Case 5: Gold Mining In West Papua Time Period November 2016

Case 5 Gold Mining In West Papuatime Period November 2016overview T

Case 5: Gold Mining in West Papua Time Period: November 2016 Overview (taken from The Guardian): You are the head of community relations Indonesia at Freeport McMoRan which operates the enormous Grasberg mine, one of the biggest gold and the third largest copper mine in the world. The mine is Indonesia’s single biggest taxpayer, with reserves worth an estimated $100bn. A recent fact-finding mission (by the Brisbane Archdiocese’s Catholic Justice and Peace Commission) described a “slow-motion genocide”— warning that its indigenous population is at risk of becoming “an anthropological museum exhibit of a bygone culture”. Since the Suharto dictatorship annexed the region in a 1969 UN referendum largely seen as a fixed land grab, an estimated 500,000 West Papuans have been killed in their fight for self-rule.

Decades of military and police oppression, kidnapping, and torture have created a long-standing culture of fear. Local and foreign journalists are routinely banned, detained, beaten, and forced to face trial on trumped-up charges. Undercover police regularly trail indigenous religious, social, and political leaders. And children still in primary school have been jailed for participating in demonstrations calling for independence from Indonesia. Today, indigenous tribes such as the Kamoro and the Amungme claim their communities have been racked with poverty, disease, oppression, and environmental degradation since the mine began operations in 1973.

Locals fear that the government’s controversial transmigration program, which resettles Indonesians from high-density islands such as Java to low-population areas, is wiping out their population completely. Indigenous Melanesian Christians—which comprised 96% of the population in 1971—now make up a 48% minority, with numbers expected to fall to 29% by 2020 if migration rates continue. Clashes between the indigenous Christians and migrant Indonesian Muslims have also resulted in riots, fires, and injuries. Furthermore, there have been severe health concerns related to the fact that Freeport dumps as much as 200,000 tonnes of mine waste into the Aikwa delta system every day. Sexually transmitted diseases, such as AIDS, are prevalent among the local population—up to 15 times higher than in broader Indonesia.

Dutch human rights law firm Prakken D’Oliveira submitted a formal legal complaint against Indonesia to the UN Human Rights Council, accusing the government of “long-term, widespread and systematic human rights violations” and the “complete denial of the right to self-determination of the people of West Papua”. Later this year, West Papua is expected to be granted full membership of the Melanesian Spearhead Group, an important sub-regional coalition of countries including Fiji, Vanuatu, and Papua New Guinea. There are fears this measure might mean nationalization of your company by a new West Papuan State, or sanctions by major countries against Indonesia if they continue to deny the referendum of self-determination.

Paper For Above instruction

Introduction

Freeport McMoRan’s operation at the Grasberg mine has been a significant economic contributor to Indonesia but has also attracted considerable international and local criticism due to human rights concerns and environmental issues in West Papua. This paper aims to develop a strategic community relations plan to repair Freeport’s image, prevent the nationalization of the company, and maintain a positive relationship with the Indonesian government amidst ongoing geopolitical tensions and human rights debates.

Current Context and Challenges

The situation in West Papua presents a complex challenge for Freeport. The allegations of genocide, systemic human rights abuses, and environmental degradation have tarnished the company’s reputation globally. The local population’s suffering—including displacement, poverty, health crises, and environmental destruction—has fueled calls for independence and increased scrutiny from international human rights organizations. Meanwhile, the Indonesian government’s stance on sovereignty and the economic importance of the mine complicate potential solutions. The threat of nationalization and sanctions further pressure the company into a delicate balancing act of corporate responsibility and geopolitical diplomacy.

Strategic Objectives

• Repair Freeport’s image as an enabler of human rights abuses by proactive engagement, transparent communication, and CSR initiatives.
• Prevent the nationalization of the company or sanctions by fostering positive government relations and demonstrating commitment to sustainable development and human rights.
• Ensure the continued operation of the mine through strategic partnerships, local community engagement, and compliance with international standards.

Proposed Strategies and Actions

1. Strengthening Community Engagement and Local Partnerships

Implement comprehensive community development programs focusing on health, education, and economic empowerment. Collaborate with local leaders and indigenous groups, acknowledging their rights and grievances. Ensure that community grievances are addressed transparently, establishing platforms for dialogue, and integrating their voices into decision-making processes.

2. Environmental Management and Corporate Social Responsibility (CSR)

Enhance environmental safeguards to minimize waste dumping and rehabilitate affected ecosystems. Publicly commit to sustainable mining practices, aligning with international standards such as ISO 14001. Develop impactful CSR projects that improve local health infrastructure and reduce disease prevalence, demonstrating genuine concern for community welfare.

3. Diplomatic Engagement and International Advocacy

Engage diplomatically with the Indonesian government to clarify that responsible mining is compatible with national interests and human rights. Work with international organizations, human rights groups, and regional bodies like the Melanesian Spearhead Group to advocate for respectful engagement and conflict resolution, emphasizing the economic benefits of responsible operations.

4. Transparency and Communication

Regularly publish detailed sustainability reports, third-party audits, and progress updates on community and environmental initiatives. Leverage digital platforms and media to transparently communicate the company’s efforts and commitments, fostering trust and mitigating misinformation.

5. Contingency Planning and Risk Management

Prepare for potential scenarios involving nationalization or sanctions by developing contingency plans, diversifying markets, and strengthening legal defenses. Maintain ongoing dialogue with stakeholders to adapt strategies proactively to geopolitical developments.

Ethical Considerations

In navigating this sensitive situation, Freeport must prioritize ethical responsibilities, respecting indigenous rights, environmental sustainability, and transparency. Upholding human rights and engaging authentically with local communities are essential to restoring trust and legitimacy.

Conclusion

Building a positive image amidst controversy requires transparent engagement, environmental responsibility, diplomatic advocacy, and stakeholder collaboration. By implementing a comprehensive community relations strategy grounded in ethical practices and international standards, Freeport can safeguard its operations, support regional stability, and contribute to sustainable development in West Papua.

References

1. Amnesty International. (2017). “The human rights implications of mining in West Papua”.
2. Human Rights Watch. (2018). “Indonesia: Repression and human rights violations in West Papua”.
3. International Council on Mining and Metals. (2017). “Sustainable development framework for responsible mining”.
4. Prakken D’Oliveira. (2016). “Legal complaint on human rights violations in West Papua”.
5. United Nations. (2017). “Guidelines on business and human rights”.
6. World Bank. (2019). “Environmental and social impact assessments of mining projects”.
7. Melanesian Spearhead Group. (2020). “Official communications and resolutions”.
8. International Crisis Group. (2019). “West Papua: Regional implications of independence movements”.
9. Fair Mining Practices Association. (2018). “Responsible mining standards”.
10. Global Witness. (2016). “Environmental impacts of large-scale mining in Indonesia”.