Education/Employment

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 Freeport-McMoRan Copper & Gold

II. SOCIAL CHANGE AND DEVELOPMENT
TRAINING, EDUCATION AND PAPUAN DEVELOPMENT

Training, development and continuing education are critical components to ensuring long-term operating efficiency in any business. These matters become even more important when operating in a developing region without a long history of advanced educational programs. Job training programs in Papua must offer more than technical skills development. PT Freeport Indonesia offers more classroom and on-the-job training hours than many universities. Training programs range from basic literacy and mathematics to "pre-apprenticeship" programs for individuals with no prior career training, advanced technical apprenticeships, career and leadership development, and business management programs that provide world-class skills to our workers.

In 1996, PT Freeport Indonesia committed to significantly improve an already-aggressive program of training and education. The company pledged to double the number of indigenous Papuan employees throughout the workforce by 2001 and to double that number again by 2006. The company also pledged to at least double the total number of Papuan management and professional employees. Both goals were surpassed ahead of target dates. At the end of 2003, PT Freeport Indonesia and its direct contractors had approximately 2,500 Papuan employees, compared to 600 in 1996, including 210 Papuan management staff employees, compared to less than 50 in 1996. Another 1,000 Papuans were employed by privatized companies serving PT Freeport Indonesia.

With a view toward long-term development of additional underground mining projects in the PT Freeport Indonesia project area, employee development managers, working with members of the local community, have formed the Nemangkawi Mining Institute. The Institute's goal is to provide pre-apprentice, apprenticeship and advanced career development opportunities for some 300 Papuans per year, with enrollment projected at 1,000 at any given time. Graduates of the Institute will compete on equal terms for positions within the Freeport organization and related enterprises each year.

 

An aggressive training and employee development program seeks to provide skills and create job opportunities for hundreds of local Papuans each year.
In addition to these training and education programs, educational assistance for non-PT Freeport Indonesia employees has been provided to thousands of Papuan students through LPMAK and the Freeport Partnership Fund for Community Development. However, recent assessments have indicated that the desired results for the traditional inhabitants of our operations area were not being achieved through this program. Significant deficits in local elementary, junior high and high school educational programs meant that the scholarship funds were benefiting Papuans from outside the area of our operations more than local Papuans.

Due to this, LPMAK has embarked on a three-year transformation of its educational program to emphasize working with the local Mimika government and provincial government to upgrade the local educational system from elementary through high school. The program will involve teacher recruitment, curriculum development, upgrading school buildings and facilities and creating a monitoring system to help ensure that education in Mimika is effective and efficient. Scholarships for Papuans, especially those at the university level, will continue, but will not be the major focus of the LPMAK program.
 


Figure 3. PT Freeport Indonesia has surpassed its goals for Papuan employees and Papuan staff since 1996.

The Arrow Points UPWARD
for Papuan Employee DEVELOPMENT
"Nemangkawi" means "white arrow" in Amungkal, the traditional language of the Amungme community. It is the name the Amungme gave to the glacier and snow-covered mountain that reaches the highest point between the Andes and the Himalaya. The snow-covered mountain sits just to the east of the Grasberg mining complex. On a clear day, Nemangkawi can be seen from the Arafura Sea some 130 kilometers south. Silas Natkime, a leader of the Amungme community and a supervisor with PT Freeport Indonesia's employee development unit, feels that the name "Nemangkawi" appropriately captures the aspirations of most Papuan employees of PT Freeport Indonesia. As a result, he suggested it as the name for the new forward-looking employee development institution that PT Freeport Indonesia will charter to foster the development of and opportunities for the Papuan people.

"The arrow points upward; so should the future for the workers from this area," explains Silas, whose job is to see to it that the company lives up to its commitments to Papuan employee development. The Nemangkawi Mining Institute is a key to make it happen. The Institute's goal is to develop 300 trained Papuan apprentices with world-class skills who can enter into the workforce - working for PT Freeport Indonesia, one of its contractors or other businesses in Papua - each year. The Institute is part of a sweeping employee development program that seeks to provide ongoing opportunities for all PT Freeport Indonesia employees across the operations, as well as for the new recruits.

Quick with a broad smile and a firm handshake, Silas is a natural communicator (he speaks his native Amungme, Indonesian and English) and his enthusiasm for his job is infectious. He has worked for the mining company for 19 years; moving up the ladder from an entry-level job as a Welding Trainee to his current position as General Forman of Papuan Development in PT Freeport Indonesia's Quality Management Services Department (QMS). He is also a leader of a Papuan Employees Organization known as Tongoi of Papua, a group that provides a communications link between the company management and its rank and file Papuan workers.
 
Employee development mentors Silas Natkime (left) and Peter Mosel (in red jacket) oversee programs ranging from basic literacy to advanced technical skills with a goal of guiding hundreds of local Papuans into careers.

Having grown up the son of an important tribal leader in the traditional Amungme community of Wa, Silas has watched PT Freeport Indonesia grow from a small operation in the 1970s to the world-class mining complex it is today. At 40 years old, he explains that meaningful employment for members of his generation has been tough to come by for a number of reasons. "The local Papuan people did not have the means to get a good education for many years. Back in the 1970s the closest schools were several days walk away," Silas explains. PT Freeport Indonesia has sent thousands of local youth to school on scholarships, has built local schools and has worked with the local government to set up programs to improve local education. But, according to Peter Mosel, Silas' mentor and the Manager of QMS for PT Freeport Indonesia, the vast majority of applicants from the local area, even in recent years, were not properly prepared for most good jobs.

To remedy the situation, Mosel, Silas and the senior management of PT Freeport Indonesia have adopted a multi-faceted approach to company training efforts. "We're looking to prepare as many as 300 indigenous Papuans to enter the workforce each year," says Mosel, an Australian native who has spent most of his professional career at various mining projects in Indonesia. "We assess 40-50 applicants each week from the seven local traditional communities. A small percentage is ready to enter into our Apprenticeship programs. However, we've found that most of those tested have been falling short, so we've geared our efforts toward getting them prepared," explains Mosel. "We created a Pre-Apprentice program that begins with the very basics - learning to read and to do basic mathematics. From there, they move up to learning a craft that is most suited to their strengths," Mosel adds, with Silas Natkime nodding in agreement. "Silas' role includes counseling these young people - finding out what their interests are and guiding them into a career path." Participants understand that jobs are not guaranteed to those who complete the program. The intent is to develop skills in the Papuan people so that they are able to compete for jobs and perform in the workplace on the same basis as those from Indonesia's more developed regions who have had better educational opportunities.

Trifena Tinal

Apprentice trainees in the Deep Ore Zone underground mine learn skills to work in one of the world's largest mining complexes.

Trifena Tinal (upper photo) manages the Pre-Apprentice and Apprentice programs.

The Pre-Apprentice and Apprentice programs are managed by Trifena Tinal, a young engineer from the Damal/Amungme community who grew up in Freeport's company town Tembagapura. Trifena obtained her Civil Engineering degree at the University of New Orleans and has returned home to devote her energy to preparing her fellow Papuans for the workforce.

Trifena says that these programs are reversing the way managers think about hiring employees from the local area. "When people don't hire Papuans, they say the Papuans don't have the skills. Now we're providing that skill, so their employment opportunities are greater. What we're doing is solving the root causes of unemployment," she explains.

Optimistic about what the future holds for her generation and beyond, Trifena says that it is essentially up to the individual to succeed, now that there are so many opportunities being offered. "Freeport has made the commitments and it's up to us to take advantage of them. There are so many opportunities now, it's scary," she says, laughing.

Mosel says that Silas and Trifena's enthusiasm are indicative of the program's success. "Trifena came in after her last group of pre-apprentices achieved the highest scores in their round of advanced tests and shouted 'It's working!..It's working!' Seeing that kind of excitement is the payoff for all the hard work," he says.


BUSINESS DEVELOPMENT


An essential part of working toward a sustainable economy in the area of our operations is helping Papuans learn how to run their own businesses and providing startup assistance to get Papuan entrepreneurs started. In the lowlands, for example, we are working with the Kamoro, the traditional inhabitants, to develop fisheries with export potential. Such efforts in the past had been hampered by the lack of an ice factory and a quality processing facility. With PT Freeport Indonesia's help, PT Kapiri, a Kamoro-owned company, has started an ice factory and processing facility and is purchasing vessels to collect fish from Kamoro fishermen.

Similarly, an integrated animal husbandry and poultry production center is being developed in Timika in the lowlands. This enterprise, which employs 400 Papuans, produces pigs, chickens, ducks and chicken and duck eggs. A Papuan-owned meat market has also been established in Timika with help from the business assistance program and is now operating profitably. In the village of Banti in the highlands, the supermarket is owned by a highland Amungme company and its staff is completely Papuan.
 
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