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Foreign investment

Mining news in brief

Down to Earth No. 76-77 May 2008

 

New regulation means cheap forests for mining

A new government regulation on non-tax income from forest areas has caused outrage among NGOs by setting low prices for the use of forests by mining companies and other non-forestry sector users.

The regulation - PP 2/2008 - sets the rate for mining in protection forests from Rp 2,250,000 - Rp3 million (around US$240-320) per hectare per year. In production forests, the rate is Rp 1.8 million - 2.4 million (around US$192 - 255) per year.

Oil palm plantations? Carbon credits? Papua's forests targeted

Down to Earth No.75, November 2007


Large areas of Papua's rich and diverse forests are being targeted by Indonesian and overseas investors for conversion into oil palm plantations. At the same time, discussions are in progress to reserve large areas of Papua's forest to generate carbon credits for trade on international markets.

Tangguh - adapting to the West Papuan context?

Down to Earth No. 73, May 2007


It has been two years since Down to Earth's last detailed report on BP's huge Tangguh gas project in Bintuni Bay, West Papua. Surprisingly little has changed.


From BP's point of view much has changed at Tangguh - the project is now well into its construction phase (70% complete as of March 2007) and is due to go 'onstream' in 2008. However, the same issues, the same concerns, the same doubts keep surfacing. How can this mega-project possibly fit into the realities of West Papuan life?

Strikes and book launch keep Freeport-Rio Tinto in the news

Down to Earth No. 73, May 2007

The giant copper and gold mine operated in West Papua by US-based mining company Freeport McMoran with substantial investment from the British multinational Rio Tinto has been under scrutiny once again.


The Freeport-Rio Tinto mine has been the subject of protests at local and national level in recent months. At the local level, thousands of Papuan workers at the mine went on strike for four days. Facing hundreds of military and police, they successfully demonstrated against discriminatory employment practices.

Freeport investor quits

Down to Earth No. 71, November 2006

Freeport McMoRan Copper and Gold, operator of the Freeport-Rio Tinto gold and copper mine in West Papua, has been dropped from the US$240 billion Norwegian government pension fund for ethical reasons.

Rio Tinto in new Sulawesi nickel project

Down to Earth No. 70, August 2006

A dramatic rise in the price of nickel is prompting the development of a major new nickel mine in Sulawesi. What will be the impacts for local people and their environment?

The Indonesian government and Anglo-Australian mining multinational Rio Tinto are negotiating the terms of a contract to develop the La Sampala nickel deposit on the borders of Southeast and Central Sulawesi. Spokesman for Rio Tinto in Indonesia, Anang R Noor, said the company plans to invest US$1 billion in the project.

ADB to fund BP's Tangguh gas project

Down to Earth No 68  February 2006

Despite protests from NGOs, the Asian Development Bank has approved a loan for BP's giant Tangguh gas project in West Papua.

In December 2005, the Asian Development Bank (ADB) decided to put US$350 million towards the $5.5 billion gas extraction and liquefied gas processing plant, now being developed by Anglo-US multinational BP, in Bintuni Bay, in the western part of West Papua.

This project has attracted critical attention because of the actual and potential impacts on local people and the e