Press Release

Consistency of Vale Indonesia in Sustainable Program and Good Mining Practice

3 June 2022

Jakarta, 3 June 2022 – MIND ID or Mining Industry Indonesia, the Holding State-Owned Enterprise for the Mining Industry, with members PT Aneka Tambang Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Inalum (Persero) dan PT Timah Tbk, supports the plan to revise the Contract of Work status of PT Vale Indonesia Tbk (PTVI) to Special Mining Business Permit (IUPK).  This plan will strengthen the synergy between MIND ID and PTVI in accelerating the added value of Indonesia’s nickel commodity in future.

MIND ID Director of Institutional Relations, Dany Amrul Ichdan, said that “Currently, MIND ID owns 20% stake in PTVI. MIND ID concludes the transaction to purchase PTVI shares on 7 October 2020.  This initiative is part of MIND ID’s efforts in the context of managing Indonesia’s strategic resources and expands its portfolio as well as the downstreaming of the Company’s nickel commodity.”

PTVI posted positive performance in Quarter 1/2022, recording net profit of US$ 67.7 million, 100.77% year on year growth compared to the same period the year before of US$33.7 million. In Quarter 1/2022, PTVI posting revenue of US$ 235.08 million or a growth of 13.8% compared to USS$ 206.6 million in Quarter 1/2021. The optimal performance of PTVI also contributes to shareholders and stakeholders.

PT Vale Indonesia Tbk President Director, Febriany Eddy, said that “PTVI continues to be commitment to implement good governance and good operational practice.  Commitment of the Company towards environment, social and governance (ESG) is also demonstrated with the compliance to the principles of ICMM (International Council on Mining and Metals).

PTVI has sizeable nickel reserves and has conducted the downstreaming of the nickel business in Sorowako, South Sulawesi.  PTVI is also in the process of initiating the nickel downstreaming development project in Bahodopi and Pomalaa, Southeast Sulawesi.

PTVI’s sustainable commitment is shown with the Company’s declaration to the commitment to achieve Net Zero Emission from scope 1 and scope 2 in 2050, or earlier, in line with the ambition of the Paris Agreement.

PTVI continues its commitment to employ local manpower as added value to the existence of the Company for the communities in the surrounding operational areas.  To date, PTVI has employed 2,966 employees, 86.6 percent of whom come from Luwu Timur, and 99.7 percent of those working for the Company, from Indonesia.

PTVI conducts community development programs by setting forth 3 pillars of partnerships, namely, Government, Community and Company. “The Masterplan for the Community Development and Empowerment (RIPPM) program adopts three schemes, namely Development of the Independent Rural Area Development (PKPM), Strategic Partnership and Strategic Contribution,” said Febriany.

The PKPM programs developed by the Company encompass 10 areas with a minimum target of 7 consolidations, 2 independent and 1 competitive, 10 Inter-village Cooperation Agency (BKAD), creation of 6 Bumdesma or Joint Village-owned Enterprises and 4 Agriculture Centers, agriculture production facilities, formation of 2 tourism villages, as well as the conservation of coastal areas.

PTVI and the Provincial Government have also agreed to support the agri-business and tourism industries.  This was solidified with the transfer of Sorowako Airport to the Government with the aim of empowering the local economy, specifically tourism.

In the environment sector, PTVI actively protects the quality of water at the Malili Lake complex, close to the mining area.  The Malili Lake Complex consists of three lakes in Malili, Luwu Timur Regency, South Sulawesi, namely Matano Lake, Mahalona Lake and Towuti Lake.

PTVI also conducts progressive reclamation of former mining areas.  The target is the reclamation of 70% of former mining areas in 2025. The Company also focuses on planting trees, 3.7 million already planted with Ebony (Diospyros celebica), Dengen (Dillenia serata), Kaloju (Caralia braciata), Mata kucing (Hopea celebica) endemic trees and superior local varieties. PTVI’s total rehabilitation program covers 10,280 hectares, 10,000 hectares of which are outside the operational areas and 280 hectares in operational areas.

For more information, please contact:

Niko Chandra

Kepala Divisi Institutional Relations
PT Inalum (Persero) Holding Industri Pertambangan

Email: niko.chandra@mind.id

www.mind.id

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