A: Irian Jaya is the western half of the island of New Guinea and it is considered to be among the most richly speciated regions on earth. However, Freeport’s mine at Irian Jaya posed several environment issues. Most significant among these were effects on the glaciers; overburden storage; tailing; water quality and deposition and the effects on the culture of local people. The biggest environment problem was overburden storage. To deal with this, the company was currently putting lime into the east stream of West Grasberg to neutralize the low PH coming out of the overburden and keep it there to prevent any acid mine drainage.
And the mining engineers considered severe earthquakes, high rainfall conditions that are all acceptable. TO deal with Water quality, p TFI had undertaken a long-term environmental monitoring program and developed a system of meteorological and hydrological monitoring along the river systems to measure the mine’s effect on water. Also, tailing deposition on freshwater swamp forest was a serious problem. However, Freeport’s environmental manager believed that there is no problem with tailing because they conducted numerous experiments With reclamation and revegetation in the tailings deposition area.
Facing the environmental problems, Freeport ncrease velocity in sensing and responding process. They invested large amount of money to concentrate on the environment problems and also try to find ways to solve it. In addition, they considered the sustainability that would benefit their company and local people as well. B: Mining activities affected every aspect of the local people’s lives-their housing, hunting, farming and foraging ways, their health, child care, and education.
They have abundant material wealth, which allowed them more generosity. Until 30 years ago, those people followed traditional patterns of life, which were similar to those of their ancestors. On the one hand, Freeport brought everything western into their lives: education, health care, sanitation, better food, clothing, building materials, electrification, improved bridges and roads, as well as degraded water, television, alcohol and obvious disparity of income. Freeport also spent more than $350 million to construct a new town, a new community.
It is hard to judge the benefits and drawbacks of the Freeport’s contribution. After all, Freeport helped them to improve the standard of living. C: This project could be sustainable, because this project created wealth for societies and promotes local economic development. The economic rents should be distributed under some conditions. They should consider the full social benefits and cost of project, such as project’s after-tax profitability or rate of return.
If this project could provide higher wages or salaries, workers can receive better education and trainings, and the local could enjoy the improved infrastructure. Also, the company could control the environment damages and social disruptions. Moreover, the government should take a more protectionist approach in the countrys mining sector. In this way, the economic rents could be distributed. D: For Freeport’s private profit, they should expand it.
They had already invested money to set up an environmental organization to solve the environment problems that may cause by their mining activities. Now this mine is the world’s largest gold mine and third-largest copper mine, Freeport still want to continue develop it to maximize their profits. However, Indonesia should not allow it to expand, because the government should consider the environment effects of the Freeport’s mining activities. Moreover, natural resources and sustainability is also an aspect that should be taken into consideration.