Health and Safety
Aiming for an Accident-Free Workplace
Constant vigilance: A member of Adaro Indonesia’s emergency response team on an inspection at the Kelanis river terminal.

Constant vigilance: A member of Adaro Indonesia’s emergency response team on an inspection at the Kelanis river terminal.

To attain our vision of becoming a leading Indonesian mining and energy group, we are fully committed to achieving the highest measures of health and safety for our workforce.

At Adaro Energy and across all of our subsidiaries we constantly strive for a safe workplace. We believe that every work-related incident, injury and illness is preventable. At the same time we are keen to work with local governments and the community towards a sustainable environment, which means minimizing our impact on the land and rehabilitating it comprehensively where possible.

In 2013, we adopted the following five pillars to manage Quality, Health, Safety and Environment (QHSE):

1) Leadership Commitment
Our commitment towards QHSE starts at the Board level and extends across all levels in the organization. Despite the key importance of targets, deadlines and costs, we will not compromise our people’s health and safety, as well as the environment. QHSE departments within each of our subsidiaries have the authority to carry out their jobs in the manner they deem effective.

2) Focus on Controlling Major Risks
There are thousands of QHSE risks in mining operations as large and as complex as Adaro Energy. We must thus focus our limited resources on mitigating major risks. Our QHSE Team goes through every work area and identifies major risks in each and every task. They make sure that adequate controls are embedded in the working and supervision procedures to prevent accidents from taking place.

Toward this end, we have implemented the Adaro Fatality Prevention Program (AFPP) which identifies and assesses major risks in each activity. The list will serve as guidance for field inspection and evaluation, as well as to ensure the mitigation plan by the team is implemented correctly.

Since the program started in 2013, we have identified numerous QHSE risks. Among the top 10 are: faulty mobile equipment operation, explosion, energy isolation (electrical, mechanical, thermal), falling, drowning, and accidents while lifting and towing large and heavy objects.

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Adaro’s dedicated emergency response crews are regularly drilled in a wide variety of accident and casualty scenarios.

3) Workforce Education and Training
We employ thousands of people across Adaro, including in our subsidiaries and contractors, and they are all exposed to significant occupational health and safety risks. We take it as our responsibility to educate and train all members of the team on how to work in a safe and healthy manner.

New workers undergo a comprehensive safety induction class and field orientation before obtaining a permit to work in an Adaro project area. In addition, we also conduct safety induction sessions for visitors entering our operation sites.

4) Integrated QHSE Management System
In order to effectively manage QHSE in our operations, we continuously develop and implement our integrated QHSE management system throughout the organization. This system conforms to international standards such as ISO 9001, ISO 14001 and OHSAS 18001.

The implementation of the management system ensures that each and every task within Adaro’s operation is consistently performed following a standard procedure that is in line with company policies, and at the same time conforms to international standards.

During 2014, the Group’s QHSE division was able to complete the development of the integrated management system for Jasapower Indonesia (JPI) and the improvement of the mine water management system at Adaro Indonesia. We have also started implementing the integrated management system at Makmur Sejahtera Wisesa (MSW), as well as the upgrading and updating of the QHSE management system for the coal-processing and barge-loading unit of Adaro Indonesia.

In 2014, we initiated a QHSE corporate audit for Adaro Indonesia’s coal-processing and barge -loading management system. Audit findings are followed up through a corrective action plan. Besides the Adaro corporate audit, we commissioned independent audit firm SGS to carry out a surveillance audit on the same unit to maintain the certification of the management system.

Another important part of Adaro Indonesia’s QHSE management is the establishment of “Adaropedia”, a web-based information system which stores and displays HSE monitoring data and information.

5) Enforcement of QHSE Policies and Procedures
Each and every worker in Adaro and its subsidiaries must respect and follow QHSE policies and procedures. Those who contribute to QHSE beyond his or her call of duty will be recognized by the company, and those who violate QHSE rules and regulations will be disciplined accordingly. We believe that without strong enforcement, efforts to achieve better QHSE performance will not be effective.

Employee Health and Safety

The safety and wellbeing of our workers is the foundation of our operational excellence. Our commitment towards safety starts at the Board level, and extends across all levels in the organization.

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Accident and injury statistics are posted prominently at Adaro Indonesia’s mine site offices in South Kalimantan to help ensure safety is in employees’ minds at all times.

We are committed to maximizing workplace safety in all of our operations and to providing the highest standards of health programs for our employees and on-site medical facilities for the treatment of both injuries and illnesses.

Safety performance, in terms of total recordable injuries, tells a story of progressive improvement. The implementation of safety initiatives in line with the QHSE Five Pillars has helped us identify major risks and ensured that adequate controls are well embedded in the working and supervising procedures to prevent accidents from taking place.

We continue to work together with our major contractors and hold regular meetings with them and our management team to discuss QHSE issues and make strategic decisions. Since the ultimate responsibility for QHSE rests on Adaro, we insist that our contractors comply fully with our QHSE standards and procedures, and we dilligently monitor their compliance.

We use the lost-time injury frequency rate (LTIFR) as one measure of safety performance, an internationally recognized standard that measures the number of lost-time injuries per million man hours worked. A lost-time injury (LTI) is defined as an occurrence that results in an employee having to take one day/shift or more off work.

For 2014, our group-wide LTIFR and severity rate (SR) were 0.18 and 122.8, respectively. This means that there is 0.18 LTI for every one million work-hours, while an SR of 122.8 indicates the number of days lost in one million work-hours. Adaro Indonesia achieved a 56% reduction in SR from 2013.

The Ministry of Energy and Mineral Resources disclosed in its recent mine safety report that the average SR for Indonesian mining was 266.02. This shows that Adaro is performing better than most other mining companies in Indonesia in terms of safety. We are operating as one of the safer mining companies nationwide.

We will continue to target improvement in our safety performance, and renew and update our standards and procedures to try to achieve our goal of zero injuries. We are working together with the human resources department to design safety roles and responsibilities that will be part of site workers’ performance indicators.

In Case of Emergencies

As an extension of our QHSE programs, we established an Emergency Response Team in 2007 in recognition of the need for a specially trained group within our mining area at Tabalong, South Kalimantan, to provide immediate response to any type of emergency.

The emergency response team has grown to cover the hauling road, Kelanis river terminal and Taboneo offshore anchorage. In 2013, we established Emergency Response Team Stations staffed with 20 personnel each at two locations, in Wara 73 office and in Kelanis.

Each team was trained in basic life support response, first aid response and fire and rescue response. They were also provided with two ambulance units and an ERT vehicle in each station.

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