Sustainability Report 2020 - PT Vale Indonesia

Sustainability Report 2020 - PT Vale Indonesia

Sustainability Report 2020

Sustainability
Report 2020
Reinforcing
and Inspiring

Sustainability Report 2020

About the Report

Reinforcing and Inspiring

“Reinforcing and Inspiring” reflects PT Vale’s spirit to continue reinforcing and inspiring our country, especially during the COVID-19 pandemic. The pandemic situation during 2020 taught us a lot of lessons on how to survive, adapt, and share with others. Not only sharing with others, but also paying attention to the environment. PT Vale’s commitment to this effort is realized by providing support to improving the quality of life and to supporting carbon emissions reductions.

We want to continue to reinforce.

We want to continue to inspire.

We want to improve the quality of life for our future generations.

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Material Topics

The material topics covered in this Report changed from the previous period, the topic “Environmental Compliance” derived into “Emissions” and “Energy” topics so that each performance could be maximally managed and monitored.

icon Occupational Health and Safety

Occupational Health and Safety

Economic Performance

Economic Performance

Emissions

Emissions

Energy

Energy

Local Community

Local Community

Post-Mining Rehabilitation

Post-Mining Rehabilitation

Occupational Health and Safety
#1

Occupational Health and Safety

icon Occupational Health and Safety

Zero fatal work accidents

9,571,366 safe working hours

In 2020:

  • Launched a Safe Work Permit (SWP) as a standard to be globally applied in all Vale units. To ensure that all risks have been identified, safety controls are in place and comply with the New Golden Rules Number 9 (Risk Analysis).
  • Implemented New Golden Rules to improve the protection of all employees and contractors/suppliers from injury and fatalities.
  • Took part in the Global Accident Prevention Week 2020, involved employees and their families. Emphasize the importance of implementing the four pillars of prevention: Golden Rules, Critical Activities Requirements, SWP, and Vale Production System. PT Vale affirmed its commitment to “No safety, no production”.
  • Continued to implement comprehensive Hazard Identifcation and Risk Assessment (HIRA) for Sorowako’s operations.
Tackling Coronavirus
Tackling Coronavirus
Tackling Coronavirus

Tackling Coronavirus

The Company initiated a Pandemic Preparedness Plan. The plan covers three matters:

  • Maintaining the health and safety of employees, employees' families, and the surrounding communities;
  • Taking anticipatory steps to contain the spread of infection;
  • Ensuring the sustainability of Company’s operations.

PT Vale’s activities for the prevention and handling of COVID-19, included screening, testing, tracing, treatment and recovery.

  • Screening included conducting rapid tests for all employees and contractors every three weeks, and further testing with PCR test.
  • Tracing other parties who had close interaction.
  • Treatment and recovery measures for employees and/or contractors identified as having symptoms of COVID-19. The Company prepared the INCO Hospital in Sorowako and 108 isolation rooms as a health facility to treat the patients.
  • Activated Employee Assistance Program (EAP), a 24-hour consultation hotline for employees and their families during the pandemic.
  • Held COVID-19 Inspector training, attended by 60 people from all departments.
  • Introduced a work from home policy for employees with symptoms, those prone to COVID-19, and also for employees in support functions to reduce the risk of exposure to Coronavirus.
  • Provides health packages for employees working in the field.

PT Vale’s success in controlling COVID-19 pandemic has meant the Company has not stopped any of its mining and production operations.

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Economic Performance
#2

Economic Performance

Economic Performance

Production costs for nickel in matte US$6,898 per MT, lower than 2019

Total nickel in matte production of 72,237 MT, 98.9% from the target of 73,000 MT

Total nickel in matte sales of 72,846 MT, 99.8% from the target of 73,000 MT

Operating revenues of US$765 million

Economic value distribution of US$730 million

Contribution to state revenue

One form of economic value distributed is in taxes and PNBP payments to the Government. PT Vale’s taxes and PNBP payments amounted to US$72,995 thousand in 2020.

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Emission & Energy
#3

Emission & Energy

Emissions
Energy

PT Vale is committed to controlling greenhouse gas (GHG) emissions by reducing 33% carbon emission levels by 2030 and supply chain carbon emissions by 15% in 2035. This commitment is in line with Vale Global’s roadmap towards carbon neutral by 2050.

Hydropower operations reduces carbon emissions by 1,118,231 tons CO2 eq per year (compared to diesel power plant), and 2,292,375 tons CO2 eq per year (compared to coal-fired steam power plants).

Implementing Vale Power Shift initiative that focuses on new and renewable energy (NRE).

Power Shift initiative is expected to contribute around 40% of the planned reductions.

  • Automation and use of artificial intelligence, renewable electrification, use of alternative fuels for mining activities.
  • PT Vale has cancelled Coal Conversion Project 2, even though it contributed to reducing the Company’s financial costs by around US$40 million per year. By cancelling CCP 2, PT Vale will avoid increasing greenhouse emissions by 200,000 tons CO2 eq per year on average.
  • Using 30% biofuel (BBN) Fatty Acid Methyl Ester (FAME) as biodiesel for operational vehicles.

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Local Community
#4

Local Community

Local Community

PT Vale is committed to empowering communities in the operational areas and helping to improve their welfare. During the reporting period, this commitment was funded with US$4,141,694 in support, as well as synergies with local governments.

Indigenous People Support

  • In 2020, PT Vale collaborated with local communities on sustainable and environmentally friendly healthy agriculture and fisheries development programs, and also assisted the development of herbal-based community health efforts with the To Karunsi’e, To Padoe, To Tambee, To Taipa, To Weula, and several other indigenous communities.
  • PT Vale has also built infrastructure to support social and economic activities in the Dongi Settlement in Ledu-Ledu Village, Wasuponda District.
  • PT Vale convened government and community leaders to find a resolution, which ultimately led to a consensus solution driven by good-faith and open dialogue. In April, the Government reclassified the Bumper area as a temporary settlement area for Dongi Karunsi’e people.

Sharing Value through Social Programs

  • PT Vale continued the Community Development and Empowerment Program (PPM) to help improve community welfare by actively encouraging local communities to participate independently and to create sustainable local community development.
  • The PPM activities also includes support for infrastructure. The costs reached US$1,644,250, or 134% of the total 2020 budget.
  • PPM program costs amounting to US$505,554 in the Pomalaa, Bahodopi and Sua-sua block focused on completing the 2019 program. The 2020 PPM program will continue into 2021.

Collaboration to Develop Rural Areas

  • The Development of Independent Rural Areas (PKPM) is aimed at encouraging the development of independent and competitive rural areas.
  • In 2020, PT Vale program financing support in the Sorowako Block amounted to US$1,311,594 through mentoring and capacity building for the Inter Village Cooperation Agency (BKAD), and Joint Village-Owned Enterprises (Bumdesma).

Other Caring Activities

  • PT Vale provided assistance for handling the COVID-19 pandemic to the East Luwu Regency Government, through the Regency COVID-19 Handling Acceleration Task Force (GTPP). We also provided assistance to South Sulawesi Province. Overall, the assistance provided reached US$2.6 million.
  • Helped micro, small and medium Enterprises (MSMEs) during COVID-19 pandemic in four empowerment areas in the Sorowako Block, with investments amounting to US$17,244.
  • Carried out health service and promotion activities through herbal-based community-based health businesses (UKBM) that costs amounted to US$625,649.
  • Distributed aid to victims of flash floods in Masamba, North Luwu Regency, South Sulawesi. Assistance took the form of heavy equipment operations, a Search and Rescue Team (SAR), and logistics.

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Post-Mining Rehabilitation
#5

Post-Mining Rehabilitation

Post-Mining Rehabilitation

Post-mining reclamation fund in 2020 of US$4,169,683.

Starting from 2020, PT Vale also carries out land rehabilitation and reforestation beyond boundaries, outside the mining operational areas.

The Company rehabilitated 176.24 ha of post-mining land, bringing its total reclaimed land to 3,021.44 ha. During revegetation, we initiated an increase in the composition of local pioneer trees by up to 40%.

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Previous Report

2019 Sustainability Report

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