will be dumped into the local river system, posing major environmental, health and safety hazards for the surrounding ecosystem and the local inhabitants.The Komoro people in the lowland Koperapoke area have been ordered to stop drinking river water and consuming sage, their staple food. Freeport has distributed some 44 gallon drums for families to collect rainwater.Toxic tailings
The dumping of waste rock and tailings into the headwaters of the Otomona-Ajkwa River system is one of the most critical environmental impacts of the mines operation. By Freeport's own estimates, the Grasberg mine dumped more than 40 million tonnes of tailings into the Ajkwa River in 1996 alone.
Much of the waste rock (overburden) is now being dumped into two alpine valleys adjacent to Mt. Grasberg. By the time the mine  ceases  production,  the Wanagong Valley will be filled to a depth of 450 metres and the 114 hectare Carstenszweid meadow will be covered by 250 metres of waste rock.
The waste rock and tailings mix contains high concentrations of copper which is highly toxic to aquatic organisrr~s. This river system, used by indigenous people for drinking water, fishing, washing and transport has been turned into' an unsightly slurry channel, poisoning fish and smothering and killing all plant life along the previously fertile river banks.(Other mines like Panguna on Bougainville and Ok Tedi in PNG have had similar effects).
Despite this obvious devastation, monitoring of the river system is rudimentary even when compared with BHP's Ok Tedi mine, in PNG.
Freeport is similarly making little attempt to address the issue of trace metal, and turbidity pollution of the Arafura Sea, where the mine's waste ends up. Huge amounts of silt are blanketing and polluting the shallow waters and coral reefs.
Plans to expand Freeport's operations within a recently granted additional 2.6 million hectare concession causes great concern for other communities and their environment.Cancellation of OPIC insurance After a lengthy investigation of Freeport's environmental record at the  mine,  the  Overseas  Private Investment Corporation (OPIC), a US Federal government agency that supports American companies doing business   overseas ,    cancelled Freeport's $US100m political risk insurance policy in October 1995 (see Appendix 3). The report cited "major" environmental problems at the mine. The OPIC insurance policy was reinstated in April 1996, after Freeport threatened to file a protracted lawsuit against the federal agency.However, Freeport decided to cancel its insurance policies with both OPIC and the World Bank's Multilateral Investment   Guarantee   Agency (MIGA) five months later. In so doing, Freeport avoided an imminent investigation by the World Bank into its mining operations.
One of the main strategies employed by Freeport, as part of its campaign to improve its image, was the audit by its environmental consultants, Dames and Moore, a company that had precious contracts with Freeport.  The  audit  essentially absolved Freeport of many of its past environmental sins, by way of praising recently introduced changes to the company's operations. The audit was subsequently  described by experts  as  "quite  superficial" Criticisms of the audit included the fact that areas such as the impacts of huge amounts of rock waste and the dangers of acid mine drainage were not addressed.
Freeport continues to refuse independent monitoring of its operations.