Indonesia may seek to renegotiate Freeport-McMoRan operationsLast Update: 4:35 AM ET May 15, 2006JAKARTA (MarketWatch) -- Indonesia's government may soon seek to renegotiate its existing contract with Freeport-McMoRan Copper & Gold Inc. (FCX) over its massive Grasberg mine in Papua province, the Jakarta Post reported Monday.
The government may call for a contract renegotiation "in the next two months" following the completion of an official review of the company's operations and its contribution to communities around the mine site, the report said, citing Minister of Energy and Mineral Resources Purnomo Yusgiantoro.
Freeport-McMoRan officials have pointed out that the existing contract between the firm and the Indonesian government bars unilateral moves to renegotiate the terms of the company's Grasberg operations.
Muhammad Lufti, chairman of Indonesia's official Investment Coordinating Board, said in March that the government is committed to honoring the contracts and protecting the assets of all foreign investors, including mining companies in remote regions.
Freeport-McMoRan's Indonesia operations have been under intense scrutiny in recent months over its payments to military forces in Papua and allegations of environmental pollution.
Anyone wishing to get a glimpse at the machinations of multinationals and the subordination of governments glaobally to the will of such private multinational forces should review the history and dealings of Freeport-McMoRan (formerly Freeport Sulphur), including such global events as Castro's takeover of Cuba, "the year of living dangerously" in Indonesia and the Suharto takeover from Sukarno, Viet Nam, and even the politics of Texas.