Sustainability Report 2018 - PT Vale Indonesia

Sustainability Report 2018 - PT Vale Indonesia


Continuing Our Sustainable Way
for the Next Decade

is the theme of the 2018 Sustainability Report, connecting the previous theme, which shows Vale's performance improvement in efficiency and maintaining sustainability in the midst of any situation.

About the Report

The Sustainability Report preparation follows developments in global reporting standards. The 2018 Sustainability Report is prepared with reference to GRI Standards and The Financial Services Authority Regulation (POJK).

Download the report in PDF format

Vale’s 50-Year Journey in Indonesia

For 50 years in Indonesia, PT Vale has maintained its position as one of the best mining and processing companies in the country. 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 2022 PT Vale targets its annual production volume to be 90,000 tons.

Learn more about our 50-Year Journey in Indonesia here

Sustainable Business & Operation

74,806 ton metric nickel in matte production

US$776,9 million total revenue

US$60,512 thousand net profit

295 local companies involved, around 12% of the total value of our procurement contracts

68.17% total domestic content, an increase from 67.85% in 2017

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

Over the next four decades, PT Vale has continued to increase its nickel in matte production volume. To realize this target, PT Vale has introduced various policies including intensifying the Continuous Improvement (CI) program. The (CI) realization by the end of 2018 included 7 projects that have been approved and executed.

We also implemented a Promote National Interest (PNI) program to increase the use of domestic products, and a Local Business Initiative (LBI) program to involve more local suppliers. The commitment is to use local competencies and manage domestic content levels.

The implementation of e-procurement opens up greater opportunities for local suppliers and increases domestic content levels.

Read more about our e-procurement here

During 50 years of operations in Indonesia, PT Vale has contributed to state revenues, through tax payments and non-tax state revenues every year.

Sustainable Governance

3,092 total Employees

123,393 total training hours

40 training hours/employee

0.51% recordable injury frequency rate

34,1 million safe working hours

0 lost work days

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.

Based on the Ethics and Conduct Office Department data, during 2018, PT Vale received 30 violation reports submitted through the VWC.

Read more about our Anti-corruption Program here

Read more about our VWC here

OHS Compliance. In 2018, the results of the compliance level of the Mineral and Coal Mining Safety Management System at 89.9%. This was an increase compared to 87.7% in 2017. Every year the Company conducts an OHS compliance audit that looks at the level of compliance to the IMS-Environment Health and Safety Management System.

Sustainable Empowerment

38 villages; 32,720 people; number of beneficiaries

US$ 3,019,585 PTPM funds allocation

Evaluation. The programs / activities are evaluated periodically, accompanied with report publication as accountability.

After first five-year PTPM ended in 2017, PT Vale continued the second five-year PTPM for 2018-2022 by drafting its Master Plan for Community Development and Empowerment (RI-PPM).

In 2018 PT Vale conducted socialization for the 2018-2022 RI-PPM with all stakeholders in the four targeted sub-districts for community development and empowerment activities. The RI-PPM is aimed at eight community development and empowerment sectors, i.e. education, health, income and employment, economic independence, socio-culture, environmental management, institutions, and infrastructure. For its implementation, it follows a three-pillar partnership pattern, i.e. the government, companies and society.

Read more about our Social Development Program here

Sustainable Environmental Conservation

93.31 Ha rehabilitated land in 2018

78,400 trees planted per hectare

4,250.63 Ha total rehabilitated land area

Since starting its activities in Sorowako, PT Vale is aware of the large energy needs for nickel ore processing and nickel in matte production of. The company built and operates three hydroelectric power plant units with a total capacity of 365 Megawatts (MW).

Towards Green Proper in 2020

Every year PT Vale includes environmental management in the Environmental Management Performance Assessment Program (PROPER) by the Ministry of Environment and Forestry. Over the past few years up to 2018, PT Vale maintained its Blue PROPER rank, and for the first time has become a Green PROPER Candidate. This rating indicates that the environmental management is in accordance with the applicable requirements.

Another initiative by PT Vale for managing the environment was applying the ISO 14001: 2015 Environment Management System (EMS) and ISO 14001: 2015 Certification. The aim is to expand the scope of environmental management to be integrated with the company's future strategic business processes.

Read more about our "Prize our planet" commitment here

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Previous Report

2017 Sustainability report

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