Environment Preservation

KPC’s approach to environmental management is based on identification and systematic control of all processes in our mining operation, starting from exploration, development, production, transportation, reclamation to mine closure phase.

Good Mining Practice on Environmental Aspect
Good Mining Practices which we adopt encourage KPC to run eco-friendly operation by planning and conducting end-to-end mining process carefully and responsibly in order to minimize the negative impacts to environment. KPC established an integrated management system that has always been our foundation in maintaining environmental sustainability. This environment management consists of targets and environmental programs which focus on:
• Pollution prevention
• Post-mining area restoration to a productive, stable, and safe condition
• Biodiversity conservation
• Water conservation and energy source efficiency.

KPC strives to implement preventive measures and regular monitoring in order to minimize potential contamination. Our People continues to ensure that the program, procedures and targets of environmental pollution prevention that we have set are well implemented and sustained.

1.1. Mining Water Management (MM3)
Mining activities and post-mining area rehabilitation will result in changes in the structure of rock, soil and water quality around the mining area. Mining waste materials that create acid mining water with low pH which can contaminate ground water and reduce soil fertility. To that end, we have implemented preventive measures in managing acidic rocks through the classification and separation of overburden and the design in acidimine drainage management.

1. Separation of Overburden
Acid mine drainage management starts with preventing the formation of acid mine water by covering materials that potentially form acid mine water. Main activity in this process is to conduct Net Acid Generation (NAG) analysis to identify and separate rocks that are Potential Acid Forming (PAF) from those that are Non Acid Forming (NAF), including during excavation, placement and stockpiling of overburden.

2. Mining Water Management System
Our mining water management system aims to avoid impacts of acidic rock water on the quality of nearby surface water bodies as well as on soil quality. Surface water at various coal mining and processing locations is supplied to a controller system in the form of terraced sedimentation ponds to be processed and monitored before then released to public water bodies.

We perform routine maintenance, treatment, and rehabilitation processes to each existing deposition ponds. Adding lime to the ponds to raise the pH of the water or regular ponds maintenance by using dredges are some of the methods that we also apply. Monitoring of water quality is done by taking daily samples. The sample will be analyzed in order to ensure that water quality in deposition ponds is in compliance with the Decree of the Minister of Environment No. 113/2003 and East Kalimantan Provincial Regulation No. 02/2011. If the water quality has already met the regulation, then will be released to public water bodies.

1.2. Waste Water Management
Before waste water is released by KPC to public water bodies, such as rivers or the sea, we ensure that the waste water output has met the quality standards set by the Government. All points of waste water disposal location have obtained an approval through the Decree of the Regent of East Kutai and The Decree of East Kalimantan Governor.

1.3. Management of Hazardous and Toxic Waste Materials
Hazardous and toxic waste that we manage are including used oil, hydrocarbon-contaminated goods, used oil filter, used oil hose, medical waste, hydrogen peroxide waste, used grease, batteries / used batteries, used toner, chemical waste, incinerator ash, used dry batteries, fluorescent lamp, hazardousand-toxic contaminated container, coal ash and hydrocarbon-contaminated soil.

Hazardous and toxic waste from KPC’s operations are managed in compliance to government regulations and hazardous and toxic waste management permit obtained by KPC, starting from temporary storage, recycling, internal processing, until delivery to a licensed third party for further processs. The third party should be a service provider in hazardous and toxic waste management located in Indonesia and has permission from the Ministry of Environment to conduct management of some or all types of hazardous and toxic waste from hazardous and toxic waste producers. KPC does not send hazardous and toxic waste abroad.

1.4. Non –Toxic Waste Management
Non-toxic waste that we produce includes general waste, both which can and cannot be reused, such as paper waste, used tires, plastic, used cardboards and wood pallet. General waste managed by KPC are ones that are from KPC employees housing and industrial areas. They are sent to the landfill at Hatari East dumping area.

1.5. Spill Handling
High use of diesel fuel and lubricants in KPC can potentially cause hazards and environmental impacts, caused by the spill. Therefore, we have procedures to deal with spill handling and form Oil Spill Response Team in order to have a quick response when any spill occurs. In addition, KPC ensures that oil spill kits are always available in every maintenance workshop.

Soil that has been contaminated by oil from all maintenance workshops, particularly from interceptor facilities, is processed with bioremediation treatment using Petrophylic bacteria. The process for oil-contaminated soil is conducted in Biological Treatment Unit (BTU) area at Sangatta North Dump, according to the permit obtained through the Minister of the Environment No. 184 Year of 2010 dated 11 August 2010.

1.6 Monitoring and Control of Emissions
A major source of carbon emissions in KPC’s operations is from the use of fossil fuels, which aims to support mining activities, among others: use of fuels for boilers, generators; use of fuels for operational vehicle; use of coal in power plant; as well as during land clearing for mining operations.

In reducing the impacts of emission caused by our operational equipments and vehicles, we always perform regular maintenance on the equipments and vehicales to keep the effectiveness of their combustion process. In the procurement of new equipment, such as trucks and other heavy equipment, KPC refers to the emission standards of Environmental Protection Agency (EPA) Tier-1, Tier-2 and Tier-3. Therefore, we ensure that every vehicle entering and operating in the area of KPC is in accordance with the standards and in good condition.

1.7. Air Quality Monitoring
KPC always monitord the ambient air quality, especially the dust of mining area and ashes from power plant, generators, and incinerators combustion. We use our power plant and generators as energy producers that support all activities of the Company, while we use incinerators to destroy hydrocarboncontaminated waste (filter and rags) and medical waste from the clinic.

2. Ecosystem Restoration of The Post Mining Area
Mining activities often interpreted as one of the activities that destroy nature and the environment. However, KPC has the main aim to restore the environment, flora and fauna habitat, as well as post-mining area to normal productivity. We always uphold the principle that mining activities should benefit from a positive and not a negative impact. It is not impossible that the post-mining properly reclaimed land will make the land more valuable and useful than before their mining activities. That is why, KPC reclamation strategy is projected to be able to provide added value to the environment and society.

Efforts to implement restoration projects in the KPC through mature planning and measurable design according to the document of Post-Mining Land Ecosystem Restoration of KPC formulated in 2009. This document has been developed through the Research and Development Center for Forest and Nature Conservation in collaboration with the Ministry of Environment and Forestry.

3. Maintaining Biodiversity
For KPC, maintenance of biodiversity is not only important for the balance of the ecosystem and the success of restoration program in our area. More than that, well-maintained biodiversity is a valuable heritage for future generations.

3.1. Preserving Orangutan Populations in Reclamation Area
Orangutan is one of the protected and endemic fauna in our country, Indonesia. The island of Kalimantan, especially East Kalimantan, where KPC’s operations is located, is one of the natural habitat of Orangutans. To that end, one of the main objectives of reclamation and biodiversity conservation program KPC is to preserve the habitat and population of Orangutans in our reclamation area.

4. Water Conservation and Energy Efficiency
The Indonesian government has begun to organize an energy management system in 2010, which KPC has responded to the initiative by holding an unwavering commitment to the conservation of energy, which is translated in a Policy of Occupational Safety, Health and Environment, and Sustainable Development. This policy is expected to reduce and control the usage of fossil energy, which until now is still in practice. KPC, as one of the mining companies in Indonesia, participates in the development and utilization of renewable energy resources in KPC operational area.

4.1. Utilization of Materials for Mining Operations
KPC’s mining operations are divided into two major parts, namely production, or the process of mining, and dirty coal washing process. The main material we use in the process of coal production is explosives, while the main materials in the process of dirty coal washing are magnetite, flocculants, and lime.

4.2. Wise Water Consumption
At our mining operations, we use water to wash the coal. The water we use is rainwater, water from post-mining area, and the recycled water from the washing of the coal process itself. This is a concrete step that we take to ensure ongoing supply of clean water for the surrounding communities.

KPC does not take new water sources in carrying out activities related to coal production activities. We can report that by the end of 2015, we received no complaints from the public related to the decrease in the quantity of river water or ground water due to KPC’s water consumption. In addition to the use of water for washing coal, we consume clean water and drinking water for personal purposes of KPC employees.

4.3. Water Management System
KPC strives to always ensure maintenance of the settlintg pond to retain optimum capacity of the pool. In peparing the new settling pond, it is based on 2 pool designs, which are for flood retention and as a settling pond. This system becomes a solution to control the flow rate of water so that even during high rainfall water can optimally neutralize and materials can easily settle. Meanwhile, existing settling ponds have the on-off pipe that is placed lower than the spill way and normally used during good water quality, to retain pool capacity during high rainfall. KPC also performs an analysis on the characteristics of sediment to determine the dimension of the pool that is needed in order that the quality of water outflowed back to the water bodies can be determined according to the settling pond design planning.

4.4. Konsumsi & Konservasi Energi
Energy is required for us to run the entire operational activities. Realizing the magnitude scale of our needs for energy, we prioritize the initiative for energy conservation and utilization of renewable energy sources.

4.5. An Effort for Energy Efficiency and Usage of Environmentally-Friendly Alternative Energy

4.5.1. Power Savings
Since 2010, we have initiated a power saving program aimed at reducing the unnecessary use of electricity. This program has made a very positive impact related to energy savings. The activities we do to achieve energy savings include:
• Installation of KWH meters in offices and factories
• Installation of switches with light sensor at the plant sites that receive more sunlight during the day
• Installation of air conditioning timer in offices
• Implementation of SOP to turn off all electrical appliances when not in use
• The use of energy saving lamps
• Reduction in the amount of unnecessary light in the parking area
• Incorporate save energy program as the design criteria in KPC equipment procurement
• Replace Window Air Conditioners with Split system
• Revision of KPC Environmental Improvement Program to include the energy-saving program

4.5.2. Fuel Saving
We have initiated a fuel efficiency program since 2008. KPC assigned a dedicated team in identifying the cause of inefficient fuel consumption and implement various improvements in areas, namely:
• Providing information on procedures (SOP) to turn off the engine in unproductive condition and to keep the match factor (balance) of truck-shovel during optimum operations;
• Reviewing the optimal range of match factor against the option to turn off shovel when not in use or turn off the truck when stopping for a long time;
• Installing special lamps in trucks to monitor whether the operator has completely shut down the engine when the truck in standby position

4.5.3. Use of Overland Conveyor (OLC) as Coal Transportation Alternatives
We are also committed in enhancing the efficiency of coal transportation. KPC has installed Over Land Conveyor (OLC) to replace dump trucks that consume relatively more fuel, due to back-and-forth coal transport activities. The first OLC installation connects Melawan Pit and crusher area, while the second OLC connects crusher area and Tanjung Bara Coal Terminal. OLC TBCT has currently been completed with track that spans along 13 km. OLC also plays an important role in helping us to save the consumption of diesel fuel during the transportation of coal.

4.5.4. Utilization of Biodiesel as Diesel Fuel Mixture
In accordance with the Regulation of the Minister of Energy and Mineral number 41 in 2018, KPC is committed to gradually use biodiesel as a fuel mixture to diesel fuel. By mixing biodiesel, the use of regular diesel in operational activities can be reduced.