[Kabar-Irian] Irian News - 3/3/06 (Part 2 of 2)

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- President: seek solution to Freeport case
- SBY promises probe into Freeport fracas
- Protesters demand an end to plunder of Papua
- Demonstrators seal PT Freeport's Jakarta office
- Students take Freeport protests nationwide
- Freeport's imbroglio
- Papua row could scare off investors
- Papuans set for showdown with US gold miner
- Grasberg tension more noise for metals
- National police not to pull out personnel from Papua
- Wood Group awarded BP's Tangguh gas processing facilities contract
*****************************

Antara
Mar 03 00:30
President: seek solution to Freeport case

Yangoon (Antara News) - President Susilo Bambang Yudhoyono has called on
related parties, including the acting governor of Papua, to find out the
cause of the Freeport conflict and seek solution to the problem.

The energy and mineral resources minister and other technical ministers as
well as the acting governor of Papua should strive to find out the cause
of the conflict soon, along with the police, the President told reporters
here on Thursday.

Speaking to the press a moment before leaving Myanmar to end a two-day
working visit to that country, he emphasized the need to examine every
problem that provokes demonstrations, actions of local people and
incidents.

It is not right to hastily make a conclusion of an incident and change
policy without scrutinizing the problem first, he asserted, adding that
protests, demonstrations and small incidents will continue to occur in a
country entering the period of transition to democracy like Indonesia.

If the Freeport conflict is provoked by a problem in the community
development program, it is necessary to examine whether the community
development funds have been fairly distributed, he said.

If illegal mining activities are the source of the conflict, solution to
the problem must be based on the law and prevailing rule, he stressed, and
pointed out that illegal mining activities have occurred not only in
Freeport, but also in Kalimantan and other areas.

The important thing is seeking solution to the Freeport case, the
President stressed. He called for the prevention of violence and
vandalism, which can spoil the improving investment climate.

During the visit, the President was accompanied by a number of government
top officials, including Coordinating Minister of the Economy Boediono,
Foreign Minister Hassan Wirajuda and Minister/State Secretary Yusril Ihza
Mahendra.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Jakarta Post.com
Headline News
March 03, 2006
SBY promises probe into Freeport fracas
Tony Hotland, The Jakarta Post, Yangon

President Susilo Bambang Yudhoyono promised Thursday the government would
get to the bottom of the dispute between PT Freeport Indonesia and the
local community in Papua, but cautioned violence should not be part of the
protests demanding the closure of the copper-and-gold miner.

Yudhoyono, who said he would meet with related ministers to determine
their actions on the dispute, said protests must not be marred by
destructive behavior because it would discourage investors, particularly
from overseas.

"We need to look deeper into what the problem really is because there are
always ways to solve it," he said.

"If it's about Freeport's funds for community development, then discuss
it. Find out if it's about the money not being distributed at all or
perhaps incorrect use of the money. We can always evaluate the mistakes."

Yudhoyono, speaking in Yangon on the final leg of his regional tour of
three countries, said all sides must refer to the law before taking action
because it was the approach of a country with democratic objectives.

"If it's about conflicts with local illegal miners, resolve it according
to the law. We have regulations on illegal mining, which seems to be
taking place in other areas as well outside Papua," he said.

The dispute began on Feb. 21, when security guards at the local unit of
U.S. company Freeport-McMoran clashed with local miners sifting through
the mine's tailings in Timika. It led to a four-day blockade of a road
leading to the mine and the suspension of operations. Protests against the
company have continued in Papua and Jakarta.

Yudhoyono also said the government would investigate if protesters -- who
vandalized the Jakarta high-rise where Freeport Indonesia's main office is
located and have held almost daily demonstrations this week -- were truly
concerned about the problems at the mine.

He did not discount the possibility that some elements "just want to fuel
the protests, but have no interest at all in Papua. The bottom line is
that we have to refer everything with the laws. Are there any laws being
violated? Is there something wrong in the relationship between Freeport
and the locals?"

He said violence or vandalism would only result in negative effects to the
country as a whole.

"What will we do then with the image of a good investment climate we're
trying to build and promote to foreign investors? It'll just disappear.
They'll see what is being done to businesses that invested here, and it
will scare them away," he said.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Sydney Morning Herald
Protesters demand an end to plunder of Papua
By Mark Forbes Herald Correspondent in Jakarta
March 2, 2006

A Stone-Age bow and arrow shoot-out between tribesmen and guards at the
giant Freeport gold and copper mine in Papua has snowballed into a
stand-off symbolising Papuans' push for independence and their belief that
their province is being plundered.

Freeport, the world's biggest goldmine, was forced to halt production in
the Indonesian province last week after being blockaded by the tribesmen,
who pan the tailings at the mine for scraps of gold. Although the US-owned
mining company claimed last weekend to have ended the conflict with a
traditional stone-burning ceremony and offers of assistance, Papuan
students have continued to demonstrate daily in Jakarta.

And each day this week, hundreds of police have used water cannon to
prevent rock-throwing students storming Freeport's headquarters. The
protesters' demands have escalated: they now want the mine closed and
Indonesian soldiers withdrawn from the province.

Hundreds more have staged rallies in Papua's capital of Jayapura, while a
tent-city opposing the mine has been erected in Timika, the nearest town
to Freeport's mine, Indonesian police said.

Following a 24-hour sit-in at Papua's provincial parliament, some
legislators yesterday endorsed the protesters' demands and promised to
pursue them with Jakarta.

One legislator, Hana Hikoyabi, said the contract between Freeport and the
Government was secretive.

"The protest is an accumulation of years of disappointment," Mr Hikoyabi
said. "We hope Freeport is willing to open up. Freeport has to realise the
gold, copper and anything it mined in Timika belongs not to them, but to
Papuans."

One of the Jakarta protest leaders, Marthen Goo, said the struggle was
just beginning. "We have not received anything good from Freeport. We are
going to protest until Freeport is shut."

A spokesman for Freeport, Siddharta Moersjid, said the company was very
concerned about the continuing protest, but confused about the motivation.

"This has nothing to do with what happened at the mine last week," he said.

Security forces had tried to clear illegal miners away from the banks of a
river into which Freeport dumps its tailings. Police fired rubber bullets
while the miners reportedly used bows and arrows.

Freeport has agreed local authorities could give permission to pan the
tailings. Most of the hundreds of illegal panners have migrated to the
area recently, attracted by rising gold prices.

Freeport is experiencing growing pressure over its relationship with the
Indonesian military in the province. An investigation has been called into
revelations that Freeport made direct payments to soldiers who guarded the
mine.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Antara
Mar 02 00:03
Demonstrators seal PT Freeport's Jakarta office

Jakarta (Antara News) - Hundreds of Papuans including students grouped in
the United Struggle Front of the People of West Papua (Papera/PB) ended
their three-day demonstrations outside the office of PT Freeport Indonesia
at Plaza 89 in Kuningan, South Jakarta, on Wednesday by symbolically
sealing it.

At around 04.00 pm the Papera-PB demonstrators concluded their action that
had lasted for the past three days by symbolically sealing the office of
PT Freeport-Rio Tinto.

They tied a white banner reading "On behalf of the people of West Papua we
officially seal Freeport-Rio Tinto" on a palm tree standing in the front
yard of the office.

The coordinator of the action, Marthen Goo, said the sealing action was a
form of statement that PT Freeport Indonesia had been closed by the people
of Papua and could not operate.

"Our struggle is not over. We will continue to watch PT Freeport. If it
reopens or operates again all the people of Papua will come to demand for
stoppage of their operations," he said.

The demonstrators held prayers before leaving the PT Freeport office for
the office of the Forum of the Living Environment (Walhi) in Mampang,
South Jakarta.

The demonstrations at PT Freeport office in Kuningan followed a
demonstration in Mimika, Papua, that occurred following a clash between
the company’s security personnel and local people.

The police clashed with the demonstrators at the office of PT Freeport in
a demonstration on Tuesday. The Papera-PB condemned the repressive action
of the security personnel in the incident and had asked the natinal police
chief to act against the perpetrators.

Eight police officers were wounded in the incident and three demonstrators
were taken to the hospital. The police held six demonstrators considered
provocateurs of the violence following the incident.

"They are threatened with Article 351 on torture or Article 170 on
provocation," Jakarta police spokesman Senior Commissioner Ketut Untung
Yoga Anan said.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Jakarta Post.com
National News
March 02, 2006
Students take Freeport protests nationwide
Andi Hajramurni and Suherdjoko, The Jakarta Post, Makassar/Semarang/Jakarta

Anger at PT Freeport Indonesia continued Wednesday, with protesters
demanding the closure of the company's mine in Papua over allegations
Freeport was stealing the wealth of Papuans and degrading the environment.

Papuan students demonstrated in three cities -- Makassar in South
Sulawesi, Semarang in Central Java and Jakarta.

In Makassar, a protest involving about 30 students turned violent when
they vandalized the West Irian Liberation Monument.

Police officers stood by as the students tore the lettering from the
monument, and replaced it with the words, "This is the Papuan People's
Tyranny Monument."

Officers had to step in to prevent a fight between the monument's
caretaker, Takdir H Lawata, and the students.

"Please, go ahead with your rally, but don't destroy the monument. This is
a historical monument, celebrating the liberation of the Papuan people
from the grip of the PKI," Takdir said, referring to the now-defunct
Indonesian Communist Party.

"I care for this monument night and day, and you just destroy it," he
shouted at the students.

The protesters also criticized Vice President Jusuf Kalla for his
statement that the government would not shut down Freeport's operation.

They accused the Vice President of betraying the people of Papua for the
benefit of big business.

"Jusuf Kalla comes from eastern Indonesia, so he should be on the side of
eastern people, including Papuans. In reality, however, he has betrayed
us," JP Tabuni, the coordinator of the action, said.

In Semarang, Papuan students unfurled banners which read, "Close Freeport
now", "Freeport has to be responsible for the destruction of the ecosystem
in Timika/Papua" and "Improve the Welfare of the Papuan People now."

The peaceful rally ended at 11:30 a.m. after rally coordinator, Fransiscus
Kekey, read out the students' demands.

Kekey accused Freeport of failing to improve the welfare of Papuans during
its 39-year operation in the province.

Papua's natural resources have been exploited for the benefit of the
company, while the people of Papua have been abandoned to poverty, he
said.

"Freeport just steals the wealth of the Papuan people, without doing
anything to improve their welfare," he said.

He claimed Freeport had posted profits of US$494 million in 2003, up from
$398.5 million in 2002, but only between 1.3 and 1.6 percent of that money
had gone to the Indonesian government.

In Jakarta, hundreds of Papuan students and Papuans living in Java and
Bali held a peaceful rally.

Police installed barricades in front of Plaza 89 in South Jakarta, where
Freeport's offices are located, preventing demonstrators from approaching
the building.

Several people addressed the crowd outside the building, denouncing
Freeport and demanding the closure of its mine.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Jakarta Post.com
Editorial
March 03, 2006
Freeport's imbroglio

The stated motives behind the series of recent street demonstrations by
Papuans in Jayapura, Jakarta, Semarang and Makassar, demanding the closure
of Freeport's giant mine in Papua, are said to be because the mine does
not benefit the local people. But such complaints are highly questionable,
even mind-boggling.

The presumed trigger for the demonstrations was a minor clash Feb. 21 when
Freeport security guards ordered at least 100 illegal miners to stop
panning for gold just outside the Grasberg copper and gold mine. Only one
security guard was reported hurt, but the local gold panners and their
supporters succeeded in halting the mine's operations for three days.

The street protests in the four aforementioned cities against PT Freeport
Indonesia, the unit of U.S.-based Freeport-McMoRan Copper & Gold Inc.,
seemed to only have a tenuous connection to the local miners' grievances.
The city protesters stated that they wanted the closure of the Freeport
mine, which last year produced 793,000 metric tons of copper and 3.55
million ounces of gold (and paid over US$130 million in taxes to the
government).

Such street demonstrations have become commonplace here since 1998-1999,
when Soeharto's exit unleashed a collection of activists --
non-governmental organizations, local leaders -- some touting genuine
community interests, several with selfish interests and ulterior motives
-- most of whom were kept silent during Soeharto's authoritarian rule.

The resulting breakdown of law and order in several provinces, combined
with the virtual meltdown of the national economy, had made many big
resource-based ventures, located mostly in remote areas, highly vulnerable
to arbitrary claims or other forms of opposition.

We have also observed protests from environmental and human rights groups,
which accused large companies like Freeport of damaging the environment,
violating basic human rights or being involved in the intricate web of
Soeharto's crony capitalism.

Freeport, which began production in Papua in 1972, could have been an
integral cog of Soeharto's politico-business machinery and could have been
inevitably drawn into collusion and corruption, which characterized the
Soeharto era. But none of the allegations charged against the New
York-listed company has ever been proven in court.

Now that such street protests emerged again without any major accident or
incident, we cannot help but to be reminded of a similar "incident" that
hit PT Kaltim Prima Coal, in East Kalimantan, which was then controlled by
BP (now called "Beyond Petroleum") and Anglo-Australian company Rio Tinto,
in 2003.

Kaltim Prima, which operates one of Indonesia's largest coal mines, was
then hit by a barrage of protest demonstrations that halted its
operations. As it happened, BP and Rio Tinto were then facing deadline
pressures to divest their shares in the coal mine to Indonesian interests.
So damaging had been the impact of the demonstration and blockade of its
mining operations that both foreign companies hastily sold their
controlling interests, reportedly at a fire-sale prices, to PT Bumi
Resources-- a unit of the Bakrie Group, a diversified conglomerate
connected to the Bakrie family (of which Aburizal Bakrie, the welfare
minister is an integral part) -- simply to get out of its mining
operations in the province as soon as possible.

It may well be purely coincidence that Freeport McMoRan, at the request of
the Indonesian government, is also offering 10 percent of its shares to
private Indonesian interests under the condition that the transaction must
be concluded at a fair market price. Analysts say the market value of the
10-percent stake, based on its latest quotations in the New York Stock
Exchange, is now about US$1.2 billion.

The 10-percent stake had actually been sold in 1991 to PT Bakrie Brothers,
which later resold it to PT Nusamba, controlled by Soeharto's golf buddy
Mohammad Bob Hasan, as part of the realization of Freeport McMoRan's
divestment of 20 percent of its interests in FI -- the other 10 percent
was sold to the Indonesian government. However, because Nusamba defaulted
on its debt after the 1998 economic crisis, Freeport McMoRan reacquired
the 10 percent stake.

Even though, Freeport McMoRan is not facing any deadline pressures for the
divestment, we cannot help but suspect that some provocateur might have
been playing a big part in the current protest demonstrations in a
subterfuge to drive down Freeport McMoRan's share prices.

Whatever the real motive of the protest demonstrations, the protesters'
demand for Freeport's closure is irrational, because the company has not
been found guilty of any wrongdoing. The government therefore should
protect the company for the sake of legal certainty and see to it that the
protest demonstrations in Papua and other provinces remain under control.

But it is also well-advised for Freeport McMoRan to realize that for such
a giant mine operating in such a remote area, where the government has yet
to provide basic services, it is no longer enough to simply abide by the
law.

Freeport McMoRan should also increase its social responsibility above the
mandatory floor for good corporate governance standards. Operating
prosperously in the midst of an impoverished community often fosters
resentment and envy that may eventually explode into resistance as people,
in the current democratic era, will no longer keep silent about what they
perceive to be an unjust distribution of wealth.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Age (Melbourne)
Papua row could scare off investors
By Mark Forbes, Jakarta
March 4, 2006

Indonesian President Susilo Bambang Yudhoyono has intervened in the
growing controversy surrounding Papua's giant Freeport mine, warning that
violent protests could scare off investors, and questioning demonstrators'
motives.

Returning from a visit to Burma, Dr Yudhoyono said he would gather senior
ministers to seek a resolution to the crisis surrounding the world's
largest gold mine. It was sparked 10 days ago when tribesmen armed with
bows and arrows confronted guards who were preventing them searching for
gold among Freeport's residue.

Although the tribesmen lifted a blockade of the mine last weekend,
protesters in Jakarta and Papua have continued to call for Freeport's
closure, linking the dispute to the province's struggle for greater
autonomy and benefits from its natural resources.

Together with a deadlock between Exxon Mobile and state-owned oil company
Pertamina over the right to manage a $2 billion offshore oil project, Dr
Yudhoyono is concerned his quest for increased foreign investment could
suffer.

The causes of the Freeport conflict must be urgently identified and dealt
with, Dr Yudhoyono said. Money contributed by Freeport to the local
community must be distributed fairly.

He said some elements behind the protests might not be truly concerned
about problems at the mine. Yesterday's Jakarta Post suggested
"provocateurs" might be seeking to drive down Freeport's share price after
a government edict that the company sell 10 per cent of its shares
locally.

Violent protests could deter foreign investors, Dr Yudhoyono said.
"They'll see what is being done to businesses that invested here and it
will scare them away."

A solution must be found, he said. "If it's about Freeport's funds for
community development, then discuss it."

Dr Yudhoyono is facing criticism for failing to implement a deal for
greater autonomy for Papua, the scene of a violent, long-running
independence struggle.

Protesters have linked Freeport to claims Jakarta and multinational
corporations are environmentally and financially pillaging the
resource-rich province. Freeport is Indonesia's largest taxpayer,
contributing more than $150 million a year.

Dr Yudhoyono also issued a broadside to Pertamina's management, which is
in the midst of a six-month standoff with Exxon over the rights to develop
the rich Cepu oil field. He said the state-owned oil firm needs
restructuring and has "run slow, half-baked and ineffective".

During his visit to Burma — the target of international criticism for its
suppression of democracy — Dr Yudhoyono called on the regime to allow
access to regional monitors.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
IPS News
Papuans set for showdown with US gold miner
Friday, March 03, 2006
by Kafil Yamin

After two weeks of protests and a sustained blockade, the United States
miner, Freeport-McMoran, continues to hang on to the world's largest gold
and copper mine in eastern Papua province, on the strength of assurances
from the central government.

Residents of Kali Baru and Banti villages have been blockading the
company's mining site in Tembaga Pura and forced the company to halt
operations over the past week.

Freeport stands accused by the people, the provincial government of Papua
and non-government organisations (NGOs) of colluding with corrupt military
and other central officials, to fleece the mines and degrade the
environment around the mine located deep in the remote snow-capped central
highlands.

Papua's legislative house and the Papua People's Assembly have been firm
that Freeport must shut down. ''We have asked the central government in
Jakarta to close down Freeport,'' Papua house speaker Komarudin Watubun
told a crowd of 300 demonstrators staging a rally on Tuesday. ''We want a
total closure of the company.''

Joining the chorus is one of Indonesia's prominent political leaders,
Amien Rais, who said, last week, that Freeport should be closed down for
''three big crimes''.

''The first is ecological crime by destroying land and environment. The
Ajkwa river that was once clean and green has now become a heap of
tailing.'' The second, he said, was ''robbery by channeling concentrates
of gold and copper from Jayawijaya mountain top through a 100 km pipe to
the Arafura sea and taken overseas for decades, unreported.''

Rais said he had reliable data to show that only three percent of mined
concentrates of gold and copper were accounted for.

''The third is tax crime,'' he said, demanding that President Yudhoyono
review the Freeport contract. Freeport is already Indonesia's biggest
tax-payer.

On Wednesday, the protesters managed to meet James Moffet, commissioner of
Freeport. Negotiations have continued but tensions have been running so
high that clashes have broken out with Indonesian security forces who are
paid, illegally, by the company.

Meanwhile in Jakarta, NGO activists and the Papua students have been
marching to the Freeport office in South Jakarta demanding closure of the
company and clashing with police.

Last week, the protesters turned violent and rampaged through the building
destroying furniture and breaking window panes. The arson stopped only
after police fired warning shots.

Facing frequent protests, including attacks on its workers, Freeport has
sought Indonesian military protection by paying off high-ranking military
generals and police officers.

An investigation by the London-based NGO, 'Global Witness' has revealed
names of military and police officers who personally received money from
Freeport in what the company calls 'pay for protection'. Brig Gen Ramizan
Tarigan admitted he received 14,000 US dollars during 2002.

In April 2002, Freeport gave the then Papua military chief Maj Gen Mahidin
Simbolon 64,000 dollars in what the company dubbed as 'fund for 2002
military project'. In December of that year, Simbolon received another
67,000 dollars for 'humanitarian civic project', according to Global
Witness. Simbolon is now the inspector general of the Indonesian Army.

In 2003, as the U.S. government imposed stricter assessment on companies,
Freeport switched to paying police and military units instead of persons.
During that year, the company paid Indonesia's military police and
paramilitary 200,000 dollars.

Freeport has spent at least 20 million dollars from 1998- May 2004 on
military and police officers in Papua, according to the Global Witness
investigation. Several former managers interviewed by Global Witness said
at least 10 million dollars more were paid after 2004.

Freeport is also accused of obscuring its real revenue, prices of copper
and gold and tax fraud. The government is now setting up a team to assess
Freeport transactions.

Vice President Yusuf Kalla said there is an urgent need to review the
Freeport contract with the Indonesian government. ''If they (Freeport) are
proved to have scammed taxes, prices and other unfair dealing, we will
certainly impose a legal sanction,'' he told journalists in Jakarta, last
week.

The review team will comprise officials from the ministries of finance and
of energy and mining, with the assistance of several legislators.

But even as the team is in the making, the Indonesian military and police
has sent in more troops to the company's base in Papua to deal with the
people's blockage.

Last Thursday, Freeport denied it gave dollars to the Indonesian military
officials as suggested by Global Witness. But the company acknowledged
that it has provided the military guarding the mining site with logistic
assistance. ''We don't bribe. We do give assistance to the military, not
in cash, but in the form of field equipment such as handy talky, cars,
food,'' said AR Soehoed, a Freeport official.

Soehoed said the company needs to ensure security at its mining sites and
due to challenge in the field, the military needed good facilities. ''All
payments are transparent and reported to the New York Stock Exchange,'' he
said. ''And assisting security personnel on duty is just normal. If you
give some food to your starving guard, that is normal, right?''
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PNG Industry News
Grasberg tension more noise for metals
Friday, March 03, 2006

Increasing tensions are surrounding the world's largest copper-gold mine,
Freeport McMoran's Grasberg operation in Indonesia, with recent ongoing
dramas providing further positive sentiment for bulls of the red metal.

In the past week the New Orleans-based miner has dealt with only the third
disruption to production in the mine's history, as well as daily violent
protests in Jakarta involving hundreds of people requiring dispersion by
police through the use of tear gas and water canons.

The latest instalment in the saga is news that the Papuan provincial
parliament will hold a special session this month to discuss closure of
the mine.

According to the ABC the provincial government does not have the authority
to close the mine but it being pressured by tribal groups to present a
case for closure to the Indonesian government.

"Of course this is disturbing. The government's stance is clear that we
will honour all contracts signed by the government and its apparatus." The
head of the Indonesian government's Investment Board Muhammad Lutfi told
Indonesian paper Kompas.

Protests have reportedly been spreading throughout the country including
South Sulawesi, Central Java and also the Southern Java town of Yogyakarta
yesterday where students reportedly took to the streets urging the
government to close the mine.

Another protest is planned today in southern Jakarta.

The dispute began last week when hundreds of illegal miners were moved on
by the Indonesian military from panning for gold in the mines tailings.
Locals protested by blockading the main road leading to the site causing
the company to stop production for four days.

The Indonesian military reportedly has 600 troops now stationed at Grasberg.

Grasberg has reserves of around 40.5 billion pounds of copper (and 46.5Moz
of gold), and has produced 16.6 billion pounds of copper and 22.9Moz of
gold since discovery in 1988.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Antara
Mar 03 22:59
National police not to pull out personnel from Papua

Jakarta (Antara News) - National Police Chief Gen Sutanto said here Friday
the police would not pull out their personnel from Papua province as
demanded by a number of parties following recent incidents in Timika.

"We have no plan to pull out our forces from Papua neither are we going to
reinforce them," Sutanto said.

He said police forces in Papua were organic personnel under the Papua
police’s supervision.

He also said he would not send any more police troops to the province
because the situation there was conducive.

"If all organic personnel are pulled out, who is going to tackle crime
there," he asked.

Deputy head of the National Police Headquarters’ public relations Brig Gen
Anton Bachrul Alam, meanwhile, said at least 200 policemen in Papua had
been sent to secure PT Freeport Indonesia’s mining area in Tembagapura,
Timika.

Anton also said the dossiers of 10 people who attacked PT Freeport’s
office at Plasa 89 Kuningan, Jakarta, recently had been submitted to the
prosecutor’s office.

After attacking PT Freeport office on Thursday (Feb 23), 13 people went
directly to the Commission for Missing Persons and Victims of Violence
(Kontras)’ office on Jalan Borobudur, Central Jakarta, to seek legal
protection.

The NGO then took them to the police office in Central Jakarta.

Freeport reportedly halted its mining activities at Tembagapura, Timika
district, Papua, while Indonesian government officials were negotiating
with Papuan protesters who blockaded a road to the company to find a
peaceful solution.

The 400 Illegal miners had set up barricades and demanded permission to
sift through waste pumped from the company s Grasberg mine.

They attacked security personnel using arrows as they were asked to
disperse, Anton said recently.

The company’s operational activities have caused many controversies in
Indonesia because of problems ranging from their impact on the environment
to the legality of the fees for Indonesian security personnel for guarding
the mining site.

Operations at the Grasberg mine, believed to hold the world’s
third-largest copper reserves and one of the biggest gold deposits, were
suspended on Wednesday after illegal miners armed with bows and arrows
clashed with police, soldiers the day before.

Grasberg’s copper output rose to 793,000 tons last year from 515,400 in
2004. Gold production rose to 3.55 million ounces from 1.58 million the
previous year.

Activities at a huge mine in Indonesia’s remote Papua province owned by a
unit of the U.S. company Freeport-McMoRan Copper & Gold Inc. have been
resumed after protesters left the site.

Illegal miners often enter mining areas in Indonesia, a sprawling
archipelago that is the world’s fourth most populous country, rich in
mineral resources such as copper, gold and tin.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
AFX News Limited
Wood Group awarded BP's Tangguh gas processing facilities contract
03.02.2006, 10:44 AM

London (AFX) - Wood Group Indonesia PT, part of energy services provider
John Wood Group PLC, has been awarded a project and construction
management support services contract by BP for the Tangguh gas processing
facilities in Papua, in the East of Indonesia.

No financial details were released.

A statement from Wood Group said the multi-million dollar, two-year
contract, with a one-year extension, includes engineering, construction
management and programme management services plus pipeline supervision.

Tangguh gas field, has reserves certified at 14.4 trln cubic feet.
-- newsdesk at afxnews.com