Freeport Report

What is the meaning of a report from Freeport-Mc Moran Copper & Gold Inc about company’s expectation for copper and gold output in 2008 from its new areas of exploration in Grasberg mine. Increase 6% bla..bla.bla, decrease ?% so what? There is so little stories about Freeport contribution to the development of Papuan. The Board of Directors and the Commissioners of Freeport-Mc Moran might think that after they pay royalty, tax and dividends everything will be okay far all parties. They forget one important thing, it is not always about business and money!!!

A more humane approach should be taken, otherwise Freeport is just a giant destroyer that is not only stealing Papuan rich resources but also stab Papuan conscious heart of humanity. Modernization and exploration for the improvement of human living is acceptable, but we should not neglect different appreciation of nature. Land for most Papuan tribe is sacred and should be treated as best as we can. Copper and gold are precious materials in industrial world, so those materials can bring prosperity to the owner. However, human perception of prosperity is not the same. We don’t have to explore with the intention to suck all materials from mother earth until it dried up and only left the bitterness of dying environment. The mother earth will cry for our greedyness.

All I want to say that it is very important for Freeport owners and workers to see the nature from different angle. After that, they might see Papuan as part of the nature that being hurt badly. After that, we might have an opportunity to start dreaming about humane capitalist that not driven by the economic pressure but by concsiousness and human heart.

Primary Source of the writing: Reuters 

Freeport Indonesia sees ’08 copper output up, gold down

JAKARTA, Feb 12 (Reuters) – The Indonesian unit of Freeport-McMoran Copper & Gold Inc. (FCX.N: Quote, Profile, Research) said on Tuesday it expects copper output to rise 6 percent this year as it explores new areas in its Grasberg mine.

Copper output at the Gasberg mine in far-flung Papua province is likely to rise to 1.2 billion pounds (544,316 tonnes) in 2008 from 1.13 billion pounds last year, said Mindo Pangaribuan, spokesman for PT Freeport Indonesia.

The Grasberg mine, believed to be the world’s third-largest copper reserve, accounts for 40 percent of Freeport’s total copper reserves of 93 billion pounds, according to the company’s Web site.

Freeport is the world’s largest publicly traded copper miner.

Pangaribuan also said the company expects its gold output to fall 45 percent to 1.2 million ounces this year from nearly 2.2 million ounces in 2007 due to lower-grade ore at the Grasberg mine.

In January, Freeport said it cut its 2008 global copper sales forecast to 4.3 billion pounds from 4.4 billion pounds and gold sales to 1.3 million ounces from 1.4 million ounces.

Freeport’s Grasberg mine has been a frequent source of controversy over its environmental impact, the share of revenue going to Papuans and the legality of payments to Indonesian security forces who helped guard the site.

PT Freeport Indonesia paid a total of $1.8 billion in royalty, tax and dividends in 2007, up from $1.6 billion in 2006.

In April 2007, native Papuan workers at the mine went on a four-day strike, demanding better welfare.

The strike helped pushed the price of copper — used extensively in construction and electrical wiring — on the London Metal Exchange MCU3 to $8,100 a tonne, the highest since Sept. 7 2006.

On Monday, copper hit $7,880 a tonne, the highest since Oct. 29, before settling at $7,765 a tonne on the day. The metal gained 5 percent in 2007 and so far has gained 15 percent since the start of 2008. (Reporting by Mita Valina Liem; editing by Sugita Katyal)

One Response to Freeport Report

  1. […] TCC Blog wrote an interesting post today on Freeport ReportHere’s a quick excerptThe Board of Directors and the Commissioners of Freeport-Mc Moran might think that after they pay royalty, tax and dividends everything will be… […]

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