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PTBA

Resettlement and Closure Planning

Environment Performance

The Company’s commitment to environmental preservation is reflected in the Company’s vision which expressly states “To become a world-class energy company that cares for the environment”. Therefore, the Company always prioritizes aspects of environmental preservation in carrying out mining activities. The implementation of mining activities is guided by an appropriate guidelines or “good mining practices” which begin at the planning stage that internalize the safety preconditions and environmental preservation. This has been regulated in an integrated management system and has been certified by an independent certification body.

Bukit Asam Environmental Excellence (BASEE) is an effort of the company to provide an excellent environmental management, which includes an integrated environmental management system to the Bukit Asam Management system (SMBA), Good Mining Practice, Enim Community Forest (TAHURA ENIM) and community empowerment.

Bukit Asam Environmental Excellence (BASEE) is an effort of the company to provide an excellent environmental management, which includes an integrated environmental management system to the Bukit Asam Management system (SMBA), Good Mining Practice, Enim Community Forest (TAHURA ENIM) and community empowerment.

Environmental Management Organization

Fully aware of the impact of its operational activities to nature, the Company places caring and competent human resources. This organization is in charge of the front line in ensuring the achievement of the Company’s vision and mission related to the environment and invites all Company people to protect each other in nature.

PTBA

Green Mining

Green mining has become the Company’s commitment in carrying out responsible and sustainable mining activities. Although it was only officially implemented in 2008, the Company has put forward environmental preservation and the interests of the community since mining activities in Tanjung Enim began in 1919.

All cycles are well planned starting from exploration, land clearing, development, exploitation, to post mining. Nature conservation and community aspiration are an integral part of carrying out every business activity in order to minimize all risks of social and environmental impacts.

PTBA

Environmental Impact Analysis

All activities of the Company are preceded by an Environmental Impact Analysis to identify the environmental impact that may occur and develop a plan to monitor and manage these impacts. In accordance with the nature and scale of activities to be carried out as well as the applicable regulations, there are environmental documents such as the Environmental Impacts Analysis (AMDAL) and Environmental Management Plan/Environmental Monitoring Plan (RKL/ RPL) for broader activities with more significant impacts, as well as Environmental Management Efforts/Environmental Monitoring Efforts (UKL/UPL) document for activities with less significant impacts.

In preparing this analysis, Company consults with the community to find common ground to manage the potential environmental impacts and social impacts that may arise from the activities that will be carried out. In 2018, there were 30 environmental documents prepared by the Company and two consultations with community/public hearing of Mine Closure Plan Document (RPT) IUP OP Rock and IUP UPO. Environmental documents become a minimum reference when PTBA runs its operations.

Land Acquisition

For the land acquisition process, the Company establishes Standard Operating Procedures in Procurement Procedures No Doc: BAMSP:PATB:7.2.1: 01; No Rev 1. This procedure stipulates that consultation with relevant stakeholders is carried out to obtain the compensation value of the deal and the settlement of disputed land. If the consensus does not reach an agreement, then the process is conducted through the legal process mediated by the government.

In the entire process, the Company seeks to minimize conflicts and mitigate the risk of human rights violations through cooperation with independent parties to monitor and report if there are indications of violations. Through this independent monitor, community members can report if there is a violation in the land acquisition process to be followed up by the Asset Management Unit, General Services, Balitas and Land Acquitition. All of these efforts have resulted in the absence of conflicts of law or human rights violations related to land acquisition. The entire process was carried out peacefully, witnessed by stakeholders and formally documented.

Mine Planning

The Company’s Green Mining begins with an accurate mine planning, which takes into account environmental sustainability from the outset. Mine planning has the ultimate goal of organizing post-mining, not only obtaining coal as much as possible. To achieve the vision of “World- Class Energy Company that Cares about the Environment”, the Company established 10 environmental management program which are used as reference on every stage of the mining planning, namely:

  1. Prepare a definitive plan of reclamation, including the Annual Environment Plan Document and 5-year Environment Plan Document, Reclamation Guarantee Document, Mine Closure Plan Document.
  2. Build and maintain in a controlled manner the means to control erosion in all of the mining locations, either the already final or existing ones.
  3. Design and construct the non-erosive post-mining topography.
  4. Reform the slope and greening all areas where mining activities are final.
  5. Develop and utilize local plant species and other productive crops.
  6. Optimize the available areas of storage.
  7. Minimize the openings of open land areas for mining operations.
  8. Control negative impacts on water quality, air quality, soil quality, solid and liquid wastes as well as B3 wastes.
  9. Reclamation of post-mining land with economic value (Tahura Enim, Hutan Kota, and Hutan Pendidikan).
  10. Carry out environmental R&D in order to search for an efficient and effective environmental management method.
  11. Allocate a proportional environmental funding until the end of the mine in the form of Reclamation Guarantee and Environmental Provision (Rp4,047/ton).

Referring to the ‘Mine is part of the Mine Closure plan’, the Company makes post-mining as an integrated part of mining plan. For the purposes of this plan, the Company has had a comprehensive reclamation plan which includes the Annual and 5-year Environmental Plan Document, Reclamation Assurance Documents, Mine Closure Plan Document. This document is a mandatory corporate documents that shall be created according to the prevailing regulations.

Good Mining Practices

As a coal mining company that utilizes natural resources, of course PTBA has a bigger responsibility for preserving nature. Therefore, PTBA is highly committed to exercise good mining practices, including through selective mining method. This method is a method that conducts a thorough land survey or review with certain geological calculations to determine which land to be used has economic reserves to minimize the use of disturbed land.

In the entire process, the Company seeks to minimize conflicts and mitigate the risk of human rights violations through cooperation with independent parties to monitor and report if there are indications of violations. Through this independent monitor, community members can report if there is a violation in the land acquisition process to be followed up by the Asset Management Unit, General Services, Balitas and Land Acquitition. All of these efforts have resulted in the absence of conflicts of law or human rights violations related to land acquisition. The entire process was carried out peacefully, witnessed by stakeholders and formally documented.

To ensure and improve employees’ understanding of environmental issues and good mining practices, the Company strives to communicate and train employees. During 2020, several trainings related to CSR and topics related to the environment have been carried out, as follows:

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Material Conservation

In implementing mining production, the Company does not process the produced coal, therefore no other raw materials or supporting materials used to produce its products other than coal itself. Coal is mostly delivered to the users through rail and sea transport. Materials consumed by the Company area are generally materials supporting the mining operations, coal ports, as well as office and domestic activities.

Energy Conservation

As the policy of energy efficiency, the Company has established a Policy of Electrical and Fuel Resources Efficiency as the basic guideline for energy conservation. Furthermore, the Company has assigned an Energy Manager who has been certified by the National Board for Professional Certification (BNSP)/LSP-HAKE and is supported by competent organizational and human resources to implement the policy. The Company also has a strategic plan with clear goals and schedules as basis for the implementation of energy efficiency methods. Monitoring of energy efficiency is carried out through internal and external energy audit.

To reduce the Company’s dependence on electricity from the PLN network, the Company began operating electricity with the Tanjung Enim Mining Mouth Power Plant with a capacity of 3x10 MW. This Mine Mouth generator operation, in addition to reducing electricity consumption from the network, also reduces the burden of electricity usage for the public.

In 2018, PTBA UPTE successfully implemented the Electrification Program by utilizing 7 (seven) units of Shovel Electric and 40 (forty) units of Hybrid Dump Truck with the achievement of an energy saving value of 218,255.59 GJoules which meant a decrease in GHG Emissions of 9,782 58 Tons of CO2e.

Monitoring Water Use and Quality [GRI 303-1] [GRI 303-2]

The Company is committed to use the water wisely and maintaining the sustainability of its resources. Therefore, the Company minimizes/do not collect water from land sources. This commitment is fundamental because by not taking water from land sources, the Company contributes to safeguarding the environment by not reducing water level, the volume of available water and not changing the ability of ecosystem functions.

Acid Mine Management [GRI 306-1]

Acid Mine Drainage (AMD is a natural phenomenon, in which the sulfur-containing rocks (acidic rocks) oxidized in the open air, and if exposed to water will become acidic water. PTBA has a conception of holistic water management, starting with rock geochemical investigations through modeling to facilitate the characterization of rock with PAF category (Potencial Acid Forming) and NAF (Non Acid Forming). PAF and NAF material handling is carried out systematically in the dumping area, ensuring the potential for the formation of acid water caused by the oxidation of PAF that does not occur. This is a mitigation/prevention of the formation of acid mine water in the dump area. The Company has a specific procedure, which regulates the disposal of Rocks with Characteristically Acids and Acid Mine. The management goal of both is that the water coming out of the mining area meets the quality of environmental quality standards.

Over Burden and Cap Rock Management

Top soil is taken thoroughly with heavy equipment and is piled up in the top soil bank. Top soil in the bank is maintained from erosion and damage by planting a cover crop in the well-established reclamation area using land arrangement. After reaching 50 cm, the top soil will be spread. Thus, the reclamation land is ready to be planted for revegetation and rehabilitation. In addition, there are also cap rocks which are the layers of soil between topsoil and coal seams which are moved from the mining site to be piled up outside the mine pit and into the mine pit in the area that has already been mined. Potentially acid formation is treated with attention in accordance with the Company’s Standard Operating Procedures. This type of overburden is piled up in areas specifically prepared and conducted liming to prevent environmental damage.

Reclamation and Revegetation

PTBA's Reclamation and Revegetation

PTBA

Besides planting, the Company allocates a portion of post-mining land at the Air Laya Mine to be used as a fishpond area to support food security. Now the farm area cultivated by Sepupu Jaya has reached 2.5 ha. In 2018, fish production from these ponds reached 22,000 Kg (22 ton) catfish, 10,000 kg (10 ton) patin fish, 5,400 kg (5.4 ton) , 600 kg (0.6 ton) parrot fish with total sales of Rp684,000,000.

Watershed Rehabilitation

The Company provides added value to the reclamation and revegetation activities through the rehabilitation and reforestation of watershed with an area of 3,660 ha, a part of the Musi River upstream. The river is used by the people living around the river to support life and agricultural irrigation. Musi River is the longest river on Sumatera Island, the water is sourced from nine rivers therefore earned the name Batanghari Sembilan, Palembang. Three rivers that flows into the Musi River are the Komering River, Lematang River, and Ogan River, all located within the watershed rehabilitation area of the Company.

Watershed rehabilitation implemented by the Company is a mandate from the Ministry of Forestry as part of the Borrowto- Use Permit for Forest Area (IPPKH) for the watershed rehabilitation in the District of Muara Enim and Lahat. For this, the Company has received watershed rehabilitation location permit specified by the Decree of Minister of Forestry No. SK.2625/Menhut-V/RHL/2012 dated May 14, 2012 regarding the Stipulation of Planting Location in the Framework of Watershed Rehabilitation on Behalf of PT Bukit Asam (Persero) Tbk.

Urban Forest and Educational Forest

Post-mining land that has been reclaimed and vegetated could be utilized for various purposes, in addition to plantations. On post-mining land adjacent to the Tanjung Enim, the Company constructed 50 ha Urban Forest. Urban Forest is built to meet the two objectives of urban forests, namely Recreation purpose and Germplasm Preservation purpose.

The facilities built in Tanjung Enim Forests are water park and recreation forest, and partly for artificial forest. Educational Forest is an initiative of the Company’s for the utilization of post-mining land that has been reclaimed. This educational forest area covers a total of 100 ha in the postmining land of Air Laya Mine, 60 hectares located in the area of Endikat, and 40 ha located in area of MTS.

In the Educational Forest seed source for seeding and revegetation of the seedbank location in the area of Educational forest has been taken.

Educational Forest has the following functions:

  • The observation place for educational and research purposes.
  • Test sites and application test in order to study land rehabilitation.
  • Test sites and application test in order to study land rehabilitation.
  • Test sites and application test in order to study land rehabilitation.
  • Ecological functions for the microclimate and genetic resources.
  • Reduction of greenhouse gas emissions in the scheme or REDD 
    (Reducing Emission from Deforestation and Degradation).

Utilization forCommunity

In line with the City Plan of Sawahlunto, post-mining area of 92 ha was built by the Company into tourist facilities for the community. Inside, there are Kandi Wildlife Park, Kandi Lake and Tanah Hitam Lake, Horse Racecourse, Motor Speedway, Horseback Riding, and Cattle Farm.

In this area, the postmining land of PTBA UPO is utilized for the welfare of the community. The entire post-mining area of PTBA UPO has been handed over to the Regional Government of Sawahlunto since 2008.

Sawahlunto is designated as a world cultural heritage by UNESCO under the name "Ombilin Coal Mining Heritage of Sawahlunto". The determination of Sawahlunto to be a world heritage site on Saturday, July 6, 2019. This is the efforts taken by PT Bukit Asam Tbk together with the government and the Director General of Culture.

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Bukit Asam Industrial Center (SIBA) Sepupu Jaya Fisheries

PTBA

This freshwater aquaculture utilizes a mud sediment pond covering an area of ± 2 .2 hectares owned by PTBA. This program, which has been implemented since 2014, has a goal to empower the community around the company to get added economic value.

It started with training activities for only 14 members of Sepupu Jaya group. This program now has produced fish production rate of 33.7 tonnes/ year and currently there are 25 groups with 375 members.

The benefits obtained by SIBA Fisheries include raw materials providers for fostered catering businesses, restaurants, catfish pecel sellers, fishing businesses, transportation services, and fish seed suppliers; all independently without depending on the company anymore.

Sepupu Jaya group is also used as a place for sharing knowledge for other groups and as a pilot pond for Muara Enim Regency. Over time, SIBA Fisheries has replicated the program by transferring knowledge to 4 groups (Pokdan Mandala, Kadir Pond, Tanjung Buhuk and Kampung Transmigrasi-Muara Enim) with a total of > 20 members.

Some of the SIBA Fisheries achievements are as follow:

  • New jobs opening for the community
  • Earned the trust as a fisheries training instructor and Self-subsistent Fisheries Extension Officer from the Muara Enim Regency Fisheries Service
  • As location of comparative studies / fisheries benchmarking of national scale
  • Received the Adibakti Mina Bahari award from the Ministry of Maritime Affairs and Fisheries and the Best I Aquaculture in South Sumatra Province