Tuesday, February 27, 2007

Freeport's payments to Indonesia and Papua

Freeport Indonesia, the Indonesian subsidiary of US-headquartered Freeport-McMoRan Copper and Gold Inc, operates the world-class gold and copper mine in Indonesia's easternmost province of Papua and may be Indonesia's largest taxpayer. "From January to December 2006, Freeport Indonesia paid its financial obligations to the government of Indonesia in the sum of US$ 1.6 billion," a company statement quoted by AFP stated.

It said US$ 1.29 billion of the total comprised corporate, employee income and other taxes. Dividends accounted for US$ 159 million and royalties for US$ 146 million. Freeport Indonesia has paid US$ 5.1 billion to the Indonesian government since 1992, according to the statement. Taxes accounted for US$ 4.1 billion of the figure, with the remainder comprised of royalties and dividends.

The company said Freeport Indonesia had also invested US$ 5 billion dollars to develop company infrastructure and US$ 500 million in social facilities. It had also generated direct employment for 9,000 people in 2006, some 27 percent of whom were indigenous Papuans, the statement said.

It added the company had provided 10,700 jobs indirectly last year, for example for contract workers or employees at partner firms and had purchased domestic goods and services worth US$ 4.3 billion.

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