Overburden Management

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 Freeport-McMoRan Copper & Gold

OVERBURDEN MANAGEMENT
Overburden is rock that must be moved aside to gain access to ore that is mined and processed to recover metals for commercial purposes. PT Freeport Indonesia handles overburden under a comprehensive Overburden Management Plan approved by the Government of Indonesia. Many metals occur in nature as sulphide minerals. When ore is mined and overburden containing sulphides is left exposed to the elements, the action of water, oxygen and naturally occurring bacteria has the potential to create sulfuric acid. This acidic water can dissolve metals contained in overburden rock and cause adverse environmental impacts in water drainage systems if not properly managed. This process is known as acid rock drainage (ARD).

PT Freeport Indonesia manages and monitors acid rock drainage from its operations. Independent audits of PT Freeport Indonesia’s environmental management system concluded that our overburden management programs are “well integrated” and “consistent with international practice.” Under the Government-approved overburden management plan, PT Freeport Indonesia places overburden in managed areas around the Grasberg open pit. PT Freeport Indonesia’s acid rock drainage mitigation plans provide for capture and treatment of the existing acid rock drainage, in conjunction with limestone blending and limestone capping of existing overburden placement areas to manage future acid rock drainage generation.

PT Freeport Indonesia’s long-term environmental monitoring program (LTEMP) evaluates potential impacts of our operations by routinely measuring water quality, biology, hydrology, sediments, air quality and meteorology in our area of operations. In 2006, the overall monitoring program encompassed the collection of nearly 7,000 environmental samples and the completion of over 53,000 separate analyses on these samples, including aquatic biology, aquatic tissue, plant tissue, mine water, surface water, ground water, sanitary wastewater, river sediments and tailings. The program ensures that we have the scientific information necessary to make management decisions about our operations so that we can minimize and mitigate environmental impacts.

PT Freeport Indonesia does not use mercury or cyanide in its processes, relying instead on a flotation process that physically separates the copper- and gold-bearing minerals from the ore. Comprehensive monitoring conducted over many years continues to show there is no significant elevated level of mercury or arsenic in the water, sediment, fish or plants from our operations area relative to background samples from the east and west of our project.
LONG-TERM ENVIRONMENTAL MONITORING PROGRAM


 
However, the recent high price of gold has enabled the profitable recovery of gold from the tailings stream by panners not licensed by the Government of Indonesia (GOI), who have moved into the area by the thousands, straining resources (particularly medical resources) and pressuring the local population. The unlicensed panners do not participate in traditional mining as their activity is recent and the panners are not native to the area. PT Freeport Indonesia cooperates with the government in attempting to control this situation and remove these panners, and this has precipitated occasional confrontations, which in one case resulted in a four-day shutdown of production in 2006. As a result of this activity, we have developed a concern about the possible use of mercury in refining this illegally taken gold. To date, our environmental monitoring programs have not detected mercury in the area. At our request, the United Nations Industrial Development Organization/Global Mercury Project inspected the area and confirmed that mercury was not yet being used in the area.

In 2006, PT Freeport Indonesia monitored water quality at over 200 locations throughout the project area, collected nearly 6,000 water samples and conducted nearly 45,000 water quality analyses. We monitored more than 100 sampling locations for nekton, benthos, plankton and mangrove invertebrates in the aquatic biology program. As noted above, data from this sampling continue to show that the estuary downstream of the tailings deposition area is a functioning ecosystem, based on both the number of species and the number of specimens collected of nektonic, or free-swimming, organisms such as fish, shrimp and mangrove aquatic fauna.

 


Between 1999 and 2006, over 6,000 samples of aquatic fauna were collected and a total of over 34,000 analyses conducted on them. The monitoring of benthos, or bottom-dwelling organisms, continued in 2006 at 16 sites in the estuaries and 40 sites in the Arafura Sea. Studies during our approved 300K AMDAL identified these organisms as being at risk from sedimentation. The results of this monitoring indicated that tailings sites generally have high densities of very small polychaetes, or marine worms, which are pioneer species to disturbed areas. Benthos diversity is now increasing in the Minajerwi estuary, an area that received tailings prior to design and construction of the tailings deposition area, indicating no long-term impacts once mining operations are completed. The monitoring also indicates no impact of tailings on the marine benthos in the Arafura Sea outside of the tailings management area.

As part of routine environmental audits by the Government of Indonesia regulators, Sarpedal (the government’s environmental laboratory) annually samples water, sediment, fish, ambient air and stack emissions. Results generally confirm PT Freeport Indonesia’s results routinely reported in Environmental Management Plan and Environmental Monitoring Plan reports to the government.


The Timika Environmental Labratory is an important part of Freeport Indonesia’s Long-Term Environmental Monitoring Plan.