Energy Ministry Encourages Mining Companies to be Committed to Decarbonization

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 476.Pers/04/SJI/2021

Date: 24 December 2021

Energy Ministry Encourages Mining Companies to be Committed to Decarbonization

The Ministry of Energy and Mineral Resources (EMR) continues to encourage the realization of the Net Zero Emission (NZE) target by 2060, including by asking mining companies to decarbonize aspects of their business activities.

"We continue to encourage energy sector companies, including mining companies, to be committed to decarbonization. Emission reduction target, as well as maintaining sustainable environment, are a joint responsibility of everyone, both in the energy sector and other sectors," said Head of Bureau of Communication, Public Information Services, and Cooperation of the Ministry of EMR, Agung Pribadi, in Jakarta on Friday (24/12).

Agung said that one of the efforts to reduce greenhouse gas emissions had been carried out by members of the Mining Industry Indonesia (MIND ID) holding, which consisted of PT Aneka Tambang Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Inalum (Persero), and PT Timah Tbk.

In a media gathering held on Wednesday (15/12), Director of Institutional Relations of MIND ID, Dany Amrul Ichdan, said that MIND ID was committed to achieving the target of reducing emissions from the energy sector and Industrial Process and Product Uses (IPPU) by 15.8% by 2030 and supporting the net zero aspiration of the Indonesian government in 2060. "The decarbonization program is a manifestation of one of the pillars of the sustainability pathway, namely environment and climate change," said Dany.

Dany explained that in 2019, MIND ID recorded 2.8 million tons of CO2e emissions from the use of fossil fuels such as coal and marine fuel oil for processing activity, and diesel fuel for project vehicles/heavy-duty equipment. Meanwhile, the use of electricity from PLN's grid for operations and production activities generated 0.1 million tons of CO2e.

To support emission reduction, continued Dany, PT ANTAM Tbk. and PT Timah Tbk. are initiating a switch from marine fuel oil (MFO) to LNG with a total reduction estimated at 121,700 tCO2e per year. "Meanwhile, carbon offsets (nature-based solutions) carried out by PT Bukit Asam Tbk. and PT Timah Tbk. can reduce GHG emissions by 470,807 tCO2e per year in total," said Dany.

Other programs include the expansion of a train station for coal trains of PT Bukit Asam Tbk. which can reduce GHG emissions by 21,000 tCO2e per year and the implementation of electric buses that can reduce GHG emissions by 100 tCO2e per year. Meanwhile, PT Inalum (Persero) is developing a CPC and alumina refinery located close to the company. This effort can reduce 8,011 tCO2e per year. PT Inalum (Persero) is also exploring a 'step-out' opportunity by developing new designs of pot reduction to increase efficiency while reducing GHG emissions by 12.873 tCO2e per year.

"In addition to the above initiatives, the MIND ID Group is initiating the use of renewable energy through solar PV. The MIND ID Group is also exploring electrification, CCUS, and the mining of battery-grade lithium carbonate to support electric vehicles," Dany concluded. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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