Freeport McMoRan takes exception.

• Author: Collier, III, William L.
• Position: From Readers - Letter to the Editor

Please allow me to correct false statements about our company contained in your story titled "The Hidden Shame of the Global Industrial Economy," appearing in the January/February 2004 issue of World Watch magazine.

Our mining operation in Papua, Indonesia has never used cyanide in its processes and cyanide is not contained in our mine tailings.

Land for our operations area in Papua was not "seized from the Amungme and Kamoro people." Under the Indonesian Constitution, all unimproved land is legally state-owned land and all minerals belong to the state. Our "January Agreement" of 1974 with the Amungme was the first recognition in Indonesia of hak ulayat, or the right of traditional people to undeveloped land they have used for hunting and gathering. Subsequent to that agreement, thanks to our pioneering effort, the government formally recognized the right to compensation for hak ulayat land rights. Compensation in the form of rekognisi, or recognition, is paid to communities where a release of hak ulayat tights is needed, because hak ulayat is a communal property right. PT Freeport Indonesia, our Indonesian mining affiliate, has paid rekognisi in several instances over the years through programs mutually agreed upon with the affected local Papuans and the government. Over the years, as our operations have grown and the duration of the operations extended, we have even informally renegotiated recognisi for the highland communities. These were major programs involving the provision of significant community facilities and other benefits.

In addition, since 1996 we have provided well over $100 million in funding for social programs to a special fired managed by the local people that carries out a full range of beneficial educational, healthcare, housing and community development programs. We have also reached important agreements with the Amungme and Kamoro peoples, original inhabitants of our area of operations. One concluded in 2001 established a Trust Fund for their communities enabling them to purchase shares in...