DOCSLIB.ORG

ICSG Information Paper Indonesia's Experience Mining and Copper

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
ICSG Information Paper Indonesia's Experience Mining and Copper ICSG Information Paper Indonesia’s Experience Mining and Copper 1990-2000 February 2002 Notice: The information contained in this document is intended to provide an overview of the current situation in Indonesian Mining and Copper sector. This paper is provided for reference purposes only. References to sites, companies, and agencies are for information purposes only. For further information regarding this document please contact Mr. Juan Carlos Guajardo Beltrán, Economist, International Copper Study Group ([email protected]). International Copper Study Group Rua Almirante Barroso, 38-6, 1000-013 Lisbon, Portugal Tel: +351-21-351-3870 Fax: +351-21-352-4035 OECD Foreign Investment Conference Paris, February 2002 Indonesia’s Experience Mining and copper 1990-2000 International Copper Study Group1 Abstract Mining foreign direct investment2 has been important to Indonesia in the last decade but even more so since the financial regional crisis in Asia and the internal changes that followed. Since the nineties, Indonesia has received large amounts of FDI inflows in every economic sector. The crisis which started in 1997, however resulted in an exit of important component of previous FDI inflows. The long-term requirements condition of mining investment means that the copper projects which started in the early nineties and which finished only some years ago, compensated in part the strong FDI flow exits. As every mining project, there are not only economic consequences on the country and specific area where the project is developed but also environmental and social impacts. This paper strives to show the relationship between FDI in the copper sector and its impacts on Indonesia at a national and local level from a Sustainable Development perspective. Overview of Indonesia Indonesia is the fourth most populated country in the world with 210 million persons in 2000, making it a key country in South East Asia. Geographically, it is a widely dispersed country with 17,500 islands spread over 5,000 Km. over the Equator latitude as showed in Figure 1. 1 Notice: The information contained in this document is intended to provide an overview of the current situation in Indonesian Copper sector. This paper is provided for reference purposes only. References to sites, companies, and agencies are for information purposes only. 2 This paper is focused on mining sector and does not address investment issues related activities (smelting, refining, etc…). 1 Figure 1 Map of Indonesia Indonesia gained economic relevance in the nineties when it received important flows of FDI and was highlighted by international organizations as a result of economic performance. However, financial instability in 1997 strongly shocked Indonesia, reverting the FDI inflows and causing an internal crisis that eventually led to the end of the Suharto regime established in 1965. The internal consequences continue to this day. Table 1 Indonesia Economic Basic Facts 1996 1999 2000 GDP growth (Annual %) 7.8 0.8 4.8 GNI per capita GNI Atlas method (current US$) 1,110 580 570 % World Atlas method (current US$) 0.7% 0.4% 0.4% Population Million 197.2 207.0 210.4 % World 3.5% 3.5% 3.5% Surface Area (million sq. km) 1.9 1.9 1.9 % World 1.4% 1.4% 1.4% Employment Thousands - - 89,837.7 Source: World Bank except Employment, International Monetary Fund IMF, Dissemination Standards Bulletin Board (DSBB) 2 Table 2 Environmental Basic Facts 1996 1999 2000 Annual % Change - - 1.2 Deforestation World mark - - 0.2 Fresh water Cubic meters - 13,708.7 - resources per capita World mark - 8,240.4 - CO2 Emissions Metric tones per capita 1.3 - - World mark 4.2 - - Electric power Kwh 288.8 - - consumption per capita World mark 2,042.9 - - Source: World Bank - Not Available / Not Applicable Foreign Investment Indonesia has received 21,252.5 million dollars of FDI since 1970, and was during the nineties one of the main undeveloped recipient countries in the world, as shown in Figure 2. Figure 2 FDI Indonesia 1970-2000 8,000 6,000 4,000 2,000 0 Million Dollars 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 -2,000 -4,000 -6,000 Source: 1970-1997, "The World Bank World Development Indicators 1999 on CD-ROM (Development Data Group, The World Bank, Washington, D.C., 1999). 1998-2000, "UNCTAD "World Investment Report 2001: Promoting Linkages" 3 The 1997 crisis has affected Indonesia strongly and negative flows are observed in the last three years due to the exit of previous investments. FDI inflows in Southwest Asia has decreased from 30% of the world total in the middle 90's to just 10% in last decade. One of the main reasons is the Indonesian disinvestments as shown in figure 2. The national FDI regulations introduced after the 1997 crisis has been, in general terms, more restricted than those in the precrisis period. Two important laws were discussed into the Indonesian Parliament in 1999: Law No. 22/1999, Regional Political Autonomy, and Law No. 25/1999, Fiscal Decentralization. In spite of the application of these laws, which started recently, Law No. 22 set up the election of regional and local authorities that previously were appointed by the central government. Law No. 25 mandates that a minimum of 25% of domestic revenue would be transferred to local governments through the General Allocation Fund. In addition, the Provincial Governments and other local governments of areas where mining operations were located would receive after-tax royalties, such as 15% from oil, 30% from natural gas, and 80% from mining, fishing, and forestry. Also, Law No.41/1999 on forestry prohibits open cast mining. In Irian Jaya, about 68% of the area potentially available for mining exploration was covered by protected forest; 53%, in Sumatra; 50%, in Maluku; 39%, in Sulawesi and 33 percent in Kalimantan3. The environmental regulation in Indonesia falls under the responsibility of the Minister of Environment and BAPEDAL (National Environmental Impact Analysis Board, Indonesia’s Environmental Regulatory Agency). The main environmental regulation that affect the mining sector started with the Mining 1967 law, currently under revision (June 2001) by the Ministry of Energy and Mineral Resources (MEMR). The other important legal regulations are the Living Environment Law (1982), Ministerial Decree Concerning the Prevention and Remedial of Damage and Pollution, Bond Reclamation (1986) and the Environmental Impact Assessment (EIA). Mining Sector4 The mining sector, including oil and gas, contributed 9% to Indonesian GDP in 2000 as shown in Figure 3. 3 United States Geological Survey, USGS, 2000, (U.S. Embassy, Jakarta, Indonesia, November 30, 2000 and Petrominer, 2001). 4 Mining sector includes oil & gas otherwise is mentioned. As was mentioned before, industrial process related to mining (smelting, refining, etc), are not include in this information, underrepresenting the total contribution by mining related activities to the Indonesian economy. 4 Figure 3 Source: International Monetary Fund IMF, Dissemination Standards Bulletin Board (DSBB) The mining and quarrying sector increased by 2.3% in 2000; this sector had declined by 2.4% in 1999. According to a Pricewaterhouse Cooper's 2001 report5, the mining industry contributed strongly to Indonesia's economy in recent years (Table 3). The value of mining exports was about 11% of total exports that year. Table 3 Mining Contribution to Indonesian Economy Billion Rp. 1994 1995 1996 1997 1998 1999 2000 Contribution to 1,809.80 2,779.70 3,233.66 4,104.13 11,443.69 11,632.22 13,572.40 Indonesian economy Employee - - 247.93 290.97 546.98 844.23 964.95 compensation Purchase from - - 1,214.47 1,455.83 3,050.22 3,233.65 4,842.60 domestic suppliers Government - - 1,489.91 1,921.03 6,765.15 6,962.99 6,843.76 revenue Dividends paid to - - 140.90 177.94 203.32 297.86 657.58 Indonesian shareholders Interest paid to - - 140.45 267.36 878.02 293.50 263.52 Indonesian companies/banks Source: PricewaterhouseCoopers 2001. - Not Available 5 Indonesian Mining Industry Survey 2001. PricewaterhouseCoopers. 5 For the mining sector, the total export value of Indonesian minerals, was $3.0 billion; copper ore and coal accounted for 93% of this amount. Other major export commodities were bauxite, dimensional stone, nickel ore, and tin. Plywood, garments, textiles, processed rubber, palm oil, and electrical apparatus dominated Indonesia’s manufactured exports in 20006. The Indonesian production of mineral commodities in 2000 is shown in Table 4. Table 4 Production of mineral Commodities Indonesia 2000 Bauxite tonnes 1,551,000 Copper tonnes 1,004,600 Gold kilograms 124,596 Iron tonnes 489,126 Nickel tonnes 98,200 Silver kilograms 255,578 Tin tonnes 51,269 Coal tonnes 76,000 Coal tonnes 76,800,000 Gas, natural Million cubic meters 82,334 Petroleum & Thousand 42-gallon 516,070 Condensate barrels Source: ICSG, 2001 and USGS, 2000. Mining sector issues are coordinated by the Ministry of Energy and Mineral Resources (MEMR). In 2000-2001 the Ministry was reorganized, and, among other changes, resulted with the Directorate General of Mining being merged into the Directorate General for Geology and Mineral Resources. The Ministry of Energy and Mineral Resources (MEMR) and other related departments jointly drafted a new mining law/regulation to replace Law No. 11/1967 with an updated regulatory framework that recognizes the changing role of Government, especially with regard to implementation of regional autonomy and fiscal decentralization and further safeguarding of the natural environment7. Up to now, foreign private companies or foreign/Indonesian joint ventures engaged in mining in Indonesia are either contractors working for the Government of Indonesia which operate under ‘Contracts of Work’ (CoW) for base metals, or ‘Coal Contract of Work’ (CCoW) for coal mining.
Load more

Recommended publications
  • Highlights on Indonesia's Copper Industry
    Deloitte Indonesia Perspectives | Second Edition, February 2021 Highlights on Indonesia's copper industry 1. In 2017 Indonesia was the 11th largest copper mining 5. Other than Grasberg, Indonesia’s copper deposits producer in the world with production capacity include Amman’s Batu Hijau mine and the nearby equivalent to 600 thousand tons per annum. Elang copper-gold deposit in Sumbawa, and PT Merdeka Copper Gold Tbk’s Tujuh Bukit which is 2. However, Indonesia’s copper production has been located in Banyuwangi, East Java. The Elang copper- decreasing gradually since 2016, from 695.900 metric gold resource is in the exploration stage. It has an tons to 400,200 in 2019 (according to the World estimated deposit of 12,945 billion lbs of copper. Bureau of Metal Statistics) Potential annual production could be 300-430 million. 3. The Grasberg minerals district in Papua, which is 6. PT. Freeport Indonesia and Tsingshan Steel have operated by PT Freeport Indonesia, includes open- agreed in principle the development of a new USD1.8 pit and underground mines. It has produced 528 billion smelter in Teluk Weda, Halmahera. A definitive billion ounces of copper, including more than 432 agreement is expected to be signed before March billion ounces of copper from the Grasberg open pit 2021. between 1990 and 2019. 4. Extraction of ore from the Grasberg Block Cave Editoral team in collaboration with underground mine commenced in the second quarter Paulus Miki Kurniawan of 2019, which is the same ore body mined from the Paulus Miki Kurniawan is a Merger and Acquisition surface in the Grasberg open pit.
    [Show full text]
  • Scope Key Findings Methodology
    CORPORATE INTEGRITY The Freeport-McMoRan Inc. (Freeport-McMoRan) 2018 Working Toward Sustainable Development (WTSD) report, including information referenced by the Global Reporting Initiative (GRI) Sustainability Reporting Standards published on the Freeport-McMoRan web site, has been prepared by the management of Freeport-McMoRan who are responsible for the collection and presentation of this information. SCOPE Corporate Integrity Ltd., in accordance with Freeport-McMoRan management’s instructions, was asked to perform: 1. A review of policies and systems in place in relation to the International Council on Mining & Metals (ICMM) Sustainable Development (SD) Framework – using as a basis the ICMM Sustainable Development Framework: Assurance Procedure and the core option of the GRI Sustainability Reporting Standards. 2. A review of statements made in the 2018 WTSD report and information referenced by the GRI Content Index. Our assurance work covered Subject Matters 1 to 5 referred to in the ICMM SD Framework: Assurance Procedure. Our assurance work scope covered all the Freeport-McMoRan mining and metals processing operations defined by the reporting boundaries of the 2018 WTSD report. The work involved selective reviews of documents, interviews and site visits to: • Cerro Verde Mine, Peru; • El Abra Mine, Chile; • Atlantic Copper Refinery, Spain; • PT Freeport Indonesia (PTFI)- Grasberg Mine, Indonesia; • Morenci Mine, USA • Safford Mine, USA • Sierrita Mine, USA; and • Head Office, Phoenix, USA. The review also involved a desktop review and telephone interview with management of: • Stowmarket Chemical Conversion Plant, UK; • Rotterdam Chemical Conversion Plant, Netherlands; • Bayway Copper Product Manufacturing Plant, USA; • Norwich Copper Rod Plant, USA Freeport-McMoRan’s site visit programme is part of an ongoing process to conduct this assurance scope of work at all major Freeport-McMoRan mining and processing sites at least one time every three years.
    [Show full text]
  • Freeport-Mcmoran Copper & Gold Inc. Announces Revised Operating
    Financial Contacts: Media Contact: One North Central Avenue Phoenix, AZ 85004 Kathleen L. Quirk David P. Joint William L. Collier (602) 366-8016 (504) 582-4203 (504) 582-1750 Freeport-McMoRan Copper & Gold Inc. Announces Revised Operating Plans in Response to Weak Market Conditions • Reduction in Copper Production and Sales of 200 million pounds (5%) in 2009e and 500 million pounds (11%) in 2010e Compared with Previous Estimates • 18% Reduction in Estimated 2009 Unit Site Production and Delivery Costs Compared with 2008e • $1.2 billion Reduction (50%) in Estimated 2009 Capital Expenditures Compared with Previous Estimates • Suspension of Common Stock Dividend PHOENIX, AZ, December 3, 2008 – Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced today revised operating plans in response to the recent sharp decline in copper and molybdenum prices to incorporate reduced production levels, operating and administrative costs, exploration costs and capital expenditures. Since completion of the Phelps Dodge acquisition in March 2007, FCX’s business strategy has been focused on defining the potential of its resources and developing expansion and growth plans to deliver additional volumes to a growing marketplace. Following the more than $10 billion in debt reduction during 2007, FCX’s financial policy was designed to use its cash flows to invest in growth projects with high rates of return and return excess cash flows to shareholders in the form of dividends and share purchases. In response to the dramatic recent shift in global economic conditions, FCX has revised its near-term business strategy. LME copper prices averaged $3.61 per pound in the nine-month period ending September 30, 2008, $2.23 per pound in October 2008 and declined further to average $1.69 per pound in November 2008.
    [Show full text]
  • Examples of Coupled Human and Environmental Systems from the Extractive Industry and Hydropower Sector Interfaces
    Examples of coupled human and environmental systems from the extractive industry and hydropower sector interfaces Marcia C. Castroa,1, Gary R. Kriegerb, Marci Z. Balgeb, Marcel Tannerc,d, Jürg Utzingerc,d, Maxine Whittakere, and Burton H. Singerf,1 aDepartment of Global Health and Population, Harvard T. H. Chan School of Public Health, Boston, MA 02115; bNewFields, Inc., Denver, CO 80202; cSwiss Tropical and Public Health Institute, CH-4002 Basel, Switzerland; dUniversity of Basel, CH-4003 Basel, Switzerland; eCollege of Public Health, Medical and Veterinary Sciences, James Cook University, Townsville, QLD 4811, Australia; and fEmerging Pathogens Institute, University of Florida, Gainesville, FL 32610 Edited by Simon A. Levin, Princeton University, Princeton, NJ, and approved September 16, 2016 (received for review June 19, 2016) Large-scale corporate projects, particularly those in extractive indus- What these and many other projects lacked was a planning tries or hydropower development, have a history from early in the process in which the maximization of profit subject to the constraint twentieth century of creating negative environmental, social, and of minimal harm to the surrounding ecosystem was operational. health impacts on communities proximal to their operations. In many Here, the term “ecosystem” includes physical, biological, and social instances, especially for hydropower projects, the forced resettlement surroundings. For the early twentieth century projects, there was of entire communities was a feature in which local cultures and core essentially no analysis of where externalized costs were going and human rights were severely impacted. These projects triggered an who was bearing them. Modern notions of a priori impact assess- activist opposition that progressively expanded and became influential ment and alignment of corporate and societal interests (6) were not at both the host community level and with multilateral financial factored into project development and essentially did not exist.
    [Show full text]
  • The Mineral Industry of Indonesia in 2009
    2009 Minerals Yearbook INDONESIA U.S. Department of the Interior September 2011 U.S. Geological Survey THE MINERAL INDUSTRY OF INDONESIA By Chin S. Kuo Indonesia is rich in mineral resources, including coal, copper, in December 2008. Ministries with vested interests in the gold, natural gas, nickel, and tin. The country also has less regulations, such as the Ministries of Finance and Forestry, had significant quantities of bauxite, petroleum, and silver. The not responded to the drafts proposed by the Ministry of Energy country’s industrial production came from the cement, metal and Mineral Resources. The mining sector was unlikely to have mining, and oil and gas industries. Indonesia was among the new projects in the near future as the Government stopped five leading producers of copper and nickel in the world and its issuing new mining permits until the regulations were made tin output was ranked second after China. It was also ranked final. Mining investment fell below $1 billion in 2009 because among the world’s top 10 countries in the production of gold of the uncertainty in the new mining and coal law. BHP Billiton and natural gas. Indonesia was one of the leading exporters of Ltd. of Australia scrapped a study to develop an integrated liquefied natural gas (LNG) (after Qatar) but was a net importer nickel project on Sulawesi Island and the development of a coal of oil. mine in Central Kalimantan Province. Tsingshan Mineral Co. of China scrapped a $500 million nickel project in North Maluku Minerals in the National Economy Province. The new mining law also requires foreign investors to divest shares either to the Government, a state-owned enterprise, Indonesia’s real gross domestic product (GDP) growth was or a local private entity after the fifth year of commercial 4.5% in 2009.
    [Show full text]
  • Golden Rules Making the Case for Responsible Mining
    GOLDEN RULES Making the case for responsible mining A REPORT BY EARTHWORKS AND OXFAM AMERICA Contents Introduction: The Golden Rules 2 Grasberg Mine, Indonesia 5 Yanacocha Mine, Peru, and Cortez Mine, Nevada 7 BHP Billiton Iron Ore Mines, Australia 9 Hemlo Camp Mines, Canada 10 Mongbwalu Mine, the Democratic Republic of Congo 13 Rosia Montana Mine, Romania 15 Marcopper Mine, the Philippines, and Minahasa Raya and Batu Hijau Mines, Indonesia 17 Porgera Gold Mine, Papua New Guinea 18 Junín Mine, Ecuador 21 Akyem Mine, Ghana 22 Pebble Mine, Alaska 23 Zortman-Landusky Mine, Montana 25 Bogoso/Prestea Mine, Ghana 26 Jerritt Canyon Mine, Nevada 27 Summitville Mine, Colorado 29 Following the rules: An agenda for action 30 Notes 31 Cover: Sadiola Gold Mine, Mali | Brett Eloff/Oxfam America Copyright © EARTHWORKS, Oxfam America, 2007. Reproduction is permitted for educational or noncommercial purposes, provided credit is given to EARTHWORKS and Oxfam America. Around the world, large-scale metals mining takes an enormous toll on the health of the environment and communities. Gold mining, in particular, is one of the dirtiest industries in the world. Massive open-pit mines, some measuring as much as two miles (3.2 kilometers) across, generate staggering quantities of waste—an average of 76 tons for every ounce of gold.1 In the US, metals mining is the leading contributor of toxic emissions to the environment.2 And in countries such as Ghana, Romania, and the Philippines, mining has also been associated with human rights violations, the displacement of people from their homes, and the disruption of traditional livelihoods.
    [Show full text]
  • BUILDING on STRENGTH Annual Report on Sustainability
    BUILDING ON STRENGTH Annual Report on Sustainability 2019 Sustainability Report | 1 Cover Photo: Remote underground equipment operators at the Grasberg Block Cave, Indonesia. About Freeport-McMoRan Freeport-McMoRan Inc. (Freeport-McMoRan, FCX or the company) is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX is one of the world’s largest publicly traded copper producers. Our portfolio of assets includes the Grasberg minerals district in Indonesia (PT Freeport Indonesia or PT-FI), one of the world’s largest copper and gold deposits; and significant mining operations in North America and South America (Freeport Minerals Corporation or FMC), including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru. RECENT AWARDS & RECOGNITION Freeport-McMoRan was named to Forbes Magazine’s JUST 100 as one of America’s most JUST Companies for the 4th consecutive year (ranked 43rd nationally and 1st in Basic Resources). Freeport-McMoRan ranked 6th among 200 of the largest publicly traded companies in the world assessed by the Corporate Human Rights Benchmark (ranked 1st in North America and 3rd among 56 global extractive companies evaluated). Forbes Magazine ranked Freeport-McMoRan on its 2019 Best Employers List (2nd best employer in Arizona and 143rd nationally). Newsweek ranked Freeport-McMoRan as one of America’s 300 Most Responsible Companies (ranked 138th). 100 BEST Corporate Responsibility Magazine listed Freeport-McMoRan as one of the CORPORATE 100 Best Corporate Citizens for the 8th year for outstanding environmental, CITIZENS social and governance (ESG) transparency and performance.
    [Show full text]
  • Human Rights and the Mining Sector in Indonesia: a Baseline Study
    Mining, Minerals and Sustainable Development October 2001 No. 182 Human Rights and the Mining Sector in Indonesia: A Baseline Study Dr Chris Ballard The Australian National University Canberra, Australia This report was commissioned by the MMSD project of IIED. It remains the sole Copyright © 2002 IIED and WBCSD. All rights reserved responsibility of the author(s) and does not necessarily reflect the views of the Mining, Minerals and MMSD project, Assurance Group or Sponsors Group, or those of IIED or WBCSD. Sustainable Development is a project of the International Institute for Environment and Development (IIED). The project was made possible by the support of the World Business Council for Sustainable Development (WBCSD). IIED is a company limited by guarantee and incorporated in England. Reg. No. 2188452. VAT Reg. No. GB 440 4948 50. Registered Charity No. 800066 Contents Notes To This Report 3 1 Introduction 4 1.1 Terms of Reference 4 1.2 Research Aims and Methods 4 1.3 Report Outline 6 1.4 Acknowledgments 6 2 Human Rights and the Mining Sector in Indonesia 7 – Contextual Issues 7 2.1 Human Rights and the Mining Industry 7 2.2 Human Rights in Indonesia 9 2.3 The Mining Industry in Indonesia 12 3 Human Rights and the Mining Sector in Indonesia 17 – Case Studies 17 3.1 Introduction 17 3.2 Case Study 1 – Ombilin (West Sumatra) 18 3.3 Case Study 2 – PT Inco at Soroako (South Sulawesi) 20 3.4 Case Study 3 – Freeport at Grasberg (Irian Jaya) 22 3.5 Case Study 4 – Rio Tinto at Kelian (East Kalimantan) 32 3.6 Case Study 5 – Newmont at Batu Hijau (Sumbawa, Nusa Tenggara Barat) 36 4 Human Rights and the Mining Sector in Indonesia 39 – Industry Performance 39 4.1 Industry Performance on Human Rights in Indonesia 39 4.2 Gap Analysis 42 4.3 Beyond Compliance: Improving Industry Performance on Human Rights in Indonesia 43 Recommendations 45 5.
    [Show full text]
  • Indonesia's Savviest Claim Gold As Their Next Big Investment
    REVIEW By Alberto Migliucci CEO & Founder of PETRA COMMODITIES Indonesia’s savviest claim gold as their next big investment he yellow metal has clearly turned legendary hedge fund manager Stanley gold producer Newmont. The Batu Hijau the corner, becoming flat-out Druckenmiller of Duquesne Capital just mine is located in the southwest region of the bullish following the extensive made a huge bet on gold, going $300 million island of Sumbawa, West Nusa Tenggara and painful correction from long on the yellow stuff. He also took big Province, Indonesia. TAugust 2011 to year-end 2015. Year-to- new positions in Freeport-McMoRan, the “The transaction will directly provide date, the US dollar gold price has increased U.S. miner that operates Grasberg, the a strategic added value to MedcoEnergi circa 26 percent to US$1334 / oz. Petra world’s largest gold mine on the western in view of the world-scale operation of Commodities anticipated back in December half of Papua. Currently, Indonesia produces PTNNT. The acquisition will strengthen last year Forbes Indonesia “GOLDEN around four percent of global gold production MedcoEnergi’s position as an energy and OPPORTUNITY” by Alberto Migliucci (Indonesia is a top 10 gold producer), half natural resources top-tier enterprise in (http://forbesindonesia.com/berita-916- of which originates from the giant Grasberg Indonesia and emphasizes our commitment golden-opportunity.html) that gold would mine which is believed to contain the world’s to contribute to the national development,” turn making the decision of several savvy largest gold reserves (67.4 million ounces). Medco’s President Director and founder investors taking big positions in the precious Indonesia has seen a re-emergence in Hilmi Panigoro said in a statement.
    [Show full text]
  • TROUBLED WATERS How Mine Waste Dumping Is Poisoning Our Oceans, Rivers, and Lakes
    TROUBLED WATERS HOW MINE WASTE DUMPING IS POISONING OUR OCEANS, RIVERS, AND LAKES Earthworks and MiningWatch Canada, February 2012 TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................................1 TABLE 1. WATER BODIES IMPERILED BY CURRENT OR PROPOSED TAILINGS DUMPING ................................. 2 TABLE 2. MINING CORPORATIONS THAT DUMP TAILINGS INTO NATURAL WATER BODIES .......................... 4 TAILINGS DUMPING 101....................................................................................................5 OCEAN DUMPING ....................................................................................................................................... 7 RIVER DUMPING........................................................................................................................................... 8 TABLE 3. TAILINGS AND WASTE ROCK DUMPED BY EXISTING MINES EVERY YEAR ......................................... 8 LAKE DUMPING ......................................................................................................................................... 10 CAN WASTES DUMPED IN BODIES OF WATER BE CLEANED UP? ................................................................ 10 CASE STUDIES: BODIES OF WATER MOST THREATENED BY DUMPING .................................11 LOWER SLATE LAKE, FRYING PAN LAKE ALASKA, USA .................................................................................. 12 NORWEGIAN FJORDS ...............................................................................................................................
    [Show full text]
  • Grasberg Gold and Copper Mine Indonesia
    Grasberg gold and copper mine Indonesia Sectors: Mining On record This profile is no longer actively maintained, with the information now possibly out of date Send feedback on this profile By: BankTrack Created before Nov 2016 Last update: Nov 1 2015 Contact: Leen Schmücker FairFin, Belgium Project website Sectors Mining Location About Grasberg gold and copper mine The Grasberg mine, located in the indonesian province of Papua, on the island New Guinea, just north of Australia, is being run by the mining company Freeport McMoran. The Grasberg mine is the biggest goldmine and the third biggest coppermine in the world. New Guinea is known for its biologically diverse ecosystems and endemic species but it also has great cultural value. In the western part of the island, in the Indonesian province Papua, 1.5 million of the 2.5 million people are indigenous peoples speaking more than 250 different languages. But the area is not only known for its cultural and natural wonders. It is also one of the last places on earth where companies still use a very controversial mining technique; the 'riverine tailings disposal'. This technique, which involves dumping toxic rubble in riversystems, is used by Freeport McMoran at the Grasberg mine. Latest developments May 22 2008 What must happen Friends of the earth Indonesia (Wahli) recommends in its latest report 'The environmental impacts of Freeport-Rio Tinto's Copper and Gold Mining Operation in Papua' the following to the Indonesian government: "Immediately enforce national environmental law. This should be done by halting Freeport-Rio Tinto operations until breaches are remedied, and prosecuting legal breaches which continue today despite warnings in the early 2000s.
    [Show full text]
  • PTNNT Provides Update on Batu Hijau Operations
    Press Release PTNNT Provides Update on Batu Hijau Operations Jakarta, June 3, 2014 – Following its May announcement, PT Newmont Nusa Tenggara (PTNNT) today said that its concentrate storage facilities at Batu Hijau are now full, forcing the operation to halt processing activities and cease production of copper concentrate. PTNNT continues seeking clarity from the Government regarding Batu Hijau’s ability to export concentrates. The company has delayed to put employees on stand-by status at home on paid leave at reduced compensation in anticipation of a ministerial meeting this week that is intended to clarify the conditions under which copper concentrate exports will be permitted. The company is communicating with employees about the situation and most are prepared to be on standby at reduced pay, should that become necessary. PTNNT continues working diligently and in good faith with the government to resolve the export issues and to keep the Batu Hijau mine operating for the benefit of employees, shareholders, the Government, and the people of Indonesia. About PTNNT’s Contract of Work and Copper Concentrate Production The Batu Hijau copper and gold mine was developed under an investment agreement called the Contract of Work (CoW). These Contracts of Work were designed to provide assurance and stability to encourage significant, long-term investments, which is why they were endorsed by Parliament and approved by the President of Indonesia. The CoW details PTNNT’s obligations and rights – including the obligation to produce and the right to export copper concentrate – while also explicitly establishing all the taxes and duties PTNNT is required to pay.
    [Show full text]