Freeport-McMoRan
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- James R. Moffett, Chairman of the Board
- Richard C. Adkerson, President and CEO
The U.S. mining company Freeport Sulphur, headquartered in New Orleans in 1967. Following the overthrow of Sukarno by Suharto, the first foreign company to receive approval from the Indonesian government Later, the Freeport McMoRan Copper & Gold - subsidiary PT Freeport Indonesia with Grasberg in West Papua operator of the largest gold mine and the most cost effective promotional copper mine in the world. Freeport was from the beginning politically and economically significant for the Suharto regime. In the U.S., the company acted as a lobby group for the government in Jakarta. Freeport has been the largest taxpayer in Indonesia, by far the largest investor, one of the largest employers and operates one of the largest social commitment - Suharto described it as essential for the Indonesian economy. On the other hand, the company is also the most controversial foreign investor with respect to its mining methods.
It developed mutual supportive relationships between Freeport and the Indonesian government, the military and the national political elite. In return, Freeport was politically and militarily protected by the regime. The financial support brought Freeport in danger of violating the U.S. Foreign Corrupt Practices Act. Due to the key economic role in Jakarta and West Papua, the question of the independence of West Papua by Indonesia is inextricably linked to the future of Freeport.
Due to its influence and its corporate policy Freeport is under observation of many human rights and environmental groups. Because of the serious and irreversible pollution of breaking international laws and lack of transparency of the Norwegian Government Pension Fund Freeport shares for holding ethically unacceptable.
Shares
At the Indonesian subsidiary PT Freeport Indonesia, the largest private taxpayer in the country, Freeport McMoRan holds a 90.64 - percent, the rest keeps the government in Jakarta. Furthermore, the Indonesian exploration company PT Irja Eastern Minerals and Atlantic Copper SA, the Spanish is one of her daughters.
The built under Suharto pressure of Freeport on Java copper smelter PT Smelting in Gresik, completed in 1999, cost $ 700 million. Freeport has a share of 25% and is committed to deliver 40 % of the copper ore.
1995 agreed with the Freeport mining company Rio Tinto for an initial payment of $ 1.7 billion, a 40 % share of the Grasberg - promotion, which is above 118,000 tonnes per day ( 2006, about half the delivery ). A 40 % share gets Rio Tinto also to all future discoveries in the concession area in West Papua. This Treaty is the world's largest business in the mining industry.
The Freeport share is since 1988 listed on the New York Stock Exchange (symbol FCX ), in Germany since 1998 as FPMB, WKN 896 476, ISIN US35671D8570 and is listed on the stock index S & P 500.
History
The wealth of the company is based mainly on the signing of a license agreement with the then ruler Suharto in 1967., The company acquired the right to 30 km ² for mineral resources to search for and received a 30 - year exclusive contract from the official opening of the mine in 1981. Despite protests from the population and the destruction of a pipeline, the Indonesian government expanded after the discovery of the Grasberg mine the concession area in 1991 to 25,000 km ². The contract was extended for a further period of 50 years. As in 1967 are neither environmental regulations or compensation of indigenous people in the contract included. The company generates about 50 % of the gross domestic product in West Papua.
On 31 August 2002, the members of the Papua People's Group Anthonius Wamang armed stormed a meeting of teachers who work for Freeport McMoRan -, killing two Americans, an Indonesian and injured a further 11 people. The event gave the shareholders of the companies listed on the American Stock Exchange company cause to request more information about the connections with the Indonesian military. It came on assumptions that members of the special unit would thus give more expression Kopassus their demands for more money. Other speculations say that there had been an arranged stop the independence movement OPM.
After April 2003 Freeport McMoRan - paid "officially" no individuals from the military or police in order to avoid possible charges against the American " U.S. Foreign Corrupt Practices Act ."
Criticism
The company became a sensation in 2003 in connection with human rights violations around the Grasberg mine, the largest gold mine in the world in West Papua. By years paid several million dollars of protection money to individual officers of the military and police, have the responsibility to the expulsion and killing of thousands of member of Papua, they took the worsening situation of the indigenous people in the marked by troubled province of Papua in purchasing.
Equally known Freeport is known for its environmental destruction. In the mining contracts for Grasberg no environmental requirements are included and relying on good relations with the Indonesian government, the company ignored the Indonesian environmental protection legislation. 238,000 tons of toxic tailings are transported daily on the rivers and Aghawagon Otomona in the Ajkwa River, and dumped in lakes, next to the Lorentz National Park. As early as 1990 in the Arafura Sea significantly increased copper concentration was measured. According to Freeport, the water of the rivers is drinkable and it will all regulations complied with by the company. Journalists and independent observers will not be allowed to mine. Environmental impact studies are not published, independent measurements are not allowed.
Significant Supervisory Board members
- Henry Kissinger, U.S. Secretary of State 1973-1977, before that from 1969 U.S. National Security Adviser, Political Adviser to the Indonesian President Abdurrahman Wahid 2000-2001. Supervisory Board Member 1995-2001
- John Hay Whitney, U.S. ambassador to Great Britain and main financial backer of Dwight D. Eisenhower
- Robert A. Lovett, U.S. Defense 1951-1953, one of the architects of the Cold War
- Admiral Arleigh Burke, 1955-1961 Chief of Staff of the U.S. Navy
- Augustus " Gus" Long, for many years Chairman of Texaco
- Benno C. Schmidt, Sr., coined the term " venture capital "
- Godfrey Stillman Rockefeller
- Jean Mauze, husband of Abby Rockefeller
- J. Stapleton Roy, Ambassador to Indonesia 1996-1999 and director of Kissinger Associates
Competitor
- Newmont Mining Corporation, operator of the Yanacocha gold mine, promotes 233,000 kg annually
- Barrick Gold Corporation, promoted 2004 154.200 kg of gold. Operator of the Pascua - Lama mine in South America
- Corporacion Nacional del Cobre de Chile, operator of the world's biggest copper mine Chuquicamata
In November 2006, the Company announced its intent to purchase the competing Phelps Dodge Corporation (copper and molybdenum) for $ 26 billion.