Environment Aspects

Policy

The Company realizes that the business activities of the Company and its subsidiaries, especially in the coal mining sector, have impacts and risks, both direct and indirect, on the environment. Therefore, the Company and its subsidiaries carry out good environmental management planning to reduce carbon footprints and minimize negative impacts on the environment. The Company is committed to maintaining, restoring, and improving the quality of the environment in every operational area of the Company and its subsidiaries during and post-operation and supporting the government's net zero emissions plan in the transformation of the Indonesian economy.

For the environmental aspects, the discussion focuses on the performance of coal mining business from the mining operations of BIB which is the largest contributor to the Company’s revenues.

Programs

The following were some of the programs related to environmental aspect that had been implemented by the Company through its subsidiaries from 2021 to 2023:

Use of Environmentally Friendly Materials

Energy Consumption

The Company and its subsidiaries are committed to using energy efficiently and responsibly to minimize environmental impacts resulting from mining operations as well as to maintain the quality of life of communities around the operational areas. The Company through its subsidiaries is committed to carrying out efficiency of at least 1,000 GJ per year and encouraging the development and implementation of energy efficiency technology, by planning, implementing, supervising, evaluating and calculating environmental impacts through life cycle analysis studies of energy utilization, as well as continuous improvements in energy use.

Information regarding BIB’s energy consumption during the reporting period is as shown in the table below:

While BIB’s coal production volume increased in 2023, BIB’s total energy consumption decreased by 10.31% y-o-y, and therefore energy intensity also decreased to 0.15 GJ/ton of coal in 2023 compared to the previous year of 0.20 GJ/ton of coal.

Greenhouse Gas Emission Management

The Company realizes that the use of energy in BIB’s various activities and operational processes produces GHG emissions. Therefore, the Company through BIB always strives to reduce the resulting GHG emissions as a form of support and an active role in reducing the rate of global warming and minimizing the negative impacts of climate change.

Information regarding BIB’s GHG emissions and their intensity can be seen in the following graph and table:

Air Quality Management

Coal mining activities release a number of air pollutants in the form of nitrogen oxide (NOx), sulfur oxide (SOx), and total suspended particles (TSP). These air pollutants can pose health risks to stakeholders around BIB’s operational areas. The Company through its subsidiaries seeks to reduce its carbon footprint and negative impacts.

In an effort to prevent negative health impacts, BIB implements an air quality management program to monitor and maintain air quality so that it remains within the thresholds set by the government, guided by the Regulation of the Minister of Environment of the Republic of Indonesia No. 4 of 2014 on Quality Standards for Emissions from Immovable Sources for Mining Businesses and/or Activities.

The graphs below depict the annual average values compared to the threshold sets for each pollutant in BIB’s operational areas.

Waste Management

In carrying out its operational activities, BIB generates waste in the form of overburden, hazardous wastes, and non-hazardous wastes. Hazardous wastes consist of waste oil, fabric wastes, grease, filters, hoses, and automotive batteries. Meanwhile, the non-hazardous wastes consist of tires, metal scraps, papers, plastics, and organic wastes.

BIB strives to minimize waste in every operation and is active in seeking innovative solutions to manage waste efficiently through the use of the latest technology and in collaborating with related parties to implement recycling practices. BIB is committed to ensuring that the waste produced is managed safely and in accordance with applicable environmental regulations.

BIB always strives to mitigate the potential generation of hazardous waste of at least 1 ton per year and non-hazardous waste of at least 2.5 tons per year, as well as to encourage the development and implementation of 3R technology for hazardous waste and non-hazardous waste including planning, implementing, supervising, and conducting regular evaluation and improvement in the management of hazardous and non-hazardous waste.

In addition to hiring contractors, for the management of non-hazardous wastes, BIB also engaged employees and the local communities around the operational areas to participate in minimizing waste by utilizing waste into compost and raw materials for pellet production.

Water Resource and Effluent Management

The Company, through its subsidiaries, is committed to using water sources efficiently in all operational activities and seeks to adopt the best technologies and practices to increase the effectiveness of the liquid waste management system and ensure that the quality of water and effluent around the operational area meets the quality standards determined by the government.

To identify and manage water-related impacts, the efforts made by BIB, among others:

• ensuring that all wastewater that has been managed in settling ponds and IPAL meets the determined quality standards
• carrying out water management and monitoring on a daily basis
• measuring wastewater quality (pH and TSS) using a methodology which is in accordance with the SOP for Acid Mine Water Management
• using digitalization instruments for real-time monitoring of wastewater quality, namely SPARING (Continuous and Networked Wastewater Quality Monitoring System)

Throughout 2023, BIB had implemented several efforts on effluent management, as follows:

• ensured that products generated from the effluent treatment in operational areas do not exceed the parameters set by the government
• worked with an independent laboratory to regularly measure and monitor the quality of water generated from the effluent treatment before the water is diverted
• employed certified personnel to conduct daily mine water management and monitoring
• conducted several effluent management trainings for employees on how to conduct artificial wetland management, wastewater microbiology, and blending of acid mine drainage
• performed real-time monitoring to continuously measure water quality

BIB facilitates forums which involve stakeholders in BIB’s operational areas, as a means for facilitating discussions regarding complaints, water management, and submission of water quality monitoring reports. Through transparency and shared commitment, all stakeholders can monitor water quality management carried out by BIB. External stakeholders are also involved through annual site verification conducted by central and local governments on water management systems and practices. The feedback received will be used as input for improvements.

Land Management and Biodiversity Management

BIB’s mining activities certainly have an impact on the landscape and ecosystem around its operational areas. BIB strives to carry out good land management to prevent environmental contamination, erosion, and landslides in order to reduce operational impacts that can disrupt wild habitats and biodiversity.

Cumulatively, the total area that had been rehabilitated in 2023 is 6,370.40 Ha, or 95.65% of the total disturbed area of 6,660.17 Ha.