HOUSE C'TTEE RECOMMENDS MORATORIUM ON FREEPORT OPERATIONS

Jakarta, Oct 23 (ANTARA) - A House of Representatives (DPR) working committee dealing with affairs involving US-based gold and copper mining company PT Freeport has recommended a moratorium on the company's operations for the duration of a proposed examination of its finances by the State Audit Board (BPK).

Tjatur Sapto Edy, a member of the committee, said here on Thursday the recommendation had been submitted to the House's Commission VII which was expected to deliberate on it next December.

"The Commission VII will start deliberating the recommendation after the House's recess in December," he said.

He said the suspension of the company's operations could last six to 12 months, depending on the time needed by the BPK to complete its audit.

Besides the moratorium, the working committee had also recommended that Indonesian build a copper and gold processing plant at home and initiate efforts to improve the environment around PT Freeport's mining area.

Sonny Keraf, another member of the working committee, said BPK's investigative audit should also cover the environmental and social aspects of Freeport's operations.

"So far, Freeport is disposing its tailings directly into the sea. We recommended that a tailing pipeline be built." he said.

The working committee's recommendation would be conveyed to the president through the House leadership.