| BUSINESSWEEK ONLINE : JULY 31, 2000 ISSUE | ||||||||
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| INTERNATIONAL -- ASIAN BUSINESS
Freeport's Checkered Record HUMAN RIGHTS PROBLEM Human rights groups and local inhabitants accuse Freeport of complicity with the Indonesian military's detention, torture, and murder of civilians. RESPONSE Freeport requires employees to report any abuses and to state in writing that they have not seen or participated in any violations. Freeport has commissioned an outside audit and appointed a human rights expert as special counsel. But the audit was delayed, and local Freeport officials don't have time to assure compliance. ENVIRONMENT PROBLEM Freeport dumps 200,000 tons of silt into local rivers every day, turning a 230-square-kilometer lowland delta into a gray, treeless desert. RESPONSE Freeport built levees to prevent spills and pledged to replant 75 hectares a year through 2015, when the mine will be depleted. Environmentalists assert that the company isn't doing enough and that vast areas will remain contaminated. But Freeport says that remaining land can be used for farming. DISTRIBUTION OF WEALTH PROBLEM The Amungme, who have traditional claim to the mine area, say that Freeport doesn't share enough revenues for use of their land and employs too few locals. RESPONSE In 1996, Freeport began spending 1% of net revenues a year, about $16 million, on community development projects. In addition, it named a tribal chief to the board of its Indonesia subsidiary. In response to Amungme demands for a 50-50 split of revenues, Freeport is negotiating with tribal leaders to provide more compensation. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Freeport-McMoRan: A Pit of Trouble (int'l edition) MAP: West Papua, Indonesia TABLE: Freeport's Checkered Record INTERACT E-Mail to Business Week Online | |||
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