Mining, oil & gas

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].

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.

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).

Down to Earth No 50 August 2001


Preparations for BP's giant Tangguh gas project are moving ahead at a time of heightened tension in West Papua as the Indonesian military toughens its stance against 'threats to security' in the disputed territory.

The killing of five mobile brigade (Brimob) police officers and a logging company employee on 13th June, has sparked a brutal response by the Indonesian security forces in Wasior subdistrict, to the east of BP's Tangguh project in Bintuni Bay.

Down to Earth No 50 August 2001

Violations of community rights are still continuing as companies and regional governments try to maximise income from the country's mineral resources. At the same time, mining companies are complaining about the "legal vacuum" hampering their operations in Indonesia.

Large-scale mining in Indonesia is in 'legal limbo', as the protesting companies see it, because their contracts, signed during the Suharto era, are being nibbled away by the demands of local governments newly empowered by regional autonomy.

Down to Earth No 49 May 2001


The shooting of demonstrators, killings in police detention and increased military presence are making the prospects for peace in West Papua even more remote.

Down to Earth No. 49, May 2001


In March the US-based oil company Exxon Mobil announced it was suspending operations at its Aceh oil and gas fields due to the deteriorating security situation. It is no coincidence that only days later, the Jakarta government announced it would step up military operations in the conflict-ridden territory.

Exxon Mobil announced the temporary shut-down of operations in Aceh on March 9th.