Second Death Reported Near Indonesia's Grasberg Mine

By Rich Bowden

Img: Grasberg gold and copper mine. Credit: Alfindra Primaldhi

Indonesian law enforcement officials have confirmed that a security guard working at the giant Grasberg mine has been killed, one day after Australian Drew Grant was shot in an apparent ambush.

Twenty-nine-year-old Grant, worked for the US mining company Freeport McMoRan, the operator of the mine in the Indonesian province of West Papua which has been a cause for conflict with West Papuan separatist forces.

The second Freeport employee to be killed was named as Markus Ratealo by local media reports however there are claims it is unclear whether separatist forces or Indonesian law enforcement were to blame for the latest attack.

Australian Foreign Minister told reporters he had received assurances from Indonesian police that they are treating the deaths as a "matter of urgency" and an inquiry into the circumstances was underway.

"The Indonesian police have advised Australian officials that they are treating this matter as a high priority investigation," the minister said.

He added that Indonesian authorities had requested the help of Australian police in the investigation.

"That investigation has commenced by the Indonesian national police and [they] have requested the Australian Federal police to provide officers to Papua to assist in the investigation."

The minister said as a consequence of the request two Australian Federal police officers have arrived in Papua from Jakarta to assist in the investigation.

The ABC quoted Victor Yeimo, the chairman of the West Papua National Committee, as confirming that separatist activity was being carried out in the area at the time of Mr Drew's death.

"Yes, in the area where Drew was, it's clear that OPM did an attack in that area," he said.

"But it's unclear whether they hit Drew's car or not because that was not the only place where they did the attacks."

"They attacked in other places too, but far from Drew's car, so it's not clear whether the shots could hit Drew or not."

However some independent allegations have been raised over the possibility of the involvement of Indonesia's mobile police brigade (Brimob) in the killings as the company is considering replacing the brigade with private contractors, reports the ABC's AM program.

The Australian newspaper is reporting that Mr Grant's car had been sprayed with police or military-style weapons.

"It's clear they (the attackers) were using weapons belonging to the police or the military," the newspaper quoted Papua police chief Major General Ekodanto as saying.

"He was shot five times in the neck, chest and stomach from a distance of 25m. We're still investigating the case."

However the major general refused to speculate on a possible motivation for the attack.

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China, Australia Diplomatic Wrangle Widens

By Rich Bowden


Img: Australian Foreign Minister Stephen Smith. Credit: US Dept of Defence



The diplomatic fallout between China and Australia continues to grow with Australian authorities denied access to detained Rio Tinto executive Stern Hu and questions being raised as to whether the dramatic arrest is a "payback" by Chinese authorities over a failed state-owned mining company's bid for the mining giant.

Mr Hu and three of his associates were detained in Shanghai on Sunday and charged with attempting to steal Chinese state secrets. Consular officials have been denied access to the Australian Mr Hu until today and Foreign Minister Steven Smith expressed clear signs of frustration when he told the media of his department's attempts to glean information from Chinese authorities.

"I would have of course much preferred that this information would have been given to us much earlier, through official diplomatic channels," he said, claiming he was made aware of the charges through the Chinese media.

The ABC quoted Mr Smith as saying an official Chinese statement posted on a government website claims that during iron ore negotiations this year Mr Hu, "gathered and stole state secrets from China via illegal means, including bribing internal staff of Chinese steel companies."

Mr Smith explained that "The Chinese state and the Chinese authorities take a much broader view of what state secrets or national security might be than, for example, Australia or other nations might."

"It's very hard for the Australian Government to frankly see the connection between what might be daily commercial negotiations or matters and national security issues," reported the ABC.

"But when you look and reflect upon the statements as I have this morning it's quite clear they are proceeding on the basis of possible criminal charges... arising as a result of commercial or economic negotiations."

The affair has touched off claims that the detention of Mr Hu is a "payback" from the recent failure of Chinese-owned Chinalco mining company to purchase an 18 percent claim in Rio Tinto.

Rio executives turned down the $US19.5 billion ($A24.89 billion) Chinalco bid in favour of an extension of a deal with rival BHP Billiton.

The Australian Nationals leader in the Senate, Barnaby Joyce gave voice to this theory earlier this week.

"We know that we're failing to get proper diplomatic access to them, to Mr Stern Hu, and what we can deduct is that there'd have to be a relationship between Chinalco's failure in its purchase of Rio and the ramifications that go beyond a state-owned enterprise all the way to the Chinese Government," he told the PM program on July 8.

"All investments overseas go through a central organising authority to where they're going to purchase overseas and that the disappearance of the four people - one of whom is an Australian citizen - if it's nothing to do with Rio, then why can't we get diplomatic access to them and find out exactly what's going on?" he asked.

However a statement by Chinalco today denied the arrests had anything to do with the failed bid, saying it was sympathetic to the executives' plight. The company also denied earlier media reports that it had been critical of Rio Tinto.

“Chinalco has been in contact with Rio Tinto expressing our mutual concern for the current situation with their staff,” a statement released today said, adding that earlier statements attributed tovice-president Lu Youqing criticising Rio Tinto executives were misquoted.

“These comments were incorrectly reported and do not reflect the company’s view,” the release added.

Prime Minister Kevin Rudd has said he will consider making personal representations on behalf of the executives.

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