Environment Aspects

The Company acknowledges that its operations—especially in the coal mining sector—can potentially impact the environment, both directly and indirectly. Therefore, together with its subsidiaries, the Company is committed to responsible environmental management, focusing on carbon footprint reduction and minimizing impacts on surrounding ecosystems.

This commitment is manifested through various initiatives to protect, restore, and improve environmental quality across operational areas—during both active operations and post-operation phases. The Company also fully supports the government’s agenda to achieve Net Zero Emissions, as part of the national economic transformation toward sustainability.

Environmental management implementation is primarily focused on the operations of PT Borneo Indobara (BIB), the Company’s largest revenue-contributing subsidiary.

Environmental Programs

Examples of environmental management programs carried out by the Company through its subsidiaries from 2021 to 2024 include:

Use of Environmentally Friendly Materials

Energy Use

The Company and its subsidiaries are committed to using energy efficiently and responsibly, to minimize the environmental impact of operational activities, especially mining. This commitment also helps maintain the quality of life for communities around operational areas.

Through its subsidiaries, the Company targets a minimum energy efficiency of 1,000 GJ annually. To achieve this, the Company promotes the development and application of energy-efficient technologies through processes that include planning, implementation, monitoring, evaluation, and environmental impact assessments—based on life-cycle analysis and continuous improvement.

Despite an increase in coal production volume by BIB in 2024, total energy consumption only rose by 9.8% year-on-year. However, energy intensity decreased to 0.26 GJ per ton of coal, compared to 0.27 GJ per ton in 2023. In total, energy savings reached 6,533,453 GJ.

Greenhouse Gas (GHG) Emission Management

The Company recognizes that energy usage in BIB’s operations generates GHG emissions. Therefore, BIB continues to work on reducing GHG emissions as part of its climate change mitigation efforts and its contribution to slowing global warming.

Information on GHG emission volume and intensity during the reporting period is presented in the following chart and table:

Air Quality Management

Coal mining activities can generate various air pollutants such as nitrogen oxides (NOx), sulfur oxides (SOx), and total suspended particulates (TSP). These pollutants can negatively affect community health, especially those near BIB’s operational areas.

To address this, BIB implements a comprehensive air quality management program, including regular emissions monitoring to ensure air quality remains within safe limits set by the government.

The main reference is Indonesia's Minister of Environment Regulation No. 4 of 2014 on Air Emission Quality Standards for Non-Stationary Sources in Mining.

The following graph presents the annual average of each pollutant compared with the regulatory thresholds for BIB’s operational areas.

Waste Management

BIB operations generate various waste types, including overburden (topsoil), hazardous and toxic waste (B3) such as used oil, rags, filters, hoses, and automotive batteries, as well as non-B3 waste such as used tires, metals, paper, plastics, and organic waste.

To minimize environmental impact, BIB actively implements waste reduction strategies across all operations. This is achieved through the use of advanced waste management technologies and collaboration with third parties to apply safe and effective recycling practices. BIB is committed to ensuring all waste is managed according to applicable environmental regulations.

Specifically, BIB targets the mitigation of at least 1 ton/year of B3 waste and 2.5 tons/year of non-B3 waste, realized through the 3R principle (Reduce, Reuse, Recycle), including planning, implementation, monitoring, evaluation, and continuous improvement.

Non-B3 waste management also involves active participation from employees and local communities, who convert organic waste into compost and fish feed materials—fostering environmental awareness at the community level.

Water Resource and Effluent Management

The Company is committed to efficient water use across all operational areas. BIB adopts the best technologies and practices to ensure optimal wastewater management, so water quality and effluent remain compliant with government-set standards.

Management measures include:

• Ensuring wastewater in sedimentation ponds and WWTPs meets quality standards
• Daily water quality monitoring, especially for pH and TSS parameters, according to AMDAL SOP
• Using SPARING, a digital system for real-time wastewater quality monitoring

In 2024, effluent management efforts included:

• Periodic verification of treated water quality by independent labs
• Adding certified personnel for daily monitoring of mine water quality
• Employee training on wastewater management (e.g., artificial wetlands, wastewater microbiology, AMDAL drainage systems)
• Real-time water quality monitoring to enhance accuracy

BIB also facilitates stakeholder forums to discuss complaints and monitoring reports, strengthening external oversight by national and local government through annual site verifications. Feedback is used for continuous improvement in water management systems.

Land and Biodiversity Management

BIB’s mining activities directly affect landscape and natural habitats. Thus, BIB is committed to responsible land management to prevent environmental degradation such as erosion, landslides, and contamination.

In 2024, BIB successfully rehabilitated 6,487.62 hectares of land, achieving 94.46% of the total disturbed area of 6,869.95 hectares. This demonstrates a strong commitment to ecosystem sustainability and biodiversity in operational areas.