Operational Benefits of Hydroelectric Power Generators

Hydroelectric Plant

Operational Benefits of Hydroelectric Power Generators

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Company Production

  • The plants support Vale Indonesia’s efforts to increase nickel production by prioritizing production cost efficiency.

Contribution to National Treasury

  • The utilization of surface water sources and the distribution of electricity to surrounding communities, as a result of plant operations, occur alongside the fulfillment of tax obligations and retributions by PT Vale, as stipulated by the government.
  • PT Vale fulfills its obligation to pay water tax and water levy payments to the Treasury of South Sulawesi Provincial Government. Total payments from PT Vale in 2015 reached US$6.6 million. (Sustainability Report 2015)
  • PT Vale also fulfills its obligation to pay a Street Lighting Tax (PPJ) amount of 22.9 billion rupiah in 2015 for electricity consumed at PT Vale’s processing plant. (Sustainability Report 2015)
  • PT Vale also donated Rp40.2 billion to the Regency of Luwu Timur, from PLN payment for electricity bought from PT Vale. (Sustainability Report 2015)

Society

  • PT Vale distributes 10.7 MW of electricity produced by the hydroelectric plants to the State Electric Company (PLN) and the Luwu Timur Regency government to meet the needs of local communities.

Environment

  • The plants support the government’s efforts to reduce carbon emissions produced by mining activities. By employing just one hydroelectric plant, PT Vale is able to cut back half a million metric tons of carbon emissions each year (which would have been the case if fossil fuels were used).
  • By operating the Karebbe plant, PT Vale eliminates the need to consume 13 million barrels of High Sulfur Fuel Oil and about 3 billion liters of diesel fuel each year (which would have been the case if fossil fuels were used).