happen. This is the reason for the importance of keeping the customary boundaries and sacred places.

Merauke Food and Energy Estate (MIFEE)

In 2009, when a food and energy crisis hit the world in connection with global warming, the Indonesian President, Susilo Bambang Yudhyono, declared his goal of feeding “Indonesia and the world” by developing a food and energy estate in Merauke, Papua. As a mean of stabilising the security of Indonesia’s food, the project – called Merauke Integrated Food and Energy Estate, or MIFEE — covers 1.6 million hectares of commercial plantations. Merauke has been designated a national Special Economic Zone (SEZ) in order to attract the $8.6 billion of investment needed for the project. MIFEE is one of the priority programmes of the second term of his presidency (2009 to 2014).

To fulfill its ambition, the government of Indonesia has invited multinational companies from the Middle East, Asia, and the US, as well as from Indonesia. More than 30 companies confirmed their interest in this project and have already received concessions from the Indonesian government. Some, such as the Bin Laden Group from Saudi Arabia, announced their interest in spending 43 million dollars for 500,000 hectares of land on rice fields in Merauke. Then it was followed by some other companies from Qatar, Oman and the United Arab Emirates who also want to invest in agribusiness in Indonesia2. International Paper, based in Memphis, Tennessee, is also reported to have had exploratory talks with the Indonesian minister of forestry concerning developing a mill either in Kalimantan or in Merauke3. From Asia, a Japanese Corporation, the Mitsubishi group, the Wilmar group from Singapore, and LG International from Korea, also made commitments to this project though a joint venture with Indonesian companies. Companies such as Medco Group, owned by Arifin Panigoro; Artha Graha Network, owned by Tomy Winata; PT Bangun Cipta Sarana, owned by Siswono Yudhohusodo; Comexindo International, owned by Hasyim Djojohadikusumo; Sumber Alam Sutra; Korindo; PT Rajawali Nusantara Indonesia; Sinar Mas; PT Kertas Nusantara; PT Digul Agro Lestari as part of Astra Agro Lestari, and Sinar Mas Group4 are the Indonesian partners of these multinational companies. As well as investing in food plantations, many of them are interested in industrial timber plantation and cheap production.

MEDCO Group vs Malind

Medco International is an integrated corporation that invests in oil, gas, mining and energy sectors across Asia, Africa, and the US. It has 8 production blocks in the US and the Gulf of Mexico, 2 exploration blocks in Yemen, 2 blocks in Cambodia, 1 block in Tunisia, and 1 in Libya1. According to The Jakarta Post, Hilmi Panigoro, the presidential commissioner, stated that Medco Energy International will collaborate with the Libyan Investment Authority (LIA) for US$ 400 million investment on an oil facility in Libya. The investment will be shared fifty-fifty with LIA.2 In Indonesia, Medco Energy owns 10 blocks in total in Sumatra, Java, Kalimantan and Sulawesi.

In order to spread out its business, Medco Energy particularly shows an interest in bio-fuel and bio-energy. In Sumatra (Lampung), Medco is spending US$ 45 million for 13,000 hectares of Cassava plantations. Then in Merauke, Papua, Medco is investing in 170,000 hectares for an industrial timber plantation. MIFEE has one of its priorities as energy investment. It has been planning to operate using a similar model of corporate farming as in Brazil. According to Hilmi Panigoro, Brazil is a successful model of an integrated agriculture project regarding energy and food security. Panigoro said Brazil has switched 50% of its fuel consumption from only 1% of its fertile land. Moreover, he quotes the studies of the FAO in 2005 that suggested Indonesia has more potential for developing bio-energy than Brazil. 3

Medco has strong support from the Indonesian government and the local authorities in Merauke. Without consulting with the Malind people, the Indonesian government, with help from the local government, has split opinions in the area about forestry and agriculture.

In September 2009, LG International announced its partnership with Medco Group to obtain 1 million hectares of Papua’s forests for wood chips. For that reason, the Korean corporation spent about US$ 25 million on 25% of PT Metra Duta Lestari (Medco Group), with another 66% held by Medco.4

Local independent media, Jubi online, reported complaints from the Malind tribes’ leader Alberth Onoka Gebze Moiwend, in Merauke, about Medco’s activities. Alberth explained that Medco’s forest clearance was destroying hunting places, and firewood and food grounds of the Malind tribes who live in Bupu village. In addition, wastes from Medco’s pulp factory in Bupu village is polluting the river, which is the only water supply for the village. Yet Medco Group refuses to say that its activity affects deforestation. The company, is already producing large amounts of timber from natural forests, and has shipped several barges, mostly of acacia and eucalyptus trees for chips in Merauke. All the land will be cleared and then replanted with other seedlings of commercial timber. Moreover, Onoka Moiwend asserted that Medco activities could potentially bring the indigenous people in Merauke towards slow extermination.

The Malin people in Kaliki, a small village near the town, are waiting for their compensation from Medco. According to the local church, the PT Medco Papua (PT Medco) company entered Kaliki village in 2008 and promised to pay compensation to five clans (Mahuze, Kaize, Balagaize, Gebze, and Ndiken) who own the land. On 3 March, 2008, they organised a meeting with villagers. PT Medco promised to give them compensation for the use of land with 10 motorbikes for the Gebze family, who owned most of the land; and they promised to build houses for the villagers. Additionally, the company would provide each villager with their own bank account and provide a school and houses for the teachers. Also, there would be guaranteed scholarships and dormitory costs for children of Kaliki who continued their studies in the city. The company would facilitate a new road to Kaliki as well. Medco would provide jobs for villagers in order to improve their economic situation.

Nevertheless, the company created internal conflicts between clans in the village by signing an agreement with only the other four clans. In the meantime, Medco made another agreement with the Gebze clan who agreed to sell 20 hectares of their land with only a payment of 20 Million Rupiahs (approximately £1500). The four other clans complained to the company and the Gebze. Misunderstandings between those clans finally led to one of the Gebze members being a victim of a black magic practice that cause his death. Villagers and Gebze families believed that the black magic was sent by people from the other clans. For that reason, the clans are fighting against each other while the company continues to run its project. Just recently, the local church took an initiative to mediate between the Gebze and other clans to resolve their conflict. Finally, the villagers have decided to reject PT Medco and its activities in Kailiki.

It has been reported that there has been strong rejection of MIFEE by local people. Solidarity groups called SORPATOM and KOMALI have formed a resistance alliance. Protests and demonstrations had been organised by these groups. Furthermore, the customary leaders in Merauke wrote a letter of rejection to MIFEE and sent it to the UN Special Rapporteur for Indigenous People was facilitated by AMAN (The Indigenous People’s Alliance of Archipelago), the main Indonesian Indigenous People’s forum. AMAM delivered a statement of concern about human rights in Merauke in connection with the MIFEE project to the UN Permanent Forum on Indigenous Issues in New York, in April, 2010. AMAN in its statement categorises the MIFEE project as “a structural and systematic genocide of the West Papuan people” this was endorsed by 24 indigenous people’s organisations around the world5. The rejection of MIFEE has now gained big support from different organisations in Indonesia and Papua, and internationally as well.

The case of Kaliki is only one of many cases that have happened in the region. Not only Medco, but also some 30 other companies cause problems for the indigenous people there. However, the Indonesian government stays quiet and continues its interest in this mega-food project. At tge local government level, Merauke recently had a new head of authority who has a different perspective on this food project. Romanus Mbaraka, the new head has decided to postpone operating this project under the local legislation. However, he has no authority to influence national investment policy.

The question is for how long the indigenous people in Papua will resist the bombardment of investments threatening their existence in their ancestors’ land.

Notes

Published in War Profiteers’ News, March 2011, No. 28

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INDIGENOUS PAPUANS IN INTAN JAYA REJECT MINING OPERATIONS IN AGISIGA

JUBI, 10 February 2011

There are now reports that illegal mining is under way not only in the
Degeuwo Estuary but also in the Dogabu Estuary, in the district of
Intan Jaya, Papua.

The illegal mining is being carried out by groups that are unknown to
the local community or the local government.

‘The mining operations are being carried out without a licence from the
local government,’ said Agustinus Tapani, secretary of the Intan Jaya
Traditional Council. He said that the local community is the rightful
owner of the land and they firmly reject the presence of any companies or businesses in their area. ‘In any case, they have never agreed to surrender their land, nor have they issued any licences to others to operate there.’

Agus Tapani said that a number of mining operators are excavating
minerals and coal in West Papua, including in Degeuwo without licences either from the government or from the local communities. ‘Law No 4/2009 makes the position clear. Yet, many companies have bypassed these authorised mechanisms which have been laid down by the government,’ he said.

Speaking on behalf of the local DAP, Tapani said that all companies must abide by the provisions of the regulations. He called on the company now operating in Degeuwo to end their operations because the community in Intan Jaya is suffering as a result of these mining operations.

Agus Tapani who is also the secretary of the KNPI in Intan Jaya warned all companies which come to Papua and partiularly to Intan Jaya district to realise that they need to pass through three stages, the traditional community, the churches and the government.. The presence of mining companies in Agisiga can initiate a process that will damage the lifestyles of the entire community in Intan Jaya. He also called on the executive and legislative bodies to pay attention to this problem.

Although the identity of the company now operating in Intan Jaya is not known, JUBI understands that PT Freeport Indonesia is involved in explorations in a number of districts, including Sugapa, Ugimba, Mindau, Pogapa and the Dogabu Estuary, through its subsidiary company PT Mine Serve International.

 

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