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Freeport-McMoran CEO: Resource-Based Industry's a Long-Term Trend  

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19 October 2018 21:58 WIB

Richard C. Adkerson, President and CEO of Freeport-McMoRan Copper & Gold Inc. Tempo/Amston Probel

The recent APEC conference in Bali was also a discussion forum among the 1,200 global CEOs who attended the event. The main theme throughout the two-day summit was inclusive sustainable growth and the global economic outlook, which covered sub-topics such as new opportunities for growth, reshaping priorities, evaluating strategies and the business of innovation. Richard C. Adkerson, vice-chairman, president and COE of Freeport-McMoran Copper & Gold, Inc., shared his views with Tempo on the summit's agenda.

What are the challenges Freeport face in investing in Indonesia?

We operate in Papua in a very physically challenging place. The mine is at a height of roughly 35,000 meters where rainfall is significant, the terrain is severe and it's remote. We have a workforce of 23,000 people, so we have to transport them there, feed them, house them. It's challenging just from that physical aspect. Managing the environment asoect is another big challenge, which we manage effectively. Currently a big problem is illegal mining, which has created social and securities issues there.

How much of the country's legal uncertainty and regulatory policies cause you headaches?

It's a problem all over the world. You heard Prime Minister Abe talk about structural needs to change regulations in Japan> In the mining industry, where you make big investments and you have to recover them and profit from them over decades, you need to have legal certainty and transparency and visibility to have the confidence in making such investments.

What innovations have you applied to mining in Indonesia?

We're using mining innovations in our drilling, in developing underground ore bodies and we're using GPS devices to manage logistics for our haul trucks. Safety is a huge issue. The conditions with the elevation changes and the weather make the work dangerous and so a lot of technology is focused on safety. We have devices on some of our trucks that monitor the eyes of the drivers to detect fatigue.

How do you see the future of resource based industry in the region?

I'm very optimistic. This is the leading region of the world now. Forty percent of the world's people live here. But the future goes beyond this region. There will be challenges. People will develop alternative forms of energy. But technology made the US, and the US will be the largest producer of oil and gas in the world. This whole notion of global growth is a long-term trend, I think it's going to create a great demand for resources, for companies like ours, great needs for infrastructure developments for places like Indonesia. (*)



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