PT Freeport-Indonesia's Sustainability Development Framework (SDF): Kuala Kencana as a Model...

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PT Freeport-Indonesia's Sustainability Development Framework (SDF): Kuala Kencana as a Model of Sustainable Community

in West Papua, Indonesia

Jenkins MacedoMaster of Science in Environmental Science and Policy

Master of Arts in International Development and Social Change

Sustainable Communities

16TH April, 2013

BRIEF OVERVIEW OF PT FREEPORT-INDONESIA

Freeport-McMoran Copper & Gold Company is engaged in exploration and development, mining and milling of ore containing copper, gold and silver in the Grasberg minerals district in Indonesia. The Grasberg minerals district contains one of the world's largest single recoverable copper and gold reserves, and is at the heart of a highly prospective minerals district, where ongoing exploration is providing opportunities to continue to add to our long-lived reserves.

PT Freeport Indonesia operates under a Contract of Work (COW) with the Government of Indonesia, which allows the company to conduct exploration, mining and production activities in the 27,400-acre Block A area, which is where all of PT Freeport Indonesia's proven and probable mineral reserves and current mining operations are located. Under the COW, PT Freeport Indonesia also conducts exploration activities in the approximate 413,000-acre Block B area.

Overview of Freeport-McMoran

West Papua (Irian Jaya)

BLOCKS A & B

Production sequencing Reserves as of December 31, 2006

REGULATORY AGENCY

Structure of the International Council on Mining & Metals

Sustainable Development Framework

1. Implement and maintain ethical business practices and sound systems of corporate governance.

2. Integrate sustainable development considerations within the corporate decision-making process.

3. Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities.

4. Implement risk management strategies based on valid data and sound science.

5. Seek continual improvement of our health and safety performance.

6. Seek continual improvement of our environmental performance.

7. Contribute to conservation of biodiversity and integrated approaches to land use planning.

8. Facilitate and encourage responsible product design, use, re-use, recycling and disposal of our products.

9. Contribute to the social, economic and institutional development of the communities in which we operate.

10. Implement effective and transparent engagement, communication and independently verified reporting arrangements with our stakeholders.

Strategic Plan

KUALA KENCANA:A MODEL SUSTAINABLE COMMUNITY OF

PT FREEPORT-INDONESIA

Small Business Development Preserving Cultures

Community Housing Development

Biodiversity Enhancement

Environmental Reclamation

Biodiesel Program

Environmental Compliance & Management

Energy and Greenhouse Gas Emissions

Education

Public Health Centers Indigenous Peoples

Land Use and Customary RightsInvestment in Local Economies

Challenges

Political > West Papua (Irian Jaya) mineral rich part of Indonesia wants their independence from Indonesia.

All photos and data extracted from reports of PT Freeport Indonesia and Freeport-McMoran Copper & Gold Company

with few pictures taken myself.

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