Mining, oil & gas

BP's coal interest: Kaltim Prima

Down to Earth No 52 February 2002

BP currently joint owns and manages Indonesia's biggest coal mine. It has 50% of the shares in PT Kaltim Prima Coal (KPC), a massive open cast mine near Sangatta, East Kutai district, East Kalimantan province. The Anglo-Australian mining giant, Rio Tinto, owns the other 50%. KPC is currently embroiled in a power struggle with the local authorities as, under the initial agreement, this foreign-owned company must sell off 51% of its shares to Indonesian parties [1].

Brimob shooting at Aurora mine

Down to Earth No 52, February 2002

A man was seriously wounded as violence against the local community continues at Aurora's gold mine in Central Kalimantan.

On January 19th a mobile brigade police officer from the Central Kalimantan police force shot a young man at Aurora's Krikil I mine site in North Barito district. The man, named Gunawan, was searching through waste rock at the minesite in Tanah Siang sub-district, when he and two others were discovered by four mobile brigade (Brimob) personnel.

Rio Tinto's Kelian mine blockaded

Down to Earth No 52, February 2002

East Kalimantan's Kelian gold mine, operated by Anglo-Australian mining multinational Rio Tinto, was forced to cut production in January when four former employees blockaded an access road to the site.

Exxon Mobil under fire

Down to Earth No 52, February 2002

Recent attacks against oil and gas company Exxon Mobil in the war-scarred territory of Aceh have brought security concerns to the fore again, as Megawati's government struggles to convince investors they should bring their money back to Indonesia.

Oil palm action

Down to Earth No 52, February 2002

Three of the biggest banks in the Netherlands - ABN AMRO, Rabobank and Fortis - have agreed to stop or substantially restrict financing for oil palm development in Indonesia on environmental and social grounds. This is the result of a joint campaign by the Indonesian oil palm advocacy network, Sawit Watch, Milieudefensie (Friends of the Earth NL) and Greenpeace Netherlands following the disastrous 1997/8 forest fires in which10 million hectares of forest land were burnt. Oil palm and pulp plant feeder companies were the main offenders.

In Brief... DTE 52 - February 2002

Down to Earth No 52, February 2002

West Papua will not receive Freeport's corporate tax

Last minute changes in the Special Autonomy Law have denied West Papua a share of Freeport's corporate taxes - the largest chunk of annual payments - according to The Far Eastern Economic Review. The Review says that BP will end up pumping more money into West Papua's coffers than Freeport, which has been paying Jakarta an average of $180 million a year in taxes and royalties.

Court orders Freeport to clean up its act

Down to Earth No 51 November 2001

WALHI, Indonesia's leading environmental organisation, has scored a landmark victory in its court case against copper and gold miners PT Freeport Indonesia, operators of the huge Grasberg mine in West Papua. Meanwhile, militarisation is being intensified at the mine, as the Indonesian security forces pledge to protect it from alleged threats from "separatist groups".

On August 28th the South Jakarta District Court declared Freeport guilty of violating Indonesian environmental law (No. 23, 1997).