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.
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.
Thousand USD Contribution to the State
Metric Tons Nickel Production
Thousand USD Net Profit
Thousand USD Total Revenue
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.
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).
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)
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.
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.
USD - Value of environmental costs in 2016
Accumulation of numbers of trees planted
We operated Lamella Gravity Settler which was a new and more effective effluents treatment technology.
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
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.
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.
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.