Tuesday, 21 July 2009

Freeport CEO says 6 charged in Indonesia killing

NEW YORK, July 21 (Reuters) - Six people have been charged with murder in the killing of an Australian worker near Freeport-McMoRan Copper & Gold Inc's (FCX.N) vast Grasberg gold mine in Indonesia, the company's chief executive said on Tuesday.
"One of them has admitted to being the sniper," CEO Richard Adkerson told Wall Street analysts during a conference call on the company's second-quarter results.

Before discussing the results, he gave an update on "the events in Indonesia," saying 15 people had been arrested by police in the province of Papua following a series of shootings near Grasberg, the world's largest gold mine. Six of them were charged with murder, he said, citing police and Freeport officials in Indonesia.

Adkerson assured investors that production at the pit had not been affected despite blockades of roads, isolated shootings and acts of vandalism.

"We have been assured by the highest levels of the Indonesian government that they are committed to providing security," Adkerson said.

Adkerson also said "two senior (Freeport) people" attending a breakfast meeting at a Jakarta hotel were injured in last week's suicide bombings that killed nine people at two hotels. He did not name the two or give other details. They are recovering.

Adkerson praised Indonesian President Susilo Bambang Yudhoyono, who was re-elected in a landslide election earlier this month. "He ran on a platform of anti-terrorism and is pro-business."

Gunmen have carried out a series of attacks on a road leading to the mine in the past 10 days, killing an Australian technical expert working for Freeport, a guard employed at the mine and a policeman, as well as wounding seven police officers.

The mine, about 3,400 km (2,100 miles) east of Indonesia's capital of Jakarta, has been a frequent source of friction over its environmental impact, the share of revenues going to Papuans and the legality of payments to Indonesian security forces who help guard the site.

Secessionists have waged a low-level insurgency for decades in Papua, but the Indonesian military and police keep a tight rein on the area and have far more firepower. They have been accused by rights groups of abuses. (Editing by Jeffrey Benkoe)
http://www.reuters.com/article/marketsNews/idUSN2136722920090721

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