Monday, February 23, 2015

1) Indonesia Seeks to Assure Freeport of Mining Contract

2) Yerisiam and Waoha Tribes Reject Land Concession to PT. Nabire Baru
3) Mimika Regency to Deliver Food Aid to Tsinga Village
 4) Hospitality Business Associations Launch 21 Port Numbay West Papua Recipes

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http://thejakartaglobe.beritasatu.com/business/indonesia-seeks-assure-freeport-mining-contract/

1) Indonesia Seeks to Assure Freeport of Mining Contract


By Investor Daily on 08:44 am Feb 23, 2015
Jakarta. The government is undertaking efforts to conclude the renegotiation of Freeport Indonesia’s contract of works before July this year, as it seeks to provide the mining company with certainty before it invests billions of dollars in underground mining projects, a minister said last week.
“Whoever wishes to invest $17.3 billion needs assurances. That’s why we hope that we can announce the decision before July 2015,” Energy and Mineral Resources Minister Sudirman Said said in Jakarta on Friday.
Freeport Indonesia, the local unit of US mining giant Freeport-McMoRan, has been in talks with the government to amend its contract of work and to extend its mining operation beyond 2021.
Renegotiations include the company’s value-added obligation; contractual period; size of operation; local-content obligation; government revenue, and divestment.
The toughest point so far had been the value-added obligation, which translated into a demand that the miner should build a smelter in Indonesia.
The government has demanded that all miners, including Freeport Indonesia, must build smelters to add value to the nation’s natural resources.
In the aftermath of Indonesia’s half-hearted implementation of a mineral ore export ban in January last year, all miners, including Freeport Indonesia, had to renew their permits to export copper concentrate every six months.
Freeport has secured an extension of its export permit for six months in January, after it showed its commitment to building a smelter in-country by signing a land lease in East Java.
That means that the miner will be free to export copper concentrate from its Grasberg mine in Papua for the next six months.
“After the six points of renegotiation are completed … then we can sign the new contract,” Sudirman said.
Freeport, which runs the world’s fifth-biggest copper mine in Indonesia, already agreed to a $2.3-billion copper smelter in East Java as it prepares to spend $15 billion for the expansion of its mining operations this year.
The Arizona-based miner wants its Indonesian unit to change to with underground mining from previously open-pit mining to access more copper and gold from the Grasberg mountain in Papua.
Freeport Indonesia’s previous chief, Rozik B. Soetjipto, told GlobeAsia in 2012 that the company was in a race ahead of the 2017 depletion of surface resources at its Papua mining site.
However, the minister said, extending the contract means the government must change its regulation. Regulation No. 77 of 2014 about the implementation of mineral and coal states that holders of contracts of works can only submit a request to the ministry at the soonest two years before  such contract expires. Freeport’s contract will only expire in 2021.
The miner signed its first contract for Grasberg in 1967.
But Said Didu, a member of the national smelter development team at the Energy and Mineral Resources Ministry, said that certainty over Freeport’s contract extension was necessary because 70 percent of the miner’s earmarked investment in underground mining was ready to be disbursed as part of the mine’s first development.
“When the underground access is done, but the contract cannot be extended, it will be a difficult situation [for the company],” said Didu, a former secretary at the State-Owned Enterprises Ministry.
“It can take up to 10 years [to build the necessary infrastructure] to access the ore underground,” he said.
Investor Daily
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2) Yerisiam and Waoha Tribes Reject Land Concession to PT. Nabire Baru

Jayapura, Jubi – Yerisiam and Waoha tribes expressed opposition to the issuance of the Land Rights certificate for business to PT. Nabire Baru, a company accused of destroying tribal forests.
“This land certificate will be issued by the National Land Agency (BPN) of Papua Province and we reject it, ” secretary of Yerisiam tribe, Robertino Hanebora, told Jubi in Nabire ( 23/02/2015).
According to Hanebora, PT. Nabire Baru did not deserve to get a concession because there has been a conflict between the owners of property rights and the company.
“The government should not only provide the concession but it must also look at the issue. Unfortunately the government never understands. The government doues not realize that they indirectly kill us, ” Robertino said.
The fundamental reason why the people rejected it because the company has not addressed on tribal protection as the main thing in a Memorandum of Understand.
“But until now it has not been discussed. We does not understand what the purpose of this investment is (palm oil company). If the tribal basic rights have not been talking, it means that the government contributed to the error and want to kill us, “he said.
Meanwhile, Emmanuel Money, Waoha chief in Nabire expressed the same thing. “We, tribal people of Yerisiam and Waoha firmly reject this plan by National Land Agency to several palm oil companies in the land of Papua, one of which is PT. Nabire Baru, “he said. (Arnold Belau/ Tina)


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3) Mimika Regency to Deliver Food Aid to Tsinga Village

Timika, Jubi/Antara – The Mimika regency government is sending food aid to help victims of landslides in six villages around Tsinga, Tembagapura district.
Head of Tembagapura district Slamet Sutedjo said food aid will be delivered to Tsinga by helicopter from Kilangin Moses airport on Tuesday morning (24/2).
“The distribution of food has been delayed three times, because of bad weather. All food aid is now in Timika airport,” he said in Timika on Monday (02/23/2015),
He said the Social Service Agency of Mimika provided five cartons of basic foodstuffs, 30 sacks of rice, instant noodles and milk. In addition, 100 uniforms of elementary students, pajamas for housewives, plastic tents and mats.
Mimika regent Eltinus Omaleng is also sending 100 sacks of rice, instant noodles, cooking oil, sugar, and coffee.
Head of the Regional Disaster Management Agency in Mimika Yulianus Sasarari said Tsinga aid distribution is coordinated by Social Service Agency.
“We will also send staff to Tsinga to see the condition closer. We hope that PT Freeport will facilitate helicopter to distribute this aid, “he said.
Landslides in Tsinga village occurred on Saturday (14/2) at around 14:30 p.m due to heavy rainfall in the region. Although there were no fatalities, it resulted material losses in six villages in the area of Tsinga.
Based on report from district head Slamet Sutedjo, landslides resulted two elementary teachers’ houses of SDN Tsinga in Beanegogom was almost collapsed. While the teacher’s kitchen was swept away.
The other damage, two hanging bridges in Kampung Nosolandop and Doliningokgin were buried with landslide material and could not be used.
The disaster also resulted the main roads between Beanegogom to Doliningokgin and Tsinga to Hoeya are disconnected and agricultural land belong to 64 families in Tsinga were also swept away. (*)

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4) Hospitality Business Associations Launch 21 Port Numbay West Papua Recipes

Jayapura, Jubi – To celebrate its 46 anniversary, the Indonesian Hotel and Restaurant Association ( PHRI) launched a cookbook containing 21 recipes of Port Numbay dishes in Jayapura, Papua a few days ago.
“We, PHRI of Papua together with Indonesian Chef Association (ICA) launched a Port Numbay cookbook. There are 21 recipes presented by the best chefs,” Sahrir said on Saturday night (21/02/2015).
He said the book was aimed at supporting government programs, especially the government of Jayapura city in Papua.
Moreover, this is one way to search for patents in each of the hotel menu and restaurant which will be themed “Papua Corner”.
“Also it is to support government programs in order to consume locally-based menu, such as taro, cassava, sweet potatoes, vegetable wax and sago, ” he added.
Damino, Coordinator of Eastern Chef said such long desire finally can be realized.
“These 21 recipes are later patented in every hotel, at least 3 recipe so that the people of Papua and the visitors could feel enjoy traditional menu of Jayapura city,” he said. For example, Port Numbay Salad, Tobati Pudding, Papeda and so on.
Jayapura Mayor Benhur Tommy Mano Jayapura in his speech, urged the PHRI to continue in creating innovations and creations that are very useful for people around Papua especially in Jayapura.
“Hopefully, among them can be made as a souvenir of Jayapura,” Mano added.
He also hoped PHRI to improve its service to the customers and always maintain public relationship.
Meanwhile, Assistant II of Papua Secretariat on Economy, Elia I Loupatty added, with the 46th anniversary of PHRI, hotels and restorant in Papua particularly in Jayapura would be more advanced and solid and continuously to improve its services to all its customers and can support government programs. (Sindung Sukoco/ Tina)



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5New Guinea rainforest being leveled for palm oil, revealing gaps in zero deforestation pacts

Rhett A. Butler, mongabay.com
February 23, 2015


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