Firm’s Insurance Cut

* As CEO of Freeport-McMoRan Copper & Gold Inc. I feel compelled to respond to your Nov. 2 report. I strongly believe that the Overseas Private Investment Corp. (OPIC) acted with undue haste in seeking to cancel political risk insurance it had issued on our Indonesian mining operation.

Sadly, OPIC refused to await the results of a voluntary independent environmental audit, requested by the Indonesian government, that in just a few months will establish the environmental record of the mine. Our Indonesian operation adheres to the highest environmental standards and has received all necessary environmental permits from the Indonesian government. In addition, we have established a multimillion-dollar tailings management program involving a system of levees and a fully equipped laboratory to monitor water quality so that it conforms to U.S. EPA drinking-water standards.

We have invested more than $3 billion on this project, including the construction of roads, hospitals and schools for the benefit of the people of Indonesia. This is an outstanding state-of-the-art project that has provided more than 17,000 jobs and a variety of economic and social benefits. All who have seen it regard it as a model for Third World cooperation and involvement. Indeed, it is precisely the sort of project OPIC was created to support. We are proud of our company’s work and record in Indonesia.

JAMES R. MOFFETT

New Orleans