PT Vale Indonesia Tbk Sustainability Report

About Vale

PT Vale Indonesia Tbk Sustainability Report

Emerge Stronger, Sustainably

Emerge Stronger,
Sustainably

Emerge Stronger, Sustainably is the theme of Sustainability Report 2016, connecting the previous theme of our ‘unwavering commitment’ to maintaining the sustainability. With very dynamic business situations, Vale will further improve efficiency and continue to maintain sustainability in economic, social and environmental aspects that enable us to grow stronger in facing any challenges. We will strive to be a leader of sustainability in the nickel industry, by engaging our stakeholders, including the communities in which the Company operates. The initiatives that support sustainable development have also become part of our determination in playing a role in the achievement of goals.

PT Vale Indonesia Tbk., or PT Vale, defines ‘sustainability’ as the creation of more value for all stakeholders, through the performance of economic, social, and environmental excellence.

For life

Maintaining Economic Resilience

The fall in nickel in matte production and nickel prices that had not recovered in the world market, affected the financial performance of PT Vale throughout 2016. The condition was addressed by applying efficiency to reduce cost of production. Simultaneously, the Company also monitored expenditures to maintain the availability of cash.

Contribution to the State

81,002.42

Thousand USD Contribution to the State

Nickel Production

77,581

Metric Tons Nickel Production

Net Profit

1,906

Thousand USD Net Profit

Total Revenue

586,045

Thousand USD Total Revenue

Improving Efficiency

PT Vale’s achievements in 2016 were attributed by efficiency policy that continued to be implemented. PT Vale efficiency policies have the support of the employees and departments/ work functions. They continue to develop initiatives and findings to contribute in reducing production costs and expenses.

Production Cost  

Value Chain Sustainability

Flow of PT Vale’s supply chain includes exploration, mining, and processing of nickel ore into nickel in matte product that is exported under sale agreement to Vale Canada Limited and Sumitomo Metal Mining Co.Ltd. In the stages of operation and production, the Company cooperates with suppliers and contractors, and put them in supply chain management (SCM).

In line with its strategy to contribute to the economic development in the area of operations, PT Vale prioritizes the use of local products through the involvement of local suppliers in the supply chain. The approach is undertaken through Promote National Interest (PNI) program, which is a commitment to increasing the portion of domestic content level (DCL).

Proportion of Goods Supplier Engagement  

For work

Occupational Safety Accountability

Occupational Health and Safety is an important aspect for the Company due to its high risk operating characteristics. Employees are one of the most important partners, therefore the Company keeps striving towards zero harm. During 2016, zero fatality has been achieved and in accordance with the target, but the loss of working days due to illness remained to be improved.

Some of the steps are to evaluate OHS best practices and put it in the:

  • Collective Labor Agreement (CLA)
  • Revised Major Hazard Standard (MHS)
  • Golden Rules
  • Serious and Fatal Incident Prevention Program

Other efforts undertaken by PT Vale to increase the accountability of occupational and behavioral safety:

  • Activation of EHS Competency Management System (CMS)
  • Application of Mining Safety Management System (SMKP)
Rate and Number of Workplace Accidents  

Moving Together in Diversity

The Company guarantees equal opportunity in career for all employees, regardless of gender, ethnicity, religion, and race. The Company prioritizes job creation for local residents. This was reflected by the proportion of local employees that reached 85% of total employees. There is no concept of minority group because the Company gives equal treatment to all employees.

Number of Employees  

Professional Certification Agency

Since 2013 PT Vale has already established the Professional Certification Agency (LSP), which is recognized by the National Agency for Professional Certification (BNSP). As of the end of the reporting period there were 940 job competency standards that have been recognized and endorsed. The LSP is also supported by 181 assessors in various lines of work of the Company.

Total Employees of Professional Certification Participants  

For environment

Total Employees of Professional Certification Participants

US$ 8.1
million

USD - Value of environmental costs in 2016

Total Employees of Professional Certification Participants

1.2
million

Accumulation of numbers of trees planted

Total Employees of Professional Certification Participants

LGS

We operated Lamella Gravity Settler which was a new and more effective effluents treatment technology.

Total Employees of Professional Certification Participants

Blue PROPER

audit ratings from the government, for the fourth straight year

Control and Reduction of Emissions

PT Vale’s commitment to reduce the impact of mining operations and nickel ore processing is realized, among others, through the control and reduction of emissions, which is emissions of SO2. The Company continues to maintain ambient air quality to meet the standard by conducting regular measurement of particulate concentration.

The efforts made during 2016 to control and reduce SO2 emissions are:

  • improve more systematic and consistent sulphur addition control
  • sulphur addition system modification to add efficiency
  • improving nickel product recovery
Reduction of Emissions  

Alternative Energy Development

PT Vale’s operating characteristics consumes considerable energy compared to other industries. The Company took the initiative to meet most energy needs with the use of renewable energy.

PT Vale also continued biodiesel utilization program, Using a mixture of diesel fuel and Fatty Acid Methyl Ester (FAME) biofuel (BBN) with a concentration of 15%. Biodiesel is used as a fuel for the Company's operational motor vehicles. Significantly increased as this year already used for all company vehicless.

Biodiesel consumption
Power for processing plant  

For welfare

Emergency Response

PT Vale provides relief to the community affected by disasters, both that occurred in the area around the Company’s operations as well as other areas, through the Company’s Rescue Team and Disaster Response Team or Fire & Emergency Services (FES). FES of PT Vale has carried our a total of 126 emergency response activities throughout 2016.

Emergency Response  

Social Program

 

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35,517PTPM beneficiaries  

This report refers to the Sustainable Reporting Guidelines issued by the Global Reporting Initiative version 4 (GRI G4) and the Mining and Metals Sector Disclosures (MM). This report is based on core option of GRI G4 Sustainability Reporting Guidelines.