1 OPIC recognizes that Article 7.02(c) provides the termination of
the Contract is effective “as of the date of the breach,” which clearly
predated this notification. However, OPIC is extending the effective date of
the termination to provide Freeport with an opportunity to discuss this matter,
make alternative insurance arrangements if necessary and/or voluntarily
terminate the policy.
2 22 U.S.C. [[section]] 2191, et seq.
3 Indeed, contrary to representations made by Freeport in the 1990
Environmental River Study, it appears that tailings have been discharged to
fluvial systems other than the Ajkwa River system (e.g., massive sheeting has
occurred to the Minajerwi River system). The River Study specifically indicated
that the Minajerwi River would not be impacted in this manner.
4 See 22 U.S.C. [[section]][[section]] 2191(3) and 2191(n). OPIC
notes that Freeport-McMoRan was specifically apprised that OPIC’s statutory
goals serve as a fundamental basis for the Contract and underlying policy.
(See Contract [[section]]7.01(1).)
5 OPIC’s monitoring activities and the data supplied by Freeport
indicate that numerous other unreasonable or major environmental, health, or
safety hazards may exist as a result of the Project. These include, but are not
limited to, problems associated with acid mine drainage from overburden and
tailings; the concentration and bioavailability of toxic metals in the
tailings; the degradation of surface and groundwater quality as a result of the
Project’s operations; the increased sedimentation, sheeting and other adverse
effects that have been caused by discharges of higher percentages of coarser
grain tailings; the impacts of a 1990 log jam that occurred on the Ajkwa River;
and the mismanagement of solid and hazardous wastes at the site. OPIC
explicitly reserves the right to base the termination on these additional
environmental bases or any other ground as provided in Freeport-McMoRan’s
policy application or in Article 7.02 of the Contract if subsequently obtained
data or information so indicates. n
This article appears in November 10 • 1995 and November 10 • 1995 (Cover).