Freeport-McMoRan Cooper & Gold, Inc. 1615 Poydras Street, New Orleans, LA 70112

August 31, 1995

Ms. Lori Udall, Washington Director, International Rivers Network, 1025 Vermont Avenue N.W., #300, Washington, D.C. 20005

Dear Ms. Udall:

This letter is in response to your inquiry regarding Freeport-McMoRan and the PT Freeport Indonesia operations in Irian Jaya (West Papua).

Australian Council for Overseas Aid Report "Trouble at Freeport" and Bishop Munninghoff's Report These reports have been brought to the attention of the National Commission on Human Rights, which is conducting an investigation into the alleged incidents. PT Freeport Indonesia is cooperating fully with the Commission's investigation into the alleged incidents and we await its findings. It would be inappropriate for Freeport to comment on this ongoing investigation. The Commission's report will speak for itself. Attached is a recent Jakarta Post article concerning the Commission's initial findings and also a synopsis of a recent report which includes Bishop Munninghoff's comments concerning unauthorized changes to his report. Both articles speak for themselves. (rsb: I do not have the referenced enclosures)

PT Freeport Indonesia's relationship with Indonesian military: PT Freeport Indonesia, one of Indonesia's largest employers and major taxpayers, is a contractor to the Government of Indonesia. The operation is considered a critical national asset. As a guest contractor, Freeport operates under its host government's laws and respects the jurisdiction of the military, which is responsible for the safety and security of its people. Freeport's security personnel are responsible for internal security matters only. The are unarmed and are not part of the military.

PT Freeport's Indonesia's Sustainable Development Program Freeport's 27 year presence in Irian Jaya (West Papua) has brought many opportunities to the local people based on their expressed needs. PT-FI has assisted the government in creating and facilitating new educational opportunities, enhanced health care programs, provided direct employment for local people currently totally more than 1,500, and provided economic opportunities for many others throughout the region. Many of PT-FI's programs help local people to develop business based on their traditional skills, thereby catalyzing sustainable business development. The primary beneficiaries of these programs include the Amungme and Kamoro people both inside and adjacent to Freeport's Contract of Work area. Other beneficiaries include members of other tribal groups from surrounding regions, including the Moni, Dani, Nduga, Me (formerly Ekari) and Asmat people. Freeport enjoys excellent working relationships with these groups. Tribal leaders have expressed appreciation for the Company's numerous significant programs, some of which are outlined in the attached Fact Sheets.

WALHI's suit against the Department of Mines and Energy WALHI's suit regarding whether correct procedure was followed in the approval of PT-FI's RKL and RPL (Environmental monitoring and management plans), is currently being heard by an Indonesian court. It would be inappropriate for Freeport to comment on a lawsuit that is pending before the Indonesian courts and to which it is not a party. The court's decision with respect to this procedural matter will be forthcoming and the decision will speak for itself.

Thank you for contacting us regarding your report. I would appreciate receiving a copy of your newsletter.

Sincerely,

(signature)

Thomas J. Egan

The foregoing was typed by Robert S. Boyer (rsb) from a copy received from Lori Udall.