John Aglionby in Jakarta
Friday December 30, 2005
The Guardian
Indonesia's military admitted yesterday that officers received payments from a local subsidiary of the American mining giant Freeport-McMoRan to guard its huge Grasberg copper and gold mine in Papua, the western, Indonesian, half of New Guinea island.
The admission comes after a report in the New York Times claimed that Freeport Indonesia paid military and police officers, and several army units £11.7m from 1998 to 2004. Some officers allegedly received tens of thousands of pounds. If they kept any of the money themselves, it would be a criminal offence.
The scandal might have significant implications for the Anglo-Australian company Rio Tinto, which had a 12% stake in Freeport-McMoRan from 1995 until last year. It still has a 40% share of all deposits discovered in the mine after 1994.
It could also raise concerns for BP, which is developing a multibillion pound gas field in Papua but has yet to engage the military in its site security.
http://www.guardian.co.uk/indonesia/Story/0,2763,1675232,00.html