Resistance to Freeport Local people, including some highland Amungme and Dani, have joined with OPM rebels to fight expansions of the mine and the forced resettling of people from their traditional lands. In 1977 the slurry pipeline was cut in several places, power lines were severed and mine trucks were attacked.
In March 1996, thousands of angry local people rioted in the streets of Timika. Angry about the loss of traditional land and economic disparities in the mine area,  they attacked Freeport offices and the airport, set fire to a petrol store and stole Freeport vehicles.
In August 1997, two people were  killed  when  soldiers opened fire on hundreds of Ekari and Dani tribesman armed with bows and arrows, who were blocking a road leading from Timika to the mine. They were protesting the suspicious deaths of two young Ekari men and at the method of distribution of a $20 million compensation fund paid by Freeport into the     Integrated     Timika Development Program. A government proclamation under the Emergency Law demanded that all  sharp  implements  in  the Mimika community, be handed over to authorities, but this incuded food gathering implements.
In  September  1997,  the
Indonesian   Human   Rights Commission      (KOMNAS) announced it would investigate a submission by the Amungme Tribal Council alleging systematic abuse of human rights by Freeport security staff and ABRI in the Timika region.
Legal Challenges In 1995 the Indonesian Forum for the  Environment,  (WALHI),  was unsuccessful in the court proceedings it brought against Freeport on environmental grounds.
In April 1996 a $6 billion classaction against Freeport was filed in the US courts by Tom Beanal, head of the Amungme tribal council. In an attempt to placate the-local people, Freeport offered to invest one per cent of its annual profits (roughly US$15 million) in local "development schemes", an offer which was rejected by indigenous representative groups.
In April 1997, a US District Court Judge rejected Tom Beanal's environmental claims against Freeport, finding that  despite the  destruction Freeport's corporate policies are causing to the natural habitat of Indonesia, there is no definitive international environmental law that covers this. The judge did find however, that Beanal's claims against Freeport for tribal genocide and human rights violations had a basis in law. The ruling allows Beanal to proceed against Freeport for serious human rights violations on behalf of the Amungme people.
Since filing the lawsuit, Tom Beanal has been the subject of harassment by Indonesian authorities, and accused of involvement with the OPM. The atmosphere has deteriorated to the extent where the subdistrict of Mimika is now the most militarised area in Indonesia.
THE AUSTRALIAN CONNECTION Australian shareholdings In 1996 Australia's CRA merged with the larger UK company, RTZ, to become RTZ/CRA the world's largest mining company. A year later the merged company changed its name to Rio Tinto.
The global mining giant holds a 12% share in Freeport-McMoRan Copper & Cold. Under the terms of the Rio Tinto/Freeport deal, Rio Tinto will spend over $Albillion to fund future  expansion  of  the  mine.Through funding the mine's expansion, Rio Tinto will hold a 40% share in all future production expansion at the West Papuan mine. AWPA believes that Freeport should be referred to as Freeport/Rio Tinto to ensure that the connection is made between the companies.
Major shareholders in Rio Tinto are ANZ Bank, Westpac, AMP, Qld Investment Corp, NSW State Super and MLC. Two thirds of Rio Tinto's shares are held by insurance companies and superannuation funds. AMP and NSW State Super also hold shares directly in Freeport-McMoRan, The   Australian   Securities Commission is currently investigating allegations that Rio Tinto misled its shareholders. The Mineral Policy Institute   and   the   Australian Conservation Foundation are accusing Rio Tinto of misinforming its shareholders. At the company's May 1997 annual meeting, shareholders were told that the Grasberg mine operates according to internationally accepted environmental and community relations standards, and that Freeport is not involved in any human rights abuses.
During construction of the mine, the port facilities at Amamapare, and later the construction of Timika town, Australia was a major supplier of labour and construction supplies.