Many mining companies take efficiency measures to fulfill responsibilities to the environment, including by cutting jobs. Some have chosen manual techniques in order to save costs.
In the city of Bogor, West Java, there is a facility for research and testing of various types of plants to be used for revegetation of mined areas. Reclamation of mined areas has become the focus of activity of SEAMEO BIOTROP, a center for the development of tropical biology in Southeast Asia. Irdika Mansur, Director of SEAMEO BIOTROP, is one of the leading forestry academics pursuing mine reclamation in the last 15 years.
The three award-winning companies mentioned above are not foreign to him. He knows really well how the reclamation efforts at each mine of the three companies are exemplary. PT. Vale Indonesia, Tbk., for instance, is the first company choosing to plant a valuable and expensive ebony species, and it also has a gorgeous orchid garden with an assortment of local varieties. On PT. Berau Coal, Tbk., he described the company as a savior of the endangered species of Shorea Balangeran, a meranti-type plant genus endemic to the Kalimantan island. As for PT. Bukit Asam (Persero), Tbk., the company had successfully managed eucalyptus oil refinery from its eucalyptus plantation.
“They are indeed big companies. But it does not have to be matching their budget (for revegetation), everyone can do it. This can be adjusted, as long as proper planning and engineering are conducted,” said Mr. Mansur recently.
“Reclamation efforts are often regarded as an expenditure for companies. Actually, reducing costs can be done without lowering the quality of reclamation of mined areas,” added Mr. Mansur.
He noted that one cost component which could be lowered was of seeds and fertilizers supply. As the price of seedlings is much more expensive than that of seeds, alternatively one can choose to sow seeds directly. This method is more practical and can save transportation costs, as seed bags would not be needed to be transported by trucks. Companies can also reduce dependence on expensive fertilizers by making their own composting facility. In addition to the benefits of supporting the reclamation, the facility could also be used for waste management.
“Costs can really be reduced. What is important is to follow the rules. For example, by the rules it is mandatory in a reclamation effort to plant 625 trees per hectare. So, one must multiply it to the hectares involved, just as regulated. The suitable tree species could be tailored to the need and ability,” he explained.
The strong commitment of mining companies to environmental management causes was also evident from the 32 companies listed as candidates to obtain a PROPER Green status from the Ministry of Environment and Forestry this year. PROPER Green means that a company’s efforts in environmental management exceed the requirement given by the government. It also must have adequate environmental management system, conduct the 4Rs (reduce, reuse, recycle, recovery), and have a good relationship with the community.
Aside of the list issued by the Ministry of Environment and Forestry, there is also a PROPER ranking released by provincial governments to assess the mining companies’ compliance in the regions, such as that issued by the Provincial Government of East Kalimantan, where many mining activities take place. In September 2015, the ranking was announced through an East Kalimantan Governor’s Decree No: 660.2/K.351/2015. The version of PROPER Green status by the East Kalimantan province has been achieved by many mining companies there.
One company obtaining Proper Green certificate in the province is PT. Nuansacipta Coal Investment. The coal mining company has also been blown by the weakening commodity prices. Waskito Tanuwijoyo, General Manager of Eksplorasi Bhakti Coal, a company in the same group with PT. Nuansacipta, confirmed the notion that environmental management should not be affected by the crisis. “In whichever conditions, environmental management should be conducted in accordance with the reclamation plans,” he said.
Mr. Tanuwijoyo also noted that currently local governments had also been determined to ensure that IUP holders would not abandon their mined areas without prior proper management. Particularly during the last two years, the Corruption Eradication Commission (KPK) had also participated in monitoring the mining sector. IUP holders had been pursued to pay reclamation guarantees. Should any mining companies fail to perform reclamation, they will see that their deposits would not be disbursed.
The sluggish situation in the mining business is indeed a test for companies’ commitment to the environmental management. A strong commitment shall depart from the awareness that essentially any mining activities would disrupt the landscape, therefore there should be efforts to improve the environment.
“Whether in operation or not, environmental management in accordance with the rules of best mining practices should still be conducted. However, with current conditions, cheaper options must be explored. We should strive for good practices which are cost-effective,” said Tonny Gultom, Chairman of the Communication Forum of Indonesian Mining Environmental Management.
Mr. Gultom currently works at Harita Group who owns several mineral mining concessions, including nickel and bauxite. His company, affected by the export ban, has to stop operation temporarily until its smelter facility construction is completed.
Looking back to the events linked with the mineral export ban implementation, one issue which was regrettable for Mr. Gultom was the lack of anticipation from the government on the environmental impacts. While waiting with a hope for export clearances, it turned out that there was no dispensation given to companies during the process of construction of the smelter. This has also resulted in the sudden closure of mining operations, without any preparation by the environmental management. The government’s reaction was also fairly slow, as it issued an associated circular only six months later.
“For Harita, at the moment the mine pits are made into interconnected pools. We keep on performing the monitoring and the environmental management. Later on, when our smelter is constructed, the pits can be dried down and prepared to be mined again,” explained Mr. Gultom.
He also called the government to intensify its environmental supervision and education roles, so that companies forced to cease operations could also receive some attentions. The commitment to managing the environment can still be realized even in difficult times. There are many alternatives to choose in order to maintain cost effectiveness, especially when openness to discuss and share the experiences is well facilitated.
Mr. Gultom also clarified that workforce reduction in the environmental division should not be used as an excuse to become absent from performing environmental obligations. In developed countries, typically the number of workers is also not that big. He shared his past experience of witnessing the effectiveness of the performance in the developed countries during a visit to a mine abroad, when he was still an employee at Newmont.
“The environment division was only consisted of five persons. Inspection, sampling and reporting were done by one person only. No need to designate a worker for a particular work, for example a person taking samples, and another doing the recording. They were also surprised when I said in Indonesia I had dozens of workers in the environment division,” he said.
Limited budget or manpower can always be circumvented. With remaining resources left, many mining companies are proving themselves to still be keen on maintaining environmental sustainability. However, the concern on the threat of the sluggish business conditions to the sustainable mining practices also leaves a big question: until how long can they survive?
