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IRIAN JAYA (WEST PAPUA, NEW GUINEA): THE QUEST FOR INDEPENDENCE-June 27, 2000

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June 27, 2000

======================================================= Subj: Human Rights Watch report on Papua
Date: 6/27/00 4:22:09 PM Central Standard Time
From: cscheiner@igc.apc.org (Charles Scheiner)
To: reg.westpapua@gn.apc.org

The recent HRW report on Papua,
"HUMAN RIGHTS AND PRO-INDEPENDENCE ACTIONS IN
PAPUA, 1999-2000" is available on the web at
http://www.hrw.org/reports/2000/papua/

The Table of Contents and Summary of the report
follow:

May 2000 Vol. 12, No. 2 (C)
INDONESIA
HUMAN RIGHTS AND PRO-INDEPENDENCE ACTIONS IN PAPUA, 1999-2000
I. SUMMARY
II. RECOMMENDATIONS
III. BACKGROUND
IV. THE RISE AND FALL OF THE NATIONAL DIALOGUE ON IRIAN JAYA
V. CRACKDOWN FOLLOWING THE OPENING OF THE NATIONAL DIALOGUE
VI. RIGHTS VIOLATIONS FOLLOWING FLAG-RAISINGS IN SORONG AND GENYEM
Genyem
Sorong, July 5, 1999
Sorong, September 9
VII. PUBLIC MOBILIZATION AGAINST DIVISION OF THE PROVINCE
VIII. DECEMBER 1 FLAG-RAISINGS AND THE CLASH IN TIMIKA
The Clash in Timika
APPENDICES

I. SUMMARY

In December 1999, Indonesia's new President, Abdurrahman Wahid, announced
that he would watch the first sunrise of the new century from the
easternmost province of Irian Jaya. It was an unusual choice-the province,
roughly the size of France, has a population under two million in a country
of over two hundred million, and its capital, Jayapura, is some 3,500
kilometers (2,100 miles) from the Indonesian capital, Jakarta-but Wahid's
announcement was clearly intended to signal a major change of policy after
more than thirty years of authoritarian rule. At a ceremony at an army base
near Jayapura on January 1, 2000, Wahid declared that the province would
from that day forward be called "Papua," an important gesture of
reconciliation toward the indigenous population of the province, who call
themselves "orang Papua" (Papuan people). For decades, the name had been all
but taboo as the embodiment of forbidden aspirations to political and
cultural autonomy.1

Since coming to power in October 1999, the Wahid government has introduced
significant reforms in Papua in the face of widespread demands for
independence. In addition to the name change, which has yet to be officially
endorsed by Indonesia's parliament, the government has declared that
peaceful expression of pro-independence sentiment will no longer be punished
as it had been in former years, and it released over sixty Papuans from jail
as part of a nationwide amnesty for political prisoners. The government's
actions, however, have not been consistent and abuses have continued. While
it has permitted a number of peaceful demonstrations, which usually take the
form of symbolic raising of the "Morning Star" flag signifying an
independent Papua, other such rallies have been forcibly dispersed by police
with resulting injuries to demonstrators. Likewise, even as Indonesia's
Minister for Law and Legislation announced on December 13, 1999, that all
Papuan political prisoners would be released, five men involved in a
peaceful flag-raising which had taken place in the town Genyem on July 1,
1999, were charged with rebellion by a state prosecutor in Jayapura.
Although those charges subsequently were dropped, at the time this report
was being prepared authorities were continuing investigations into a series
of peaceful flag-raising ceremonies held throughout the province on December
1, 1999 and nine people already had been named as suspects.

Human Rights Watch takes no position on Papuan claims to self-determination,
but it supports the right of all individuals, including independence
supporters, to express their political views peacefully without fear of
arrest or other forms of reprisal. To the extent individuals are arrested
and imprisoned for peaceful participation in symbolic flag-raising
ceremonies, such treatment constitutes arbitrary arrest and detention in
violation of international standards. According to the U.N. Working Group on
Arbitrary Detention, which visited Indonesia in February 1999, the majority
of individuals then facing charges in connection with flag-raising
ceremonies in Irian Jaya were being held for peaceful expression of their
views and, as such, their detention was arbitrary and in violation of
international law. Under the new administration, the number of cases is
down, but Indonesia has continued to prosecute organizers of peaceful
protests.

Papua, Indonesia's largest province, comprising more than one-fifth of the
country's total land area, was first put under Indonesian control in 1963.
It was formally incorporated into Indonesia in 1969 in a still
controversial, U.N.-approved process. For many years, the province was
categorized as a military combat zone (Daerah Operasi Militer or DOM;
literally, Military Operations Area) and under an effective state of martial
law, ostensibly because of the threat posed by the Free Papua Movement
(Organisasi Papua Merdeka or OPM), an armed group engaged in a generally low
level guerrilla campaign for independence from Indonesian rule. At the same
time, many Papuans sought to express their support for independence through
peaceful means, notably the symbolic public raising of the "Morning Star"
flag which had first been flown openly when local people sought to free the
territory from Dutch colonial rule in 1961.

Under Soeharto, who ruled Indonesia for thirty years until forced to resign
by popular protests in 1998, such flag-raising ceremonies and other
pro-independence manifestations were ruthlessly suppressed. Demonstrators
were forcibly dispersed and assaulted, and leading activists were subjected
to arbitrary arrest and detention. Such activists frequentlywere prosecuted
and imprisoned under harsh laws dealing with subversion and rebellion, as
well as the notorious "hate sowing" articles of the Indonesian penal code.

Indigenous Papuans, who are Melanesians and darker-skinned than the
numerically and politically dominant Javanese and members of most other
ethnic groups in Indonesia, were also subject to ethnic and racial
discrimination. While Indonesian rule brought unprecedented economic
development, it also resulted in an influx of immigrants from other parts of
Indonesia and caused resentment among Papuans as the benefits went
disproportionately to foreign investors and these immigrants.When Soeharto
was forced from power in May 1998, many of these long repressed sentiments
could be made public for the first time.

When he took over following Soeharto's resignation, President B.J. Habibie
initially made efforts to recognize and apologize for the human rights
violations committed under his predecessor. But the new administration's
willingness to acknowledge past abuses in general terms was not accompanied
by concrete measures to establish justice or redress for the victims. In the
meantime, demands for independence mounted.

The strength of pro-independence sentiment was unmistakable as early as
February 1999, when 100 leading Papuan leaders met with President Habibie to
initiate what was being hailed as a "National Dialogue" on Papuan concerns.
But the leaders presented President Habibie with a single demand:
independence. This clearly shocked and displeased the Habibie government,
which had encouraged the National Dialogue up to then, and the process was
soon suspended. In April 1999, the government reverted to the methods used
during the Soeharto era, attempting to round up independence supporters and
censor discussion of the subject. The crackdown included bans on expression,
assembly, and association, arbitrary arrests, and widespread intimidation of
independence supporters. With nationwide demands for democratization still
mounting across Indonesia, however, opposition voices could not easily be
silenced. The result was an uncertain atmosphere in which, even as the
crackdown was underway, Papuan leaders continued to assert their right to
advocate Papuan independence. In July and September 1999, at least four
demonstrators were seriously injured, one of whom subsequently died in
custody, and thirty-two were arrested after police moved in to disperse what
had intially been peaceful flag-raising ceremonies.

In October 1999, following democratic elections, a new government took
office in Indonesia under President Abdurrahman Wahid, and promptly
initiated a number of reforms. Openly acknowledging the errors of the past,
the new administration moved quickly to allow greater freedom and to permit
the open expression of pro-independence views. Peaceful Papuan
flag-raisings, which had been broken up under Soeharto and Habibie, were now
permitted and were held without police interference in at least a dozen
places in Papua on December 1, 1999. The next day, however, there was a
violent clash between police and demonstrators at a flag-raising in Timika
in which six people were shot by police and dozens were injured. When he met
local community leaders at Jayapura on December 31, President Wahid assured
them that flag-raisings and other peaceful expression of pro-independence
views should and would be considered protected acts of free speech. At the
same time, Wahid stated unambiguously that the Indonesian government was not
prepared to accede to Papuan demands for independence.

During a visit to Irian Jaya in December, 1999, Indonesia's new minister for
human rights, Hasballah Saad, acknowledged the link between the past lack of
accountability for human rights abuses suffered by Papuans and the growth of
the separatist movement within the territory, and announced that a new
center for human rights study and advocacy would be established in Irian
Jaya. "If human rights are not respected . . . that could in turn provoke
people to ask what maintaining the unity of the Republic is for," Saad was
quoted as saying. "This circumstance could in turn encourage people to fight
for an independent state."2

This report details violations of civil and political rights in Papua from
the beginning of 1999, including those associated with the National Dialogue
and subsequent symbolic flag-raising ceremonies. At the outset, it provides
an overview of independence demands, then describes the rise and fall of the
National Dialogue and the crackdown that followed. It also reviews
developments since President Abdurrahman Wahid came to power in October 1999.

As this report was being prepared, Human Rights Watch learned of disturbing
developments in Merauke and Nabire in which groups of armed Papuan
neighborhood patrols (Satgas Papua) clashed with police and troops, an
incident in Fak Fak in which villagers clashed with the entourage of a local
government official, and communal violence in Entrop, near Jayapura, in
which a Papuan mob attacked non-Papuan shopkeepers. There were also reports
that, in response, non-Papuan transmigrant residents in the province were
being provided with firearms by government officials, and that, in at least
one district, an East Timor-style pro-government militia was being set up.
These reports, if true, make it all the more imperative that respect for
basic civil and political rights and strict implementation of the
distinction between peaceful advocacy and violent criminal acts be made
components of any long-term solution in Papua. Although the Indonesian
government has recognized such rights in principle, it has not yet
consistently respected those rights in practice.

1 The names "Papua" and "Irian Jaya" are used interchangeably in this report
to refer to the province.

2 "Rights abuses fed separatism in Irian Jaya," Jakarta Post, December 10,
1999; "Indonesia proposes rights center in Irian Jaya," Radio Australia,
December 9, 1999.
***********************************************************
Charles Scheiner
National Coordinator, East Timor Action Network/US
P.O. Box 1182, White Plains, New York 10602 USA
Telephone:1-914-428-7299; fax:1-914-428-7383 cell:1-914-720-9205
charlie@etan.org PGP key available on request.
Check out ETAN's web site: http://www.etan.org
For information on East Timor write info@etan.org

======================================================= Subj: KABAR-IRIAN: [EN] Moving a Mountain a Day: Freeport's Grasberg Grows Six-Fold
Date: 6/27/00 10:07:49 AM Central Daylight Time
From: admin@irja.org
Sender: owner-kabar-irian@irja.org
Reply-to: admin@irja.org
To: kabar-irian@irja.org

Too much mail? Try our digest version. Info available at
http://www.irja.org/conf.htm


---------- Forwarded message ----------
Date: Tue, 27 Jun 2000 11:05:29 +0100
From: Tapol

Engineering & Mining Journal
June 2000

Moving a Mountain a Day-Grasberg Grows Six-Fold

By: Richard W. Phelps

Grasberg may be the mining equivalent of Jules Verne's science fiction
writings becoming reality. In 1936, characterizing the copper deposit in
the remote wilds of the Island of New Guinea, Jean Jacques Dozy, the Dutch
geologist who discovered the Grasberg's precursor, Ertsberg, said it was
"like a mountain of gold on the moon." The "moon" was captured, albeit
decades and one world war later.

The above sum-of the approximately equal capex/opex plus surface and
underground mining-cost inputs (/mt)-yields the world's lowest-cost primary
copper.

At E&MJ's last visit in 1991, Freeport McMoRan Copper & Gold Co.'s (FCX)
mill processed 37K mt/d; it has expanded more than five-fold since then, to
some 230K mt/d. Moving a mountain a day is no mere boast; at 700K-mt/d
material, it is equivalent to moving the Great Pyramid of Cheops (2.6M
m[ superscript] 3 and its weight 5.75M mt) nearly once a week. And with
current expansion plans afoot, it will be done on a five-day basis in the
near future.

Operations

Flying up to Grasberg in a helicopter gives the best perspective of how big
the mine and mill complex have become without enduring the challenges of
terrestrial access. On the ground, some things seemed like deja-1991 in
driving the port-to-mine road: convoys of double-trailer tractors haul
containers of bagged ammonium-nitrate blasting agent from the port to the
mill site. There, the 600-kg bags are loaded on the world's longest aerial
tramway. It is then hoisted to the mine. Given the character of much of the
ore, it is often called "poker chip" diorite (1.5 mt/loose-m[ superscript]
3),
due to how it degrades from weathering. At the bottom of the ore zone,
density
runs 2.3-2.4 mt/loose-m[ superscript] 3.

Benches have been increased from 9 m to 15 m with a 65degrees face angle
and 45degrees overall angle; overburden benches are 15-m and 17-m high,
with a 42degrees overall angle. Correlatively, the pit slope has been
boosted from 42degrees to 45degrees and it is "not near the ultimate pit
profile." With the geometry of the pit, Steve Drake, Grasberg Operations
Manager, indicated that there are "three to four push backs underway at all
times." In ore, blasthole drills make 12.75-in. dia holes on a 9 x 8 x 17-m
pattern with a powder factor (Anfo) of 0.15-0.25 kg/mt. The equivalent
figures in waste are 12.75-15.0-in. dia holes on 10 x 11 x 17-m pattern
with a powder factor (Anfo) of 0.12-0.15 kg/mt.

Given the lightness of the waste, Drake said, "It is virtually impossible
to overload truck beds, even the so-called 'throw-away' bodies." Hence,
most trucks are "sideboarded to the sky" and have 200-m[ superscript] 3 body
capacities correlating to 254-258 mt.

Conditions are as challenging as any mine in the world. The pit floor is at
3,700-m elevation, while the pit overlook is situated at 4,100 m. With
glaciers as neighbors, it was not surprising to hear Drake's description of
haulage and loading precautions taken when fog-the greatest safety hazard
for the mine-rolls in in the early morning. One might think that, given the
8-m/yr rainfall at the mine (11 m at the mill), drainage would be a
problem. It is not. Instead of spending $12M on conventional surface-sited
dewatering, some $2M was invested in underground dewatering via the Amole
adit. With a flow of about 20K gal/min, the water table has dropped 400 m
and is falling an average 1 m/wk as this article is written.

As production rises, maintenance sees further emphasis, with available
truck bays doubling in 2000 (more than 700 mobile vehicles of all sizes are
operated). And, like two American football teams squaring off, it was a
sight to see one side filled with Caterpillar trucks facing the other side
full of Komatsu units. Drake indicated that, given the maximum size of the
mine-with some 130 trucks rated at 218-mt capacity-"the mine could afford
to have a mixed truck fleet...to better evaluate the best truck for the
job."

So far, the mine has seen no material differences in performance between
mechanical or electrical drive trucks. The units spend 77% of their time on
grade, with an average 2.5-km haul for ore or waste, and encountering an
average of 100-m adverse lift.

He reviewed the difficulties the mine has encountered with each
manufacturer's trucks (as of late October 1999), from the Cat 793 to the
Komatsu 930. The high altitude coupled with levels of moisture not found at
such elevations at other mines in the world has resulted in turbocharger
burnout, injector failures, etc. With conscientious efforts by the
manufacturers, two years in Cat's case, those problems have been overcome.
With Komatsu 830s, all but one truck has been repowered with the MTU 4000
engines, eliminating most of the problems incurred by those trucks. Current
performance sees more than 500 mt/hr productivity from Komatsu 930 trucks,
while Cat 793s and Komatsu 830s produce 450 mt/hr. Cat 785s yield about 318
mt/hr.

Drake said the mine is "world-class, with stable availabilities in the
mid-70% range for its trucks and 90% for its shovels."

With two routes into the pit and two out, the mine has limited options on
haulage. However, Drake expects 60% of the overburden to be moved by
conveyor in the near future. At a 2:1 stripping ratio and with only truck
haulage, some 230-250 trucks would be required-a clearly untenable
prospect. To avoid that outcome, $57M of $77M approved has been spent for a
fast-track overburden disposal project. It employs a Krupp 63 x 114
crusher, 1-km-long conveyor system, and a 150-m boom stacker that are
currently handling 135K-mt/d waste. The waste is stacked in the Wanagon
basin, adjacent to the pit. This initial-phase system will place 70M-mt
waste into the upper basin, and ultimately handle an additional 400M mt
when expanded into a larger system down the valley. Of the mine's 3B-mt
waste (2.5:1 life-of-mine stripping ratio), some 20% is limestone that
provides natural buffering of waste rock drainage. Over the remaining 14-yr
surface-mine life, the unit will be shifted three times, placing wasteto a
300-500-m depth. While the stacker has a nominal 10K-mt/hr capacity, FCX
believes it ultimately can handle 14K mt/d.

In loading too, FCX has a mixed fleet of P&H 4100A (42 m[ superscript] 3),
P&H 2800 (30 m[ superscript] 3), and BE 495 (43 m[ superscript] 3) shovels,
the
latest three being BEs that enjoy wider tracks, preventing downtime from
being stuck. However, the BEs have less breakout force than the P&H units
in "tough digging," and the overall bucket-fill factor is better in most
areas. Cycle time is slightly faster which produces more tons of waste.
Management said, "The BE is a great match for the Komatsu 930E." O&K 200s
are employed in production, pioneering, and utility work, and so are not
directly comparable. And an older Hitachi EX3500 (20 m[ superscript] 3) also
sees some service.

Given the variability of the ore, blending is required to assure a steady
mill-head grade. Toward that end, all shovels and trucks are equipped with
GPS units feeding Modular Mining's dispatch system. And FCX said it
obtained a 30% boost to productivity with this technology.

Massive, and seemingly inexhaustable as surface reserves are, Santayana's
quote that those who do not know history are doomed to repeat it is
applicable. FCX's operations in Papua (formerly Irian Jaya) began with the
surface Ertsberg pit, which was eventually supplanted by underground
operations. Then the surface Grasberg pit replaced the Ertsberg
underground. The Grasberg underground operation is significant in its own
right and will, over time, complete the surface-to-underground cycle once
again.

While underground operations currently complement Grasberg production,
underground production will be the only source 14 yr hence. Leon Thomas,
manager, U/G Opns., and Noris Belluz, superintendent, U/G Mine Geology,
filled E&MJ in on current and expected underground activity. In brief,
underground exploration is significantly adding to Grasberg totals. Block
caving, on 120 x 120-m centers is the low-cost method employed where
practical. Both the Grasberg underground and Kucing Liar deposits will be
block caved. In other deposits where surface subsidence is to be avoided or
dimensions do not permit-such as the Big Gossan-open-stope mining with
waste rock or cemented fill will be practiced. Plans are in place to allow
underground production to reach 160K mt/d after the Grasberg open pit is
exhausted. On its ramp up to this figure, PTFI will become the world's
largest underground mine. Today the largest underground operation is the
100K-mt/d El Teniente.

Currently, the IOZ mine is being operated while the DOZ is seeing
development. DOZ will ultimately replace IOZ in 2004. As IOZ's cave
matures, the remains of the GBT orebody are mined through IOZ. The same
strategy will follow in the DOZ below the IOZ, to increase overall ore
recovery. Of the IOZ orebody's original 43.5M-mt reserve some 25.9M mt
remains, or 3.5-yr life. The DOZ orebody has reserves of 130M mt with
potential of more than 30M mt in additions. For 1999, the 900 employees
underground, with 35 contractors, should produce 19K mt/d, and in 2000,
some 18K mt/d. By 2001, staffing rises to 1,010. The Big Gossan deposit is
being used as a training school as the mine increases its national and
local manpower. Development of DOZ at 25K mt/d is well advanced. The first
ore will be produced in mid-2000. A feasibility for a further expansion of
DOZ is under way that is aimed to increase production to 35K mt/d.

What of 2000 and beyond? In the long term, production of 230K mt/d is
slated for five years (2001 plus four years), with ore grading 1.04% Cu and
1.2-g/mt Au. Of that, 210-215K mt/d will come from Grasberg (surface) and
20-35K mt/d from underground.

Lastly, Rio Tinto plc's ownership interest (Footnote: Since 1995, it has
had a holding in FCX, now 12.6% after share buybacks. London-based Rio
Tinto has a direct 40% interest in incremental production through expansion
by financing up to $750M for mine development and $100M for exploration
around the mine and in the Papua region.) in the Grasberg operations has
provided technical roundtable access via conference call with the managers
of the Collahuasi and Escondida mines to discuss equipment and methods.

Processing

Once the mines have put their nominal 220K-mt/d "rocks in the box" in the
mills, recovery averages 85% for Cu and 83.5% for Au, with the newer
(expansion) circuits yielding on the order of 90% recovery.

In 2000, the expansion, 38-ft-dia SAG mill is expected to process 105K
mt/d. The value of downtime on the big SAG mill? some $80K/hr. So it is not
surprising that all practical steps are taken to minimize same. Equipment
is in place to change out the entire shell in 40 hr.

Handling 170K mt/d, the thickener is one of the world's largest.

For 1999, the mill averaged 220K mt/d; for 2000 the target is 230K mt/d.

The mill-to-Port of Amamapare pipeline uses two Geho pumps to transmit
7,000-mt/d con. After conventional vacuum filter dewatering, con grading
30% Cu and 31-g/mt Au is stored in barns with 150K-mt capacity. Some
250K-mt/mo con is shipped.

Mill/concentrating performance for 1999 was:

* 80.561M mt milled (equivalent to 220.7K mt (dry)/d)

* 2.605M-mt (dry) concentrate produced, metal contained therein-

-1.69B-lb Cu (765.9K mt)

-2.965M-oz Au (sales exceeded 3M oz)

The plant operated 365 d for 1999, with availability at 77% for the
crushing plant, 98.5% for the North-South concentrator (concentrators Nos.
1 & 2), 93% for the No. 3 concentrator, and 91% for the No. 4 concentrator.

Exploration

What supports the world-class operations and logistics described above?
Land, and lots of it.

FCX originally was awarded a 2.6M-ha concession that saw additions of a
further 1.5M ha, and, with mandated relinquishments, leaves FCX with a land
position of 1.0M ha.

Regional plate tectonics underlie the mineral bounty on tap for FCX.
Indeed, the mineralization activity exploited in Papua New Guinea is very
similar to that found by FCX.

Regional reconnaissance began in 1990, and from the very beginnings of FCX
exploration in the 1960s, it has not been daunted by the formidable
physical challenges. In the early days it put helicopters to their altitude
limits, including transporting drill rigs. In recent years, FCX has refined
a very effective field technique-heli-hoisting. It is utilized in order to
minimize environmental impact otherwise necessary to land helicopters and
personnel. Crucial to its safe use is the fact that any team or crew member
can abort the process at any time.

Nor have the nonphysical, i.e. lower prices, elements severely dampened FCX
exploration budgets ($17M in 1999 vs. $38.5M in 1996). Freeport remains
quite active in Papua, both within the immediate vicinity of Grasberg as
well as beyond, reflecting the bullishness of its CEO (and geologist by
education) J.R. Moffett.

The results in the Ertsberg mining district speak for themselves: more than
2B-mt ore averaging 1.13% Cu, 1.05-g/mt Au, and 3.8-g/mt Ag.

During explorationists' review-using Vulcan 3-D-software
demonstrations-they told E&MJ that the deep reserves are "huge...and may
require an additional mill." Those reserves, excepting the Grasberg
porphyry, are skarn. The Grasberg underground exploration is likely to add
50M-mt reserves in 2000. While the depth of the Grasberg is being probed,
the current focus is on delineating the Kucing Liar deposit.

Interestingly, one of FCX's biggest exploration successes, the Kucing Liar
(wildcat) deposit, was found via geologic reasoning, and intersected
early-on by dewatering drifting. It is currently being bulk-sampled and
reserves are rising to more than 400M mt.

Dewatering is another focus in drifting to the Wanagon deposit. All acid
mine rock drainage is to be captured, with molecular recognition technology
expected to yield copper cathode.

Outside Contract of Work (CoW) "A" (where mine and logistic operations are
situated), FCX has three affiliates: PTFI, P.T. Nabire Bakti Mining (with
Goldfields), and P.T. Irja Eastern Mining. They actively work through the
exploration group led by District Managers Wahyu Sunyoto and Gary
O'Connor's three national supervisors, and several expat geologists, all
part of a large geoscientist group looking primarily at three principal
target types:

* Porphyry- >250M mt grading 1% Cu equivalent;

* Skarn- >100M mt grading 2% Cu equivalent; and

* Gold- >5M oz contained.

In 1990-91 and 1994-95, the group conducted an extensive survey of
prospective areas outside the original CoW, in part to determine what areas
would be turned back, according to a government time schedule. More than
8,250 stream sites were so sampled via environmentally friendly helicopter
drop-in/hoist-out. A tight, 1-sample/4 km[ superscript] 2 grid was developed
and coordinated with aeromagnetic surveys in 3-D models. All 63 anomalies
remaining from the initial 72 will have been visited and will need to be
assessed in 2000.

What is the exploration bottom line? Most explorationists would be quite
pleased to find gold for $10/oz. That was the result cited for the Wabu
skarn deposit's geological resource that totals 117M mt material, grading
2.16 g/mt (8.1M oz). Its 500-m width strikes 6 km and is open in several
directions. In the NBM Block II, Sunyoto and team have defined two
resources exceeding 500M mt porphyry-material grading 0.3-0.5% Cu, with
significant potential for higher grade. Indeed, Sunyoto added that he
believes that Papua is the "most (geologically) unexplored region on earth."

The reader should also bear in mind that the exploration province involved
comprises high-relief topography, with climatological ranges from tropical
rainforest to high-altitude glacial terrain-engendering considerable
logistical complications. The foregoing can only hope to give a flavor of
current efforts and cannot address the considerable depositional modeling
and orebody genesis analysis done by FCX.

Hence, the bottom line is "copper equivalents" are considered with economic
benchmark levels of $300/oz Au and 90cents/lb Cu.

Power

Until recently, all electric power was provided by diesel-powered gensets.
In a remarkably short period, some 20 mo, a Duke Energy/Fluor Daniel joint
venture built a three-unit, combined 195-210-MW coal-fired power plant to
be owned by P.T. Puncak Jaya Power, and operated by P.T. Nusantara Power
Services. All are joint ventures led by U.S.-based Duke Energy. Situated at
the port of Amamapare, it receives Indonesian-sourced coal. Early on, it
was hindered by a glitch-the effect of rainfall was underestimated, and the
coal stockpile actually slid off its pad. Not surprisingly, clumped coal
was a major handling problem. The creative solution was erection of a
low-cost canopy designed in Australia, but fabricated on-site by FCX's
General Superintendent, Dewatering, Loading Operation, and Construction,
John Pickering. As is sometimes the case, quality of delivered coal has
deteriorated over time, with sulphur levels rising. That said, the plant
was fundamentally built to U.S. environmental-protection standards.
Coal Plant Manager Rick Roberts told E&MJ that the conventional design's
boiler supplies superheated steam to a Mitsubishi turbine. It, in turn,
feeds a 230-kV transmission link to a master control at Ridge Camp, near
the mine, and then to the mine and mill. Given the single customer,
nondiffused load involved, Roberts said mutual understanding and
coordination is key-especially when the massive SAG mills are started and
stopped. In any event, diesel units are needed to buffer load fluctuations.
Roberts indicated that a load-shedding system has proven to be very useful.
Two banks of cooling towers were designed for salt and freshwater
respectively. However, the operations are shifting to freshwater entirely
to eliminate corrosion issues.

Building for the future, the control room is staffed with graduate
engineers, as is the maintenance department.

Provision was made in layout to add a fourth unit as needed. P.T. Nusantara
Power Services is also working with Newmont Mining at its Batu Hijau mine
in Indonesia.

Logistics

When E&MJ visited Grasberg in 1991, some six container ships/mo were
required for the 37K-mt/d (ore) operation. Today, the 230K-mt/d (ore)
output commands 15 container ships/mo. The port at Amamapare has been
debottlenecked in the sense that the road to the mine and mill has been
completed directly to the port. In the past, transhipment via smaller
barges to the road's terminus 10-km upstream was required.

Until 1990, two of the world's longest aerial tramways provided access to
Grasberg. After 22 mo construction costing $2M-about 80% lower than outside
contractors' estimates-and ending July 1992, the 10-km long HEAT-"heavy
equipment access trail," was completed from the 2,800-m elevation to the
mine at 4,100 m. Some 2,180-hp motive power is typically required, and 250
lb metal is worn off skid runners, on each trip. The trail has been the
single-largest contributor to the mine's subsequent expansions.

Safety

Always a key factor in mining, Grasberg, despite its remote location, seeks
to meet developed-world norms in safety. The proof can be seen in the
figures (Footnote: Includes company plus privatized- and
contractor-affiliated employees.) for 1999: three fatal and 30
lost-time-accidents for a 0.15 rate (per 200K manhours), more than 40.507M
manhours. More detail on actual performance is shown in the sidebar,
"Grasberg at a Glance." Property losses, due to 284 incidents of accident
and fire, totaled some $700K for the year.

Environment

FCX's Environmental Dept. undertakes a broad spectrum of planning and
operating activities within FCX's CoW, including:

* long-term environment monitoring,

* analytical lab services (1,000 m[ superscript] 2 facility with the
Indonesian government's highest quality rating),

* reclamation,

* recycling/solid-waste management,

* information and education, and

* interdepartmental interfacing.

Supporting its activities-from nearby glaciers (retreating for the past 150
yr) to tropical coastal estuaries-are state-of-the-art biological and
chemical labs with equipment such as atomic absorption spectrometers, etc.

Environmental spending at minesite for 1999 was $15M, and the spending
budget for 2000 is projected to be $20M.

Reclamation

To minimize risks, including seismic factors, FCX has established
deposition of tailings downstream from the mine/mill, but before
termination in the sea.

It has established levees to control deposition and prevent sheet flow of
tailings (E&MJ, December 1999, p. 34).

In a multiuniversity cooperative effort, with on-site, resident
researchers, FCX's Dr. Yahya Hasin is lowlands environmental
superintendent. He showed E&MJ the extensive test plots adjacent to the
levee below the town of Timika.

A wide range of agricultural and nonvaluable vegetation thrive in a
noninterventionist (fertilizer-free) setting. Indeed, volunteer grass
self-germinates in tailings within about a month with no soil amendments
whatsoever.

Community Affairs

One of the biggest changes since E&MJ's 1991 visit is in the area of
community development. Nonmine/mill-assigned national and expat staff are
no longer concentrated at Tembagapura. A Woodlands, Texas-like fully
planned development, with single family homes in a greenbelt setting, has
been established. Anchoring the development is a town center with
commercial businesses and FCX's administrative offices.

And, given the dramatic growth of the Timika area, FCX is assisting in
regional planning efforts. This complements FCX's ongoing support of a
business incubator program to develop local entrepreneurs.

Lastly, federal legislation is being implemented to provide more autonomy
for Papua, this may incorporate subdividing the province into three, with
one likely to be centered in Timika. A major shift will see a large share
of royalties and taxes paid by FCX staying in the province.


**************************************************
Paul Barber
TAPOL, the Indonesia Human Rights Campaign,
25 Plovers Way, Alton Hampshire GU34 2JJ
Tel/Fax: 01420 80153
Email: plovers@gn.apc.org
Internet: www.gn.apc.org/tapol
Defending victims of oppression in Indonesia and
East Timor, 1973-2000
**************************************************



KABAR IRIAN ("Irian News") www.kabar-irian.com
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======================================================= Subj: KABAR-IRIAN: [EN] IRIAN JAYANS OPPOSE REDUCTION OF PT FREEPORT`S PRODUCTION (fwd)
Date: 6/27/00 10:07:35 AM Central Daylight Time
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---------- Forwarded message ----------
Date: Tue, 27 Jun 2000 22:00:48 +0800
From: Anne Noonan

>From AWPA

IRIAN JAYANS OPPOSE REDUCTION OF PT FREEPORT`S PRODUCTION
Tuesday, June 27, 2000/4:39:27 PM

Jakarta, Jun 27 (ANTARA) - The Irian Jayan Brotherhood Deliberation Body
(Bamusmirja) in
Jakarta has questioned the wisdom of a recommendation by the State
Minister for Environment on reduction of production by PT Freeport
Indonesia.

"This (recommended reduction) would have a serious impact upon the
regional tax and the contribution by one percent to the customary (adat)
society in the contract area of PT Freeport Indonesia," Chairman Willem
Frans Ansanay told the press here on Tuesday.

According to Willem, the production reduction would hamper development
in Irian Jaya and instigate conflicts between the receiver of the
one-percent contribution and PT Freeport.
In this connection, the deliberation body urged the State Minister for
Environment to review his recommendation for the reduction of PT
Freeport`s production.

The deliberation body also questioned the reasons behind the suggestion
of the House of Representatives (DPR) to review the existing contract
with PT Freeport. "Are there positive legal bases to unilaterally
abrogate a contract, which has acquired law enforcement?" Willem argued.

Willem maintained that it might be better to refer the issue to the
Papua Regional Administration as the consequence of the regional
autonomy. Willem also claimed that PT Freeport has always fulfilled its
commitments, to the central as well as the regional government.

"But, the mining company has always been blamed (in any conflict)," he
said. According to Willem, it would be well advised for the Central
Government and the House of Representatives to take the role of
mediators in a dialog between the adat society and PT Freeport
Indonesia.
------------------------------------------------------------------------

Australia West Papua Association
PO BOX 65
Millers Point
Australia 2000
------------------------------------------------------------------------


KABAR IRIAN ("Irian News") www.kabar-irian.com
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