​​ Sustainability Report 2019 - PT Vale Indonesia

Sustainability Report 2019 - PT Vale Indonesia

Sustainability Report 2019
Improving Responsibly

About the Report

cover PTVI SR 2019

"Improving Responsibly" describes how after 50 years PT Vale is committed to continuing its journey. It is continuing to improve its performance responsibly, as a single unit to complete its 'sustainable growth'.

The 2019 Sustainability Report was prepared with reference to:

  • GRI Standards: Core option and the 2016 GRI standards, including the 2018 version of Occupational Health and Safety (OHS) topic.
  • Financial Services Authority Regulation (POJK): POJK 51/POJK.03/2017 regarding the Application of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies. As PT Vale's business is in the mining sector, the Company made adjustments to the information provided.
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Material Topics

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Occupational Health and Safety

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Economic Performance

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Local Community

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Post-mining Rehabilitation

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Environmental Compliance

The material topics in the 2019 Sustainability Report are the same as the material topics in the 2018 Sustainability Report, following discussions on November 12, 2018. The material topics were based on those considered still relevant to PT Vale's operational and business activities during 2019.

One
Economic Performance

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Production costs for nickel in matte of US$7,456 per MT, higher than 2018.

Total nickel in matte production of 71,025 MT, 93% of the target of 76,650 MT.

Total nickel in matte sales of 72.044 MT, 72,044 MT, 93% of the target of 77,700 MT.

Operating revenues of US$782.01 million, 93% of the target of US$841.80 million.

Economic value distribution US$815,864 thousand, an increase of 21.4% compared to US$671,960 million in 2018.

Sustainable Development Program

Vale's management model is known as VPS (Vale Production System). This model focuses on delivering results through deep and comprehensive implementation of policies, practices and standards. Company is intensifying its Continuous Improvement (CI) program and Kaizen as part of the VPS.

Contribution to state revenue

Overall, the economic value distributed to the Government in the form of tax payments and PNBP in 2019 reached US$129,029 million, an increase of 40.9% compared to US$91.6 million in 2018.

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Two
Occupational Health and Safety

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  • Zero workplace fatal accidents in 2019.
  • 87 days without lost-time injury (LTI) by 31 December 2019, equivalent to 4,881,030 working hours.
In 2019:
  • updated several safety related regulations that everyone must obey to prevent major accidents.
  • Involve employees' families in the "Fatigue Management System" campaign to promote the importance of working safely
  • Implemented a comprehensive Hazard Identification and Risk Assessment (HIRA) for all Sorowako operations for supervision and mitigation.
  • Full medical check-up obligations for Contractor employees
  • Education and training for Auditors on the Management of Mineral and Coal Mining Safety System (SMKP Minerba). In 2019 the training was attended by 61 PT Vale employees and 58 contractors.
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Three
Enviromental Performance

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  • Realization of environmental costs US$10,460,311 million.
  • SO2 emission levels below the quality standard threshold of 0.86 mg/Nm3.
  • Renewable energy-based electric boilers have been in operation since the end of May 2019.
  • Biofuel volume used 17.39 million litre, an increase of 45,6% compared to 11.94 million litre in 2018.
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  • 79,372 total trees planted.
  • Post-mining rehabilitation covers an area of 81.09 ha, with the cumulative area of 4,249.45 ha.
  • Achieving our first Green PROPER (Company Performance Rating Program) Award from Ministry of Environment and Forestry.
Larona Canal Lining - improvement to our renewable energy source

The project began on February 12, 2019 and was completed in April 2019. The project scope included membrane coating along 7 kilometers of the Larona canal wall, which is used for the Larona Hydroelectric Power, plus a 250-meter headpiece section. The project investment was US$55 million and employed 1,200 local workers and 60 expatriate workers.

Renewable Energy-Based Electric Boilers

To improve environmental performance in the nickel processing plant operations, PT Vale operates renewable energy-based electric boilers that have been in operation since the end of May 2019, following successful trials in February 2019. These are the first in Southeast Asia to be used in the smelter industry. Another advantage was eliminating the use of HSFO by 67,047 barrels per year

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Four
Community Empowerment

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Estimated number of beneficiaries in the Sorowako Block empowerment area is 38 villages and 38,277 people.

US$3,455,673 was allocated for PPM funds.

PPM-PKPM Integrated Agricultural Area Towuti Sub-district

Community Development and Empowerment Program - Independent Rural Area Development Program (PPM-PKPM) Integrated Agricultural Area Towuti Sub-district covering 5 villages in the Mahalona Raya area. For the program debut, the Integrated Inter-Village Coordinating Board (BKAD) proposed an Agricultural Facilities Quality Improvement Program that included a request to purchase five Combine Harvesters; PT Vale approved the purchase of three Harvesters worth Rp 1,499,400,000

SME Development Process, and Local Processed Commodities Outreach

PT Vale provided training to Small and Medium Enterprises (SME) in the empowerment areas in support of the Independent Rural Areas Development in 10 Regions. A total of 562 SMEs, engaged in Food processing, Beverages, Crafts, and Services, participated in this activity with a total funding of US$398,715. PT Vale also provided support to increase the selling price of products by helping with packaging design and supply, and helped with financing for certifying 70 leading SME products.

Community Herbal-Based Health Efforts

In line with the Government's program in the 2009 Health Law No. 36, Article 47 to improve integrated health, PT Vale together with the East Luwu Regency Government and the community developed an herbal-based UKBM program with a total funding of US$93,184.

Sustainable, Environmentally Friendly, and Healthy Agriculture

PT Vale provided funding of US$189,198 for the development of organic SRI rice cultivation in the Towuti Sub-district, in Lioka, Bua Angin and Libukang Mandiri Villages, as well as in several areas in the Wasuponda Sub-district in the Tabarano, Ledu-Ledu and Wasuponda Villages.

PPM Infrastructure Support Development

The budget allocation for the 2019 PPM infrastructure support was US$711,001, or 21% of the total 2019 PPM budget of US$3.46 million. The increase was due to the 500,000 liter water tank repairs, upgrades to the Asuli dam level, and repairs to water pipe installations for communities in eight villages in the Towuti Subdistrict.

PPM Program in Bahodopi and Pomalaa Blocks

The PPM 2019 program in the Bahodopi and Pomalaa Blocks remained focused on infrastructure support. The actual cost realization in 2019 amounted to US$146,713, with US$514,140 carried over to 2020 to continue several activities, making the total actual realization for the PPM 2019 in the Pomalaa and Bahodopi Blocks US$656,583, or 19% of the total 2019 PPM realization of US$3.46 million.

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Previous Report

2018 Sustainability report

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