POLICY ON MINE

ENVIRONMENTAL PROTECTION

S. Witoro

Directorate of Mineral and Coal Technique

Directorate General of Geology and Mineral Resources

Jakarta , January 2004

 Why has Mining a role
to play in Sustainable Development?

• Essential to modern living and ingredients of most

products, industry inputs and services

• Importance to developing countries and international

commerce

• Mineral resources comprise ~50% of natural capital,

and exploiting them effects all other components of
natural capital - land, water, air and biodiversity

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 WHY DOES MINING ACTIVITY ALWAYS
CONFLICT WITH THE ENVIRONMENT?

 Can be found everywhere (occurrence everywhere)

- Can not choose location for development
 Change landscape
- Huge earth material movement (for surface mining)
 High capital intensity, high risk…(mining is
gambling)
- Involve heavy (big) equipment
- Low employment
(not mass production type)
CONFLICT
Mineral / energy
essential for modern (if not well managed)
living
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 The important of same perception on
natural resources utilization

 Along with its genesis, most of mineral resources

lay down underneath protected forest
 Mineral resources (if needed) can be utilized for
national sustainable development

so ur ces” utilization is
policy on “ all n a tural re
Comprehensive r os pe r it y of the nation
eeded to ac hiev e the p
n

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 Industry expenditure
1997 1998 1999 2000 2001
1 Import by mining company 1.000,3 770,1 668,5 977,3 701,7
2 Import through domestic agent 48,5 52,5 41,0 3,0 6,0
3 Domestic buying 528,5 323,3 486,5 570,0 420,2
4 Total expenditure 3.348,3 3.313,7 2.586,0 2.465,4 1.431,0

INDUSTRY EXPENDITURE

4.000,0
Expenditure (Million US$)

3.500,0
3.000,0
2.500,0
Pembelian dalam negeri
2.000,0
Total Pengeluaran
1.500,0
1.000,0
500,0
0,0
1996 1997 1998 1999 2000 2001 2002

Year

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Source: PWC, Indonesia Mining Industry Survey 2002
 Expenditure for public service

1997 1998 1999 2000 2001

1 Employe Training 60,1 112,8 118,6 134,6 108,5
2 Community and regional development 60,4 237,8 211,0 269,7 279,1

Expenditure for public service

300,0
Expenditure
(Billion Rp)

200,0 Pelatihan Pegaw ai

100,0 Regional & Comdev

0,0
1996 1997 1998 1999 2000 2001 2002
Year

Source: PWC, Indonesia Mining Industry Survey 2002

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 Contribution to Indonesian Economy
1997 1998 1999 2000 2001
1 Salary (excl. Expatriates) 290,1 545,2 846,0 1.008,2 1.073,6
2 Buying from domestic supplier 1.523,2 3.252,6 3.688,0 4.790,4 4.303,9
3 Government revenue 1.867,8 6.367,9 6.651,6 6.762,8 8.329,8
4 Interest payment 266,5 847,9 294,1 259,5 264,3
TOTAL 4.125,0 11.243,2 11.777,8 13.540,4 14.309,4

CONTRIBUTION TO INDONESIAN ECONOMY

NOMINAL (Billion Rp)

20.000,0
15.000,0 Pendapatan
Pemerintah
10.000,0
Total sumbangan
5.000,0 pd. ekon. Ind.
0,0
1996 1998 2000 2002
Year

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Source: PWC, Indonesia Mining Industry Survey 2002
Corporate Citizenship & Sustainable Development:
A New Paradigm

World Mine Ministeries Forum

Toronto, March 2000

Polluter
Polluter pays
pays // end
end of
of pipe
pipe Pollution
Pollution prevention
prevention
Command & control Partnership & cooperation
Dependency Interdependency

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 Economy

Social Environment

Principle of implementation of Sustainable Development

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 Economy

Social Environment

Principle of implementation of Sustainable Development

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Process of Mine Closure Planning
(Edited from: SRK Consulting, A Technical Framework for Mine Closure Planning – Tchnical Review Series No 20, British Mineral
Industry Research Organization (MIRO) 15 March 2002).
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 Some Application of GMP
- High precision exploration
- Application of proper technology (recovery, impact)
- Land use efficiency
- Soil/overburden handling, erosion and
sedimentation control, AMD
- Reuse and recycle of water from processing plant,
Protection of water sources
- Total mining, contemporaneous reclamation
- Environmental monitoring
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 EFFORTS HAVE BEEN DONE IN
MINING
Application of Pollution Prevention Principle, as follow:

INTERNALISATION OF ENVIRONMENTAL PROTECTION

IN MINING ACTIVITY !!!

Means:

Give first priority on technical approach in mining

activity in order to minimize impact and to mitigate
impact
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 EFFORTS HAVE BEEN DONE IN MINING

OPERATIONALISATION IN
GOVERNMENT TASK

• Annual environmental management and

monitoring plan
• Report on quarterly and yearly environmental
management implementation
• Five year reclamation plan
• Reclamation bonding
• Report on reclamation progress
• Report on environmental incident handling
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 TECHNICAL ASPECT OF ENVIRONMENTAL
PROTECTION IN MINING
• Acid Rock/Mine Drainage, (ARD, AMD) • Source
• Erosion and sedimentation control • Prevention
• Tailing • Maintenance
/Monitoring
• Slope stability
– pit /ex pit
– Overburden dump
• Reclamation
– Rehabilitation of soil surface function
– Prevention of flood/slide
• Artificial Wet Land
• Mine closure
– Environmental safety
– Sustainability of development
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Future Government Policy :
 Encourage company to implement Good
Mining Practice
 Partnership development

 Promote investation
 Encourage undergound mining and
marginal deposit exploitation (insentif
mechanism)
 CLOSING REMARKS
• Indonesia relatively has abundance mineral
resources and it has high potency as base
capital for development
• Mining industry as prime mover and accelerator
for national economic development should be
optimized
• Mineral resources utilization should be well and
carefully managed, because nonrenewable and
can generate negative impact to the
environment

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