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Health, Safety and the Environment

Adaro seeks to maximize workplace safety in all its operations through the implementation of a comprehensive safety, health and environmental management plan that meets international standards for industrial health and safety and environmental rehabilitation. This management plan has been developed in accordance with ISO standards and was developed internally with assistance from both international and domestic consultants.

Before the award was discontinued, Adaro received Pratama Award for mining safety from the Ministry of Energy and Mineral Resources from 2002 to 2004 thanks to its good performance in maintaining the safety and health of its workers.

Although no serious or fatal injuries accidents occurred in 2009, the 23 LTI (Loss Time Injuries) on the site was higher than last year. Adaro’s LTIFR (Loss Time Injury Frequency Rate), which measured the number of lost time claims per million hours worked, of 0.65 was also slightly higher compared to the year before. The minimum target is to always keep the LTIFR below 1.

Adaro’s mining operations comply with environmental laws in all material aspects. Adaro attempts to keep disturbed areas to a minimum and land affected by mining is reclaimed progressively with replanting being undertaken as soon as the land development is ready. Water run-off from disturbed areas is closely monitored and treated in settlement ponds before it is used to develop irrigated areas for more intensive farming. Out-of-pit waste dumps are planned, with the waste being deposited in mounds up to six meters high. The final dump forms are contoured, top-soiled and planted with various fast-growing local grasses and trees. Adaro monitors air quality continuously in its concession area and at intervals along the haulage road to Kelanis to ensure that methods being used to control dust levels comply with international standards and to minimize impact on local communities. Air quality is controlled by fixed water sprays placed at intervals around the coal stockpiles. Water run-off from stock piles is channeled through an extensive drainage system to settling ponds for settlement of all solids, including coal dust. Water released from these settling ponds is closely monitored. Adaro’s surfacing of the haul road has significantly reduced amounts of dust produced. Waste management principally involves the disposal of used oils, grease and other hydrocarbon products from equipment maintenance and overhaul workshops. Each of Adaro’s workshops contains drainage systems for holding waste oils before disposal. Waste oils are disposed of through government-licensed disposal companies. Solid wastes within the concession area are collected and organic and recyclable waste is separated. Solid waste is then delivered to a local government managed disposal area in Tanjung.

Adaro must prepare and submit to the Indonesian government a quarterly report on environmental performance. The Ministry of Energy and Mineral Resources, in conjunction with the Ministry of Environment, oversees Adaro’s compliance with environmental laws and regulation in Indonesia. Adaro has, in general, complied with environmental standards and no significant environmental incidents have been noted.

Adaro received the PROPER Green award from the Ministry of the Environment for environmental rehabilitation and social programs excellence, the first time this has ever been awarded to a coal company. This is the second consecutive year that Adaro received this award. PROPER is an internationally recognized environmental social rating program that is designed to complement environmental law to enhance the efficiency and effectiveness of environmental rehabilitation.

Fadjar Widijanta, External Relations Manager Fadjar Widijanta joined Adaro in 2003 as External and Media Relations Officer, became External Relations Section Head and then promoted to External Relations Manager in 2008. Prior to this this he was the Scientific Assistant to the Executive Director of the Indonesian Coal Mining Association and from 1995 to 2001 held geological posts with Ivanhoe Mines Ltd and the South East Java Project. He has a degree in Geological Engineering from UPN Veteran, Yogyakarta.