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In the social sector, over our 50 years in Indonesia, PT Vale has continuously refined its sustainable development programs.

In 2013 PT Vale introduced an Integrated Community Development Program (PTPM) related to its corporate social responsibility (CSR).

The PTPM planning and implementation was aligned with the East Luwu Regency Government development plan, to become long-term in nature with a five-year road map. The company involved local governments and communities so that community development activities carried out did not overlap.

PT Vale is strongly committed to implement sustainable mining operations

Since it’s first operation, PT Vale have built the smelter and never exporting ore.

Starting from its first nickel in matte export in 1978, the production rate has continued to grow over time.

The highest production volume of 81,777 tons was achieved in 2015, and for 2020 PT Vale targets its annual production volume to be 90,000 tons..

In fact, the Company makes a significant contribution to Indonesia, and every year we pay taxes and non-tax state revenues (PNBP).

After the work contract amendment in 2014, PT Vale increased its annual production contributions (royalties) from 0.9% to 2%, with an option to increase to 3% when nickel prices reach US$21,000 per Ton.

Taxes and PNBP payments in 2018 amounted to US$91.87 million, up 46% compared to 2017.

In applying its good corporate governance (GCG), PT Vale continues to refine the approval process when dealing with government officials and third parties.

In 2015, the Company released the PT Vale Manual and a year later applying the Supplier Code of Ethic along with procurement technology information (e-procurement).

PT Vale also has the Vale Whistleblower Channel (VWC), providing access for all parties to submit violation reports.

When starting operations in 1968, most of the workers were not residents of Sorowako, nor the surrounding area and some were foreign nationals (WNA).

This was down to the limitations of human resources (HR) in Indonesia at that time. At the same time, mining and ore processing activities required expert workers.

Over time, PT Vale provided assistance to improve education and training for the residents of Sorowako and its surroundings, resulting in more local workers being recruited. PT Vale also recruited workers from all over Indonesia.

Now after 50 years, most of PT Vale's workers are residents from Sorowako and its surroundings and other regions throughout Indonesia.

In the process of recruiting and selecting prospective employees, PT Vale ensures there is no enforced labor and child labor.

Based on Human Rights Policy No. POL-0005-G, PT Vale ensures that there is no discrimination done and provides a fair work environment for every employee.

At the end of 2018 PT Vale employed 3,092 people, consisting of 3,085 permanent employees and 7 contract employees.

3,087 employees, or 99.84%, are Indonesian citizens and 5, or 0.16%, are foreigners.

PT Vale operates an integrated mining and nickel processing in Sorowako, South Sulawesi, Indonesia. Sustainability is our mandatory in carrying out business activities, in line with our value: prize our planet.

PT Vale integrates land reclamation, revegetation and rehabilitation activities into the mining process. There are around 100 hectares of land rehabilitated every year. The open land area is limited to around 1,000 hectares, which complies to the Government regulations.

For 5 decades, PT Vale operates in Indonesia. Our operation area in Sorowako is surrounded by beautiful lakes with crystal clear water which are carefully preserved to this day.

For environmental management, since the very beginning, PT Vale has been committed to implementing efficient and environmentally sound operations.

Strategic steps were taken to operate hydroelectric power plants (PLTA) to satisfy the electricity needs for the production process and supporting activities.

PT Vale now operates three hydroelectric power plant units, starting with the Larona Hydroelectric Power Plant in 1979, followed by the Balambano Hydroelectric Power Plant in 1999 and the Karebbe Hydroelectric Power Plant in 2011. The total electricity produced now reaches 365 MW.

PT Vale is committed to carrying out sustainable mining practices, by continuously improving its environmental management performance.

PT Vale also started using biodiesel in 2017. Biodiesel is an alternative fuel resulting from the mixing of diesel fuel with biofuel, to form a Fatty Acid Methyl Ester (FAME), with a concentration of 15%. Biodiesel is used for PT Vale's light vehicles.

The total volume of biodiesel used during 2018 reached 79.1 million liters, an increase of 4.2 million liters, or 106% compared to 74.8 million liters in 2017.

Before being released into the water bodies including Lake Matano, PT Vale monitors the processed liquid waste quality at compliance points that have been approved by the Government.

PT Vale's commitment to managing the environment is also realized by providing environmental costs. In 2018 these costs reached US$6.4 million.