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Security

The Voluntary Principles on Security and Human Rights serve as guidelines for our security and human rights programs, interactions with host government police and military personnel, and with private security contractors. We have remained active in the Voluntary Principles organization and have recently been appointed to a two-year term on the Steering Committee.

PT Freeport Indonesia Security risks near our PTFI operations in Papua, Indonesia stem from the presence of in-migration, separatist activists in the region, presence of illegal gold panners in the project area, as well as social, political and ethnic tensions within the local community and in other areas of the province.

The PTFI Security and Risk Management Department employs approximately 710 unarmed personnel and 125 unarmed private security and transportation/logistics personnel on a rotational basis that perform functions such as protecting facilities, monitoring shipments of supplies and products, assisting in traffic control and aiding in emergency response operations. From the outset of PTFI’s operations, the Indonesian government has looked to PTFI to provide logistical and infrastructure support and assistance because of the limited resources of the Indonesian government and the remote location of and lack of development in Papua. PTFI’s financial support for the Indonesian government security institutions assigned to the operations area represents a prudent response to its requirements to protect its workforce and property, better ensuring that personnel are properly fed and lodged, and have the logistical resources to patrol our roads and secure our operating area. In addition, the provision of such support is consistent with PTFI’s obligations under our Contract of Work, reflects our philosophy of responsible corporate citizenship, and is in keeping with our commitment to pursue practices that will promote human rights awareness. PTFI’s share of support costs for the government-provided security was $21 million for 2015. The supplemental support consists of various infrastructure and other costs, such as food, housing, fuel, travel, vehicle repairs, allowances to cover incidental and administrative costs, and community assistance programs conducted by the military and police.

On January 1, 2015 a shooting incident occurred in the highlands village of Utikini, near the company’s mine site town of Tembagapura, killing two members of the Indonesian police’s Mobile Brigade and one PTFI security employee. The police arrested two men and as a result of this incident, the police closed off access to illegal panning areas in the village and evicted non-resident panners from the area. Months after this incident, an influx of illegal panners was observed in the area that had been temporarily closed off. No formal links have been made between this incident and previous shooting incidents on PTFI’s roads.

From the beginning of 2009 through December 2015, there have been 20 fatalities and 59 injuries to employees, contractor employees, public security personnel, and civilians from shooting incidents within the PTFI project area, including the January 1, 2015 event described above.

Tenke Fungurume Mining TFM currently faces a number of security and social risks, including those associated with illegal artisanal mining activity in the concession area, as well as an influx of migrants looking for economic opportunities. TFM also recognizes the risk of instability to the north of its concession, potentially impacting the concession area. TFM employs approximately 325 unarmed security employees and 835 unarmed private security contractors. In addition to these security personnel, the national government has assigned 112 members of the Mines Police to the TFM concession area. The Mines Police are a division of the Congolese National Police (PNC) and are responsible for maintaining security in mining concessions throughout the DRC. Since 2008, TFM has been party to an MoU with the Mines Police. The MoU details the working relationship between TFM and the Mines Police, including areas of support, coordination and commitment to TFM policies and procedures, including business ethics and human rights. The Voluntary Principles are incorporated by reference and included as an attachment to the MoU. TFM provides food, housing, medical services, supervised transportation, non-lethal equipment and monetary allowances as well as direct payments to the government for the provision of the security assigned to the concession area. The total cost to TFM for this support, including in-kind support, totaled less than $1 million in 2015.

Provision of support to host country security personnel in the DRC and Indonesia is consistent with our obligations under our agreements with the respective governments, our philosophy of responsible corporate citizenship and the Voluntary Principles. We facilitate host government security training on the Voluntary Principles and periodically review our support practices to ensure they are appropriate, lawful and properly controlled.



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