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Social Change & Development |
| II. Social Change and Development |
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Social and
Cultural Commitments
We are committed to building and maintaining positive relationships with our Papuan neighbors, in particular the indigenous communities closest to our area of operation. We have in place a strong Social, Employment and Human Rights Policy, which is included in the appendices to this report. We are committed to providing opportunities for social, educational and economic development, including special efforts to train and hire those indigenous to the area. We also continually strive to learn more about the Papuan people, their histories, culture and changing circumstances, to build more constructive relationships and to enhance our outreach efforts. Most important is our commitment to extend respect to indigenous Papuans and their cultures and to engage with them in an ongoing dialogue on issues of mutual interest. We understand the desire of the unique people of Papua to preserve their unique cultural traditions and are dedicated to helping them accomplish this goal. We have long supported the Asmat and Kamoro Art and Cultural Festivals. We have also sponsored social, artistic, cultural, language and economic studies of the Amungme and Kamoro people, the traditional inhabitants of our area of operations. These studies have improved mutual communication with and understanding of our neighbors and contributed significantly to international knowledge of their unique cultures. We have also sponsored two books about the Kamoro and Amungme to help us and others throughout the world understand and appreciate their societies. Building Mutually Beneficial Relationships In furtherance of our commitment to build and maintain constructive and positive relationships with our Papuan neighbors, we engage in continual dialogue with local leaders. These dialogues have led to important agreements with the Amungme and Kamoro people. PT Freeport Indonesia has established voluntary trust funds for the Amungme and Kamoro to which the company has contributed $8.5 million through 2006 and, in conformance with the applicable land rights agreement, will continue to make contributions of $1 million annually (see Land Rights Recognition Programs). A portion of these funds has been used to purchase shares in Freeport-McMoRan Copper & Gold Inc., thereby permitting the Amungme and Kamoro to become equity participants in the mine. As of December 31, 2006, the funds held a combined total of nearly 22,000 common shares in Freeport-McMoRan Copper & Gold Inc., worth more than $1.2 million valued at the share price as of that date. These funds are in addition to the social development fund (see Freeport Partnership Fund for Community Development) established by PT Freeport Indonesia, which has received approximately $242 million from our operations since 1996 for investments in projects selected by a board of local stakeholders. A Memorandum of Understanding consummated in 2000 by Amungme and Kamoro local community organizations and PT Freeport Indonesia focuses on socioeconomic resources, human rights, land rights and environmental issues. This landmark agreement, achieved after five years of negotiations, fosters continuous dialogue to improve mutual understanding and respect, to enable the local people to achieve their aspirations and to continue harmonious relationships. As part of the 2000 agreement, the MOU Forum was created — consisting of representatives of LEMASA, the Amungme tribal agency; LEMASKO, the Kamoro tribal agency; YAHAMAK, a nonprofit advocacy group for Papuan women and children; the regional government and PT Freeport Indonesia. The MOU Forum meets regularly to discuss issues related to implementation of the 2000 Memorandum of Understanding. This continual dialogue has led to further agreements and mutually beneficial projects and has instilled a sense of partnership and community between us and our Papuan neighbors aligning our shared interests in a sustainable and more promising future. |
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Human Rights Commitment and Initiatives Freeport-McMoRan Copper & Gold Inc. and PT Freeport Indonesia have made strong, unequivocal commitments to human rights. This commitment is expressed in the company’s Social, Employment and Human Rights Policy — formally adopted by both the Board of Directors of Freeport-McMoRan Copper & Gold Inc. and the Board of Commissioners of PT Freeport Indonesia — which requires us to conduct our operations in a manner consistent with the Universal Declaration of Human Rights, to educate our employees about human rights, and to protect any employee who reports suspected human rights violations. This policy may be found in the appendices to this report. We require selected personnel to certify annually that they have neither participated in nor are aware of any human rights violation. If a human rights violation were to be reported, information about that violation would be forwarded to the Indonesian Human Rights Commission. Contractors and privatized companies serving PT Freeport Indonesia must also comply with this policy or implement their own similar policy. In 2005, PT Freeport Indonesia created the new position of Senior Human Rights Compliance Officer and named Jansen Joku, a distinguished Papuan, to this post. In this important role, Mr. Joku is responsible for the implementation of our Social, Employment and Human Rights Policy and for educating our employees and contract partners in the areas of social responsibility and human rights. During 2006, we conducted training on the company’s Social, Employment and Human Rights Policy for over 5,000 employees, and an expanded educational program is being carried out in 2007. In addition, through the company’s closed-circuit television system, we periodically broadcast an informative video explaining the policy and its application to our organization. PT Freeport Indonesia’s annual Social, Employment, and Human Rights Compliance Certification was completed in 2006 with 100 percent of the respondents reporting compliance. We have also held seminars within the local communities, including the government, on the rule of law, the definition of human rights and how to report infractions. Freeport-McMoRan Copper & Gold Inc. joined other mining and oil and gas companies and human rights organizations in endorsing the joint U.S. Department of State-British Foreign Office Voluntary Principles on Human Rights and Security. These principles are also included in the appendices to this report. Twice each year, participants in the voluntary principles program meet to review their implementation and to seek better ways to provide security for extractive industry operations around the world to protect employees and investments while assuring the highest level of human rights compliance. Freeport-McMoRan Copper & Gold Inc. representatives regularly participate in these meetings. Overseeing the development and implementation of our policy on human rights is an internationally recognized expert, Judge Gabrielle Kirk McDonald. Judge McDonald has been a distinguished civil rights attorney and U.S. federal judge and most recently served as President of the International Criminal Tribunal for the former Yugoslavia. She serves as Special Counsel on Human Rights to Freeport-McMoRan Copper & Gold Inc. As a member of the company’s Board of Directors, Judge McDonald reports regularly to the Board on human rights issues and developments. In 2006, Freeport-McMoRan Copper & Gold Inc. published on its web site its first report pursuant to the Global Reporting Initiative (GRI), a reporting mechanism adopted by the members of the International Council on Mining & Metals (ICMM), of which Freeport-McMoRan Copper & Gold Inc. (FCX) is a founding member. In 2007, we will publish the 2006 report, which will be fully compliant with GRI standards. |
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