[news] US mining firm pays Papuan army

[Pat S]

US mining firm pays Papuan army
http://news.bbc.co.uk/2/hi/asia-pacific/2850701.stm

The American mining giant Freeport McMoran paid the Indonesian military more 
than $5m last year for protection in Papua, a troubled Indonesian province.
Confirmation of the long-suspected arrangement was contained within a 
confidential document leaked to the media.

Freeport paid the army to protect their employees at Papua's Grasberg mine, 
one of the world's largest gold and copper mines.

The Indonesian military have been accused of widespread corruption and human 
rights abuses in Papua, where they are trying to contend with a sporadic 
separatist revolt.


The document was written in response to queries from Freeport's 
shareholders, who were said to be uncomfortable with the security 
arrangements that the subsidiary Freeport Indonesia had in Papua.

The document details the payment of $5.6m to the Indonesian military in 
2002, and $4.7m in 2001.

The money was paid for the employment of about 2,300 personnel, and covered 
costs for housing, fuel, travel and vehicle repairs.

A local Indonesian soldier admitted to the BBC's Indonesian service that 
"those who were on duty at Freeport got money for food and also got some 
pocket money".

The BBC's Jakarta correspondent Rachel Harvey says the admission, from the 
biggest company in Indonesia to what is basically a protection racket, is a 
significant move.

Human rights campaigners go even further, saying payments to the military 
provide an incentive for the maintenance of a high level of insecurity in 
Papua, which is also known as Irian Jaya.

Seven members of Kopassus, Indonesia's special forces, are on trial for 
murdering pro-independence leader Theus Eluay in November 2001.

The military has also been accused of taking part in the ambush and murder 
of two American teachers and a Freeport employee last year.

However the army has denied any role in the murders.

Carmel Budiardjo, a human rights activist, told BBC News Online that the 
relationship between Freeport and the military was "a very serious blemish 
on the whole situation in Papua".

Our Jakarta correspondent says that although Freeport is keen for the issue 
to be forgotten, now that the information is in the public domain it will 
raise questions that are unlikely to go away.

"Everybody officially knows what unofficially they thought they knew before 
- that money was exchanging hands," she said.

"But... is this an ethical way to conduct business?"

Freeport has been involved in mining in Papua since 1967, and the firm was 
one of the first big companies to invest in the province in the Suharto-era.




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