PRO CONTRA Contract of freeport for gold mining in papua

Contract of Freeport for gold mining in Papua

Dian Anisa

XII IPS 1

• Freeport is a large international mining company, headquartered in Phoenix, Arizona. Freeport operates globally, mining largely copper, and gold. Freeport operates the Grasberg Mine in Indonesia (the largest gold mine and the third largest copper mine in the world) and has mining operations in the Congo, Arizona, New Mexico, Colorado, Peru, and Chile. Freeport also has rod and refining operations and copper production facilities in Texas, Connecticut, Illinois, Arizona, and New Jersey.

Grasberg Gold Mine

This mine, which is in the Indonesian province of Papua, produced 2,025,000 ounces of gold. The mine is majority owned by Freeport-McMoRan Copper & Gold Inc (90,64%). Besides gold, it also produces silver and copper. Mining activities of PT Freeport McMoran Indonesia (Freeport) in Papua, which began in 1967 and now has been going on for 45 years.

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Papua local government income depend on the mining sector. Since the 1975-2011 GDP by 60% over Papua from the payment of taxes, royalties and profit sharing of non-renewable natural resources, including gold, silver,copper from Freeport.

PRO

•In 2003, PT Freeport Indonesia founded Nemangkawi Mining Institute (NMI) for the opportunity to improve competence, particularly for people from Papua that provide opportunities for young men and women citizens of Indonesia to obtain employment as part of the PT Freeport Indonesia.

PRO

Activities in Nemangkawi

Mining Institute

•PT Freeport Indonesia employs approximately 23,000 employees in Papua, which covers 98% of an Indonesian citizen whose 28% are employees from Papua.

PRO

Freeport business and economic activities in Papua, has gained a huge financial advantage for foreign companies, but do not provide optimal benefit to the country, Papua, and local people around the mining area. From year to year Freeport continue grabbing huge benefits from the mining of gold, silver, and copper in the world. Freeport officials (foreigners) always get the best facilities, highest wages than the annual income of Timika people, Papua.

CONTRA

Poverty occurred in the Mimika, whose income is only about $ 132 / year, in 2005. Welfare of the Papua people do not automatically raise up with Freeport's presence in their region. In the Freeport mining area, most of the natives are under the poverty line and live on the remaining gold from Freeport waste

CONTRA

Unfortunately, in terms of its shareholders, Freeport Mc Moran has 90.64 percent and PT Freeport (indonesian government) has only 9.36 percent. Looking this reality,it illustrates the foreign domination of the natural resources assets in a country that has been independent for 67 years

CONTRA

Some environmental damage is revealed by the media, Freeport has destroyed 23,000 ha of forest in the area of mining waste deposition. Changing landscape due to erosion and sedimentation. The overflow of the river due to siltation caused by mining waste deposition.

CONTRA

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