Freeport Seeks Mediation in Legal Spat
October 9, 2011
For the past two months, a legal battle has raged on between a human rights organization and the Mining Giant Freeport McMoRan and the government. The Indonesian Human Rights Committee for Social Justice (IHRC) initiated a lawsuit to force the mining company to renegotiate its contract for the Grasberg mine in Papua.
In past party negotiations, mediation may be used as a possible alternative to settle the case. However, the IHCS insists that it will only mediate if Freeport and the government agree to meet the key demand to renegotiate the 50 year contract at Grasberg. IHCS insists that Freeport has breached a regulation on the royalty rates on non-taxable income based on the US based Freeport’s contract with the government.