Education/Employment

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 Freeport-McMoRan Copper & Gold
From Will to Skill:
Mining Institute Builds Human Resources Capacity in Mimika
Odalina Mitoro, a 24-year-old apprentice at Nemangkawi Mining Institute, smiles shyly as she recounts her background. Born and raised in Timika in the Kamoro tribe, Oda finished high school and two years of college
in Jayapura before leaving school due to family problems. Now the 24-year-old apprentice has new dreams. "I would like to learn as much as I can and then help other Kamoro people," she says.

As an apprentice in Administration, Oda is learning English, computer, math and business skills. Oda is one of 21 women apprentices. "At first, my family complained that there was no place for women in mining," she explained. But after Oda met Nemangkawi's rigorous entrance requirements, she gained their full support.

PT Freeport Indonesia launched Nemangkawi Mining Institute last year with the mission to develop qualified tradesmen who can enter the industrial workforce. Since then, this program has made tremendous gains. "The
most exciting thing that has happened this year is the support the program has received from people in the field," said Peter Mosel, manager of PT Freeport Indonesia's Quality Management Services (QMS) Department.

Mosel has been instrumental in Nemangkawi's development. According to Mosel, "In addition to the 550
apprentices already engaged in on-the-job training in various departments, we have logged requests for more than 800 additional apprentices. This is a vote of confidence I would never have expected after only one year. The program is selling itself."
 
Odalina Mitoro,
Nemangkawi Mining
Institute Apprentice
In November 2004, a groundbreaking ceremony marked the expansion of the Nemangkawi campus in the Kuala Kencana Industrial Park. The new facility, to be constructed entirely by apprentices, will include classrooms, workshops and an open-air shelter where students can meet informally and share meals.

In 2005, through the strategic alliance between PT Freeport Indonesia, Caterpillar and Trakindo, Nemangkawi will be accredited as a Caterpillar Institute. "This is the first time a customer organization will undertake this rigorous accreditation process," said Steve Potter, Trakindo's General Manager at PT Freeport Indonesia. Through the Caterpillar Institute, students and instructors can become certified as heavy-duty machinery mechanics and operators.

"This is a really exciting prospect for us," said Mosel. While Nemangkawi is an independent non-profit educational institution, PT Freeport Indonesia has provided funding for its facilities and programs. "In the future, we hope to form partnerships with other groups who can share in the Institute's support," Mosel added.

Hans Rumpaidus is a native of Biak who came to work for PT Freeport Indonesia in 1996, when he joined a program for developing local Papuans. A mechanical engineer by training, he now teaches mathematics and mechanical trades at Nemangkawi. He also oversees the Pre- Apprentice Program, which accepts all Papuans from the Seven Sukus (tribes) who do not yet meet the entrance requirements for the Apprentice Program.

Nemangkawi has certain standards for admission, and only about 30 per cent of the applicants are accepted. However, any applicant from one of the Seven Sukus who does not meet the admissions criteria can enter the Pre- Apprentice Program. "During 2004, we had 103 preapprentices graduate into the Apprentice Program," said Trifena Tinal, who runs Nemangkawi. "These were people who did not have the basic proficiency to be apprentices, but they worked hard and raised their skills."
 

Jacky Beanal and other members of the Banti Carpentry Apprentice Program were instumental in the recent construction of a new resource building.

Tinal, a member of the Damal and Amungme tribes, was born and raised in Tembagapura and has been involved with Nemangkawi since its inception. Trained as a mechanical engineer in the U.S., Trifena worked in PT Freeport Indonesia's engineering group for several years before deciding that what she really wanted to do was to help her people. Now at only 28 years old, Trifena is an authority figure to the Nemangkawi students - she doesn't tolerate any nonsense and she only expects the best.

"People are starting to see that the Papuan apprentices can do just as good - if not better - work than other people," said Trifena. "That's why we planned for 150 apprentices in 2004 and ended up with more than 500." She says it's a matter of providing opportunities to the Papuan people. "Intelligence is a gift from God, but with the right opportunities, Papuans can take that gift and do something meaningful."
 
 

PT Freeport Indonesia President Director Adrianto Machribie lays the foundation stone for the construction of a new Nemangkawi Mining Institute
training complex in Kuala Kencana.
The highland village of Banti (in the Waa Valley) is home to about 3,000 native Amungme people. Until now, many have not had the advantage of basic education, but that is changing. Through the Banti Adult Education Program, operating under the auspices of Nemangkawi, about 50 Amungme adults are developing their literacy skills while also learning to be skilled carpenters.

According to Peter Mosel, "You can't take an adult without basic education and just put him in a classroom all day long. Instead, we provide two hours of classroom learning each day, and the rest of the day is spent applying what they have learned in a practical way - measuring materials, reading instructions and calculating building requirements - all while they are gaining hands-on experience in a trade."

Jacky Beanal, Jonas Bukaleng, and Menase Jawame are three Amungme men in their twenties who have been in the Banti Carpentry Apprentice Program for the past four months. The Banti carpentry apprentices were instrumental in the construction of a new resource center, a shining facility that will open during the first quarter of 2005. Sitting in one of the newly-constructed classrooms, Jawame said, "We want to be self-sufficient and have self-respect, like others." Beanal and Bukaleng nodded in agreement. "Being able to see the results of our building efforts helps us toward achieving this goal," Jawame said.
Training, Education and Papuan Development
Training, continuing education and development 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 improve significantly 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 and further progress in providing employment and management opportunities for Papuans is a commitment of our Company. At the end of 2004, PT Freeport Indonesia and its direct contractors had approximately 2,400 Papuan employees, compared to 600 in 1996, including 218 Papuan management staff employees, compared to less than 50 in 1996. Another 1,000 Papuans were employed by privatized companies serving PT Freeport Indonesia.

In 2003, with a view toward long-term development of Papuans in the workforce, PT Freeport Indonesia formed the Nemangkawi Mining Institute. The Institute's goal is to provide pre-apprentice, apprenticeship and advanced career development opportunities for hundreds of Papuans each year. In 2004, the Institute made significant advances. At the end of 2004, approximately 550 Papuans were enrolled in the Institute's apprentice and pre-apprentice programs. These students receive on and off-the-job training in welding, heavy duty mechanics, equipment operations, electrical and instrumentation work, clerical and administration duties and numerous other trades. It is expected that most of these students will be hired by PT Freeport Indonesia and its associated partners. The Nemangkawi Foundation was formally established when a groundbreaking for the Institute's new facility took place in 2004.

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

 

Several of the 550 enrollees in the Nemangkawi Mining Institute ready themselves for the local workforce by obtaining electrical/instrumentation skills.
 
Training is a vital part of PT Freeport Indonesia's employee development programs. During 2004, the Company's Quality Management Services Department provided over 3 million hours of training to nearly 15,000 employees. A state-of-the-art classroom and workshop facility accommodates some 300 employees per day, providing development opportunities in trades and management areas. In partnership with Caterpillar and Trakindo, the Development Center has established two computer-based training facilities, and a new Resource Center was constructed entirely by local Papuan students enrolled in an adult education program which combines literacy development with hands-on training in various skilled trades.

In addition to these training and education programs, educational assistance for Papuans who are not 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 not adequately benefiting local Papuans.

As a result, 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.
 

A Papuan entrepreneur received the training and other support from PT Freeport Indonesia to set up this successful full- service travel agency in Kuala Kencana.
 
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