MIND ID Group Committed to Support Emission Reduction Target

Jakarta, 14 December 2021 – MIND ID or Mining Industry Indonesia, the Holding State-Owned Enterprise for the Mining Industry, with members PT ANTAM Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Inalum (Persero) and PT Timah Tbk, is committed to reduce emission from the energy sector and Industrial Process and Product Uses (IPPU) of 15.8% in 2030 and support the zero net aspiration of the Indonesian Government in 2060.

Director of Institutional Relations, Dany Amrun Ichdan, said that “MIND ID’s commitment towards sustainability is a manifestation of its Noble Purpose, namely, “we explore natural resources for civilization, prosperity and a brighter future” as stipulated in its Sustainability Strategy.  The Sustainability Pathway is the foundation for MIND ID in managing ESG (Environmental, Social, Governance) performance based on national regulations and international standards, namely the ISO 26000 and ICMM (International Council on Mining and Metals).  The decarbonization program is an embodiment of one of the Sustainability Pathway, which is Environment and Climate Change.”

The MIND ID Group posted emission produced by the Company as coming from two scopes.  In 2019, the first scope is the use of fossil fuel (coal and marine fuel oil) for processing, and diesel fuel for project vehicles and heavy equipment, producing a total of 2.8 tons of CO₂e greenhouse gas emissions. The second scope is the use of electricity from the PLN (State Electricity Company) grid for operations and production, recorded at 0.1 million ton CO₂e.

As a manifestation of its commitment to achieve the greenhouse gas emission reduction target, starting 2021 and for the future, the MIND ID Group has identified commitment initiatives to reduce emission, among which is the plan for the transition from marine fuel oil (MFO) to LNG, initiated by PT ANTAM Tbk and PT Timah Tbk, to reduce greenhouse gas emissions of a total of 121,700 tCO₂e/year.  While the carbon offset (natural based solution) implemented by PT Bukit Asam and PT Timah Tbk enables the reduction of a total 470,807 tCO₂e/year in greenhouse gas emission.

Another program is the development of PT Bukit Asam Tbk’s coal handling facility for the railroad station loading, which will enable the reduction of 21,000 tCO₂e/year in greenhouse gas emission, and the implementation of electrical bus which can reduce 100 tCO₂e/year in greenhouse gas emission. While PT INALUM (Persero) develops the CPC and alumina refinery unit in close proximity to the Company.  This will enable the reduction of 8,011 tCO₂e/year in greenhouse gas emission, including exploring the step-out opportunity, by encouraging the development of new port reduction design currently to promote efficiency, which will enable the reduction of 12,873 tCO₂e/year in greenhouse gas emission.

Aside from the above efforts, the initiative in the use of renewable energy, the Solar PV, for electricity, is currently being developed by the MIND ID Group.  The MIND ID Group is also exploring Electrification, Carbon Capture (CCUS) and mining lithium carbonate for batteries to support electrical vehicles.

MIND ID Group’s emission reduction activities constitute the sustainability efforts of the Company conducted in the past three years (2018-2021).  Each MIND ID Member has developed and implemented various decarbonization initiatives from production to operations. At the Pongkor underground gold mine, PT ANTAM Tbk has changed the mining method from Fishbone and Upperhole series to Fishbone and Upperhole on a parallel basis.  This initiative has been implemented since 2020 and was able to reduce emission by 571 Tons CO₂eq/year.

While PT Bukit Asam Tbk has changed the coal handling system which can save solar fuel consumption of 2,207,016 liters per year or Rp17.8 billion per year.  The Bucket Wheel Excavator (BWS) is now replacing the conventional method of using the dump truck and excavator.

At PT INALUM (Persero), the pot optimization system and operational control have been adopted at the smelting plant to reduce the anode effect triggered when the low alumina concentrate in the electrolyte raises resistance in the pot, causing instability and reducing aluminum production.  The computerized control for pot operations which has been implemented since 2020, managed to reduce 49,926 tCO₂e/year in greenhouse gas emission.

While PT Timah Tbk initiated the Carbon Offset (Natural Based Solution) in 2020 by conducting reclamation programs in 561 hectares of former mined lands and planting 154,130 trees, including oil palm, sangon and fruit-bearing trees.  This has succeeded in reducing 70,339 tCO₂e/year in greenhouse gas emission.