Environmental management is a critical component of PT. KPC’s mining operations, both before, during, and after mining. From exploration to development, production, transportation, reclamation, and mine closure, we systematically identify and control critical environmental aspects throughout the mining process.
We are committed to adhering to all applicable environmental regulations; top management’s commitment is stated in the KPLKPB and PKB Policies (Mining Safety, Environment, Security, Sustainable Development and Business Performance Improvement). Commitments to environmental management center on:
1. Pollution Prevention
2. Returning the mine to a safe, stable and productive condition
3. Preserving Biodiversity
4. Water and energy conservation
5. Mitigation of climate change
In realizing this environmental commitment, KPC continues to make the best efforts to improve environmental performance in a sustainable manner. We ensure that every KPC employee is consistent in carrying out environmental management; every environmental management is planned, implemented, evaluated and followed up properly. To ensure the continuous improvement of environmental performance, KPC has implemented the ISO 14001 Environmental Management System since 2004.
We continue to strive to develop best practice standards so that environmental performance continues to improve in a sustainable manner. It is hoped that the best work practices for environmental management that we carry out can also contribute ideas and examples for mining environmental management in Indonesia. Some of our best work practices include: settling ponds with two pool configurations, namely storage detention ponds (flood control) and labyrinthine-shaped settling ponds, use of FABA as a cover, use of used oil for blasting with a 100% composition, utilization of HD tires as drop structures etc.
As for the commitment of top management, we can describe it as follows:
Our primary goal is to prevent pollution; mining operations have a high potential for pollution if not properly managed. Our pollution prevention efforts are focused on three areas: water pollution control, air pollution control, and pollution caused by hazardous and toxic waste (B3 Waste).
1. Water Pollution Management
We ensure that all wastewater generated by our activities is not released into the environment except through government-approved compliance points. The water discharged through the compliance point is monitored and reported to the government on a regular basis. KPC constructs water treatment plants for mine wastewater, port wastewater, and domestic wastewater.
1.1. Mine Waste Water Quality
1.1.1. Pool with Flood Control System and Labyrinth
A typical open pit mine in the equatorial area with very high rainfall intensity and a large catchment area is a challenge for water quality management. A large water discharge will have a major impact on the quality of the mine’s output water. Since 2015, KPC has succeeded in developing a settling pond planning strategy with two pond configurations, namely a detention storage pond (flood control) and a labyrinth-shaped settling pond. This system is a solution in controlling discharge so that water can still be managed effectively even during high rainfall. In addition, with the flow that has been controlled and exits through a dedicated outflow, the process of neutralization and deposition of mine water can take place optimally in a sedimentation pond in the form of a maze. With this system, water quality can be maintained in compliance with all conditions, besides pool maintenance can be done more easily in the existing labyrinth.
1.1.2. Acid Mine Water Prevention and Control
The release of acid mine drainage into the environment will have a negative impact on the environment, especially receiving water bodies. Efforts to prevent the formation of acid mine drainage have been KPC’s concern since the beginning of mining. Efforts to prevent the formation of acid mine drainage begin with identifying potentially acidic rock types, selective dumping strategies to separate acidic (PAF) and non-acidic (NAF) rocks and dump cover strategies. According to the reclamation specification manual, KPC currently has 4 (four) dump cover strategies or to cover acid rock to stabilize it and prevent acid mine drainage from forming. In some conditions the formation of acid mine drainage is unavoidable because of the on-going mining process, under these conditions acid mine water will be treated with quicklime and only released into the receiving water body when it is neutral.
1.2. Port Area Water Quality
Wastewater in the port area is generated by coal stockpile activities, Steam Power Plants (PLTU), and temporary coal ash storage areas (FABA). A settling pond manages wastewater from the coal stockpile and FABA TPS, while a waste water treatment plant facility manages waste from the power station. Wastewater discharged into the environment is guaranteed to meet quality standards and is only discharged through government-approved compliance points.
1.3. Domestic Liquid Waste Management
Domestic waste has been our concern since the beginning of our operation. Domestic waste management facilities or what we call the Sewage Treatment Plan (STP) have been built since 1995 using activated sludge technology. This STP is still functioning well to date with good performance and compliance with the provisions stipulated in the Regulation of the Minister of Environment and Forestry Number P.68/Menlhk/Setjen/Kum.1/8/2016 concerning Domestic Wastewater Quality Standards. There are 11 STPs scattered in KPC housing and offices, with these facilities the Company is able to reduce the burden of domestic waste which is generally a major problem in urban areas.
2. Air Pollution Management
The potential for air pollution in mining activities comes from excavation, overburden transportation, overburden stockpiling, coal mining, coal transportation and coal processing. In addition, the potential for pollution comes from the release of emissions from movable and immovable sources and vibrations due to blasting activities.
2.1. Management of Potential Dust Pollution
Dust pollution can be a problem in open-pit mining areas with large openings. We make the following efforts to ensure that the potential for dust pollution is properly controlled:
• Water and dust binder are used for watering on mine roads. The addition of this mixture is useful for increasing the binding capacity of dust when compared to ordinary water watering, so that the time required for dust to return after watering is quite long, increasing the effectiveness of watering.
• Mechanical and non-mechanical controls are used to manage dust sources in coal processing in the CPP (Coal Processing Plant) area. Mechanical control is a preventive step performed prior to the emergence of dust from coal during the processing stage. This step is accomplished by using the following tools: Dust Deflector, Chute, Curtain, and Skirt. Non-mechanical controls, such as water fogging, water spraying, and watering with a dust binder, are used to supplement mechanical controls.
We use mine waste water whose quality has met quality standards as a source of water for dust control. We do not use river or ground water when we use mine waste water, so we do not deplete the community’s source of raw water. Furthermore, we plant trees in industrial areas to prevent dust from spreading to the nearby social environment if dust still escapes after the source has been controlled.
2.2. Management of Potential Pollution Emissions
The primary source of carbon emissions in KPC’s operational activities is the use of fossil fuels. The use of diesel fuel for boilers and generators, the use of diesel fuel for operational vehicles and mining operational equipment, and the use of coal for PLTU are all emission sources.
Monitoring of emissions generated from movable and immovable sources in our mining activities is carried out and reported periodically according to regulations. This is one of KPC’s efforts in preserving the environment, especially the air quality aspect.
To ensure gas emissions in mining operational equipment and operational vehicles always meet quality standards, we always carry out periodic maintenance to maintain the effectiveness of the combustion process. In procuring new equipment such as trucks and other heavy equipment, KPC refers to the Environmental Protection Agency (EPA) Tier1, Tier 2, and Tier-3 emission standards. So we ensure that every vehicle and equipment operating in the KPC area is suitable and suitable for use.
Since 2017, KPC has issued an Air Pollution Reduction Policy which is a derivative of the previous HSES Policy, in which commitments, efforts and Air Pollution Reduction targets are written in more detail. In the revised Air Pollution Reduction policy in 2021 it is stipulated that KPC is committed to:
• Reducing Conventional Air Pollutant Emissions parameters:
– SO2 of 300,00 Tons/year
– NOx of 20,66 Tons/year
– CO of 11,67 Tons/year
• Reducing Greenhouse Gas Emissions by 1,236,430,10 Tons CO2 Eq/Year
2.3. Management of Potential Noise and Vibration Pollution
Noise and vibration are two types of air pollution. This is, of course, our primary concern. Some of the things we do to reduce noise and vibration are as follows: Planting green barriers around the Overland Conveyor, limiting dump truck speed to 60 km/h, and blasting in a controlled manner in accordance with blasting methods and techniques outlined in PT KPC’s blasting SOP.
3. Management of Hazardous and Toxic Waste (B3) and Hydrocarbon
3.1. Management of Hazardous and Toxic Waste (B3 Waste)
Hazardous waste from KPC’s operational activities is managed in accordance with government regulations, starting from the procedures for temporary storage, utilization, internal processing, until it is sent to a licensed third party for further management. The licensed third party in question is a hazardous waste manager who is in Indonesia and already has a permit from the Ministry of Environment and Forestry (KLHK) to manage some or all types of hazardous waste from hazardous waste producers. KPC does not send hazardous waste abroad. In this hazardous waste management, KPC enforces a one-stop-shop policy in which all hazardous waste produced by KPC and contractors must be managed through a system that has been prepared by KPC.
We have 2 hazardous waste treatment units that have received government approval, namely thermal processing of hazardous waste using an incinerator and biological treatment for WWTP sludge contaminated with oil. This facility is to support us to continue to comply with hazardous waste management.
We were the first to use used oil as a blasting auxiliary fuel. KPC’s work practice in utilizing used oil was used as a reference for developing SNI 7642:2010 concerning Procedures for Utilizing Used Oil for an 80:20 mixture of Ammonium Nitrate and Fuel Oil in Open Mines. According to the utilization permit obtained from the Ministry of Environment and Forestry, we were once again a pioneer in increasing the use of used oil to a composition of 100 % in 2017.
Furthermore, we are a pioneer in the use of FABA as an acid layer cover in mine reclamation activities. In 2017, we were granted permission to conduct a field-scale trial, and in 2019, we were granted a use permit. This utilization option is a new breakthrough in FABA management that can absorb large amounts of FABA in a sustainable manner. This is expected to be a contribution of thought that can be used as a solution option for Indonesia’s FABA problem. With the issuance of PP 22 of 2021, in which FABA is no longer classified as B3 waste but is instead classified as registered Non B3 waste, the option of using FABA as a cover remains an effective solution for handling FABA in large and sustainable quantities.
3.2. Hydrocarbon Spill Handling
The high use of diesel fuel and oil at KPC increases the likelihood of spills. As a result, we have an Oil Spill Response Team and procedures for dealing with hydrocarbon spills on both land and water to ensure that if a spill occurs, it is dealt with as soon as possible. Furthermore, KPC ensures that oil spill kits are always available in any work unit where there is a risk of a hydrocarbon spill, such as workshops and fuel stations. KPC has an oil response truck equipped with all of the necessary equipment to handle spills on land. Oil Spill Equipment (oil booms and skimmers) and deployment stations are also available at the Lubuk Tutung and Tanjung Bara ports for hydrocarbon emergency response needs.
Restore the Mining Area to be Stable, Safe and Productive
The most important aspect of mining environment management is restoring ex-mining areas to a safe, stable, and productive state. Correct mine reclamation in accordance with its designation is critical to restoring a safe, stable, and productive environment. KPC’s commitment in this regard is to carry out reclamation activities in stages. Since 2014, KPC has always reclaimed more than 1000 ha per year.
Several important factors must be considered during this reclamation activity, namely:
1. Land Use
The land reclamation arrangement begins with the activities of piling up the PAF rock cover layer, forming embankment slopes, regulating water management, namely the construction of drainage channels, erosion control buildings, and root zone soil spreading. Quality assurance and quality control processes are carried out through inspection and audit processes to ensure the quality of work. Land management inspections and audits are performed when the following conditions exist:
a. Land clearing and soil extraction activities for the root zone (soil);
b. Finalization of overburden stockpiling activities, specifically to assess the construction performance of the PAF rock cover layer; and
c. The reclamation land’s final construction activities, which include embankment slope formation, drainage channel construction, erosion control buildings, and root zone soil expanse. The supervisory team closely monitored the construction process to ensure that the work adhered to the DDR (Dump, Drainage, and Rehabilitation) design that had been approved by the Pit Department Manager (planner), Mine Planning Manager (appraiser), Environmental Manager (appraiser), and custodian/contractor (implementer).
The plant species planted in the reclamation area are chosen based on their designated land cover function. Planting of KPC reclamation areas is divided into four categories, according to Minister of Energy and Mineral Resources Decree No. 1827/K/30/MEM/2018: cover crops, fast growing plants (pioneers), local plants, and fruit trees. Plant seeds were developed independently by KPC in the nursery area and were also obtained from local communities under KPC’s supervision. Every month, the number of seedlings developed and planted is monitored to ensure that seeds are available throughout the year. The total number of seeds purchased in 2021 is 1,319,536 seeds, with 1,103,359 of them planted in 2021.
3. Final Completion
All maintenance activities in 2021 will be carried out on reclamation areas in the form of revegetation, aimed at freeing plants from nuisance weeds, spurring plant growth by fertilizing and replacing dead plants with new ones. The first maintenance is carried out when the plants are 5-6 months old by cleaning weeds and replanting on dead plants. The second maintenance is at the age of 10-12 months by weeding and fertilizing. During 2021, the maintenance of 2,983.99 ha of reclamation plants has been carried out covering maintenance periods 1 and 2. We believe that through reclamation and good mine management, post-mining land can provide added value and great potential for community sustainability.
To ensure that reclamation is carried out consistently, KPC has developed a Reclamation Specification Book and continues to be updated according to regulatory developments and best work practices. This Reclamation Specification Criteria is in line with the mine reclamation provisions as regulated in ESDM Ministerial Decree no. 1827/2018, annex VI matrix XVI.
Biodiversity is an important indicator of mine reclamation success. We are committed to preserving biodiversity, including by establishing conservation areas within mining concessions, such as the 163.60 ha Brackish Park Conservation Area, which was a reclamation area in 1998. In addition to the brackish garden, we protect the Murung and Swarga Bara Arboretum Conservation Areas, the Pinang Dome Conservation Area, and the Tanjung Bara Mangrove Conservation Area.
In order to maintain the utilization of biological natural resources and their ecosystems in the best possible way, always maintained and able to achieve balance, KPC establishes a policy for maintaining biodiversity. This policy is devoted to the aspect of biodiversity where one of the commitments is to establish a biodiversity conservation area as an area to protect the diversity of plants, animals, and certain ecosystems within it. This area is enriched with species of nesting plants and animal feed, such as Shorea leprosula, Vitex pubescen-, Shorea seminis, Gmelina arborea, Anthocephalus sinensis, Syzygium sp, and Ficus sp. With this effort, quite a number of animals have returned to the reclamation area, for example, the sambar deer (Rusa unicolor), the muntjac deer (Muntiacus muntjak), the big porcupine (Hystrix brachyura), orangutan (Pongo pygmaeus morio), coconut squirrel (Callosciurus notatus), the hummingbird, napu (Tragulus napu), and painted squirrel (Tupaia picta). This is certainly an important indication of the success of KPC’s reclamation.
In 2021 KPC cooperates with consultants to carry out periodic monitoring activities on the presence of animals in the KPC reclamation area. One of the interesting things from the monitoring results is that the Orangutan (Pongo pygmaeus morio) which is a protected rare animal is present in all monitoring areas. Orangutans are found either in person, by camera traps or by identifying their nests. In addition, the individuals found consisted of children, adult females, juveniles and adult males. This shows that the Orangutan (Pongo pygmaeus morio) reproduces and adapts to the post-mining reclamation area.
Aside from orangutans, the Tanjung Bara Mangrove Conservation Area also has a proboscis monkey, which is a protected rare animal. Tanjung Bara mangrove conservation is located on a coastal area of 382.92 ha that stretches along the shorelines of Aquatic and Tanjung Bara for 9,571.94 m. According to third-party research, the carrying capacity of the mangrove conservation area as a Nasalis larvatus habitat is good because the area can provide space for shelter, foraging for food, and shelter for at least two groups of Nasalis larvatus totaling 50 individuals. The Proboscis Monkey and the white-bellied kangkareng are two of the area’s mascots. This area is inhabited by no less than 19 birds and ± 48 other bird species so that it has become the daily view of employees and company guests to enjoy the charm of this conservation area.
In protecting this area, we coordinate and cooperate with the Kutai National Park Center (BTNK), the Natural Resources Conservation Center (BKSDA), the Forest Research and Development Center (Puslitbanghut), the Ecology and Conservation Center for Tropical Studies (Ecositrop), the College of Sciences Agriculture (STIPER) and the Wehea Protection Forest Customary Institution. This collaboration is related to research and development, area protection, community empowerment, ecosystem restoration and natural tourism development. It is hoped that the management of conservation areas can be in line with national programs so that they become more efficient and effective.
Water Conservation and Energy Efficiency
We recognize that water is a basic human need that must be preserved in order to be used. The KPLKPB & PKB Policy document expresses our commitment to water conservation (Mining Safety, Environment, Security, Sustainable Development and Business Performance Improvement). Our commitment to water conservation is consistent with the water conservation policy, which is also mandated in article 24 of Water Resources Law 17/2019.
The primary effort we make to maintain the presence and availability of water, or the quantity of water in accordance with its functions and benefits (water preservation), is to carry out progressive reclamation. Furthermore, by using a settling pond with two pond configurations, namely a storage detention pond (flood control) and a labyrinth-shaped settling pond, we ensure that every wastewater we discharge meets the quality standards in every condition, allowing downstream communities to always use the output water.
We use run-off water collected in the ex-mining lake when consuming water to support production, such as coal washing, cleaning workshops/facilities, and dust control. We don’t take water from rivers or ground water with this effort, so we don’t reduce the amount of water available to the community. We also campaign to save water in all conditions when it comes to the use of water in offices and workshops. By implementing various programs, we were able to save approximately 7 million m3 by 2020.
On the other hand, we are also very concerned about energy efficiency; we need energy to carry out all operational activities. Seeing the huge need for energy, we prioritize energy conservation programs and the use of renewable energy sources.
Since 2008, we have initiated a fuel saving program. KPC assigned a special team to identify the causes of wastage and implement improvements systematically to control fuel wastage. This program is continuously updated from time to time. In 2020 we have perfected this program by digitizing the controls so that our monitors are better. From our various energy saving programs, in 2020 we managed to save around 2.8 million GJ.
In terms of other cost-cutting measures, we have had an electricity-saving program in place since 2010. This program has resulted in significant energy savings. Among the tasks we perform are the following: installing switches equipped with light sensors, Installing AC timers in offices, SOPs for turning off all electrical equipment when not in use, using energy-saving lamps, installing solar panels in multiple locations, reducing the number of excess lights, incorporating energy saving as equipment design criteria at KPC, revising KPC’s environmental improvement program to include energy saving programs.
Since 2017, KPC has issued an Energy Policy which is a derivative of the previous HSES Policy, where commitments, efforts and Energy Efficiency targets are written in more detail. In the revised 2021 Energy Efficiency policy, it is stipulated that KPC is committed to energy efficiency of 3,300,000 GJ per year.
Our commitment to using renewable energy is carried out by using B30 biodiesel in all areas of our operations. By 2020 we will use energy from biodiesel equivalent to nearly 8 million GJ.
Climate Change Mitigation
Climate change has become a major concern for many people all over the world. As a result, we have made several efforts to reduce the release of emissions into the atmosphere, which are the primary contributors to global warming. As previously stated, one important effort that we make is to make various efforts to reduce fuel consumption.
In addition to efforts to reduce carbon emissions by saving fuel, we also make other efforts to support climate change mitigation, such as gradually replacing R22 refrigerant with environmentally friendly refrigerant, including requiring that all new air conditioners use environmentally friendly refrigerants, calculating emission baselines, and adjusting efforts based on the results of the baseline calculation. In addition, we perform a Life Cycle Assessment (LCA) to investigate the life cycle of our process activities.