Environmental Monthly Report - Jun 13

1This document was generated by Environmental Department - PTFI

Environmental DepartmentMonthly Report June 2013

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Executive Summary June 2013 operating cost was $ 1.5 M, or 7.8% ($ 110 K) higher than forecast. YTD 2013 spending was

$8.3 M, or 5.9% ($ 522 K) lower than below the forecast. Environmental Department achieved 4,293,520 man-hours worked without LTA and RAC since April,

2005. YTD actual reportable injury rate in June 2013 was 0.0. One case of serious injury which resulted in caused fatality by CV. Keladingki (Contractor under Environmental Department) occurred on June 17. was not categorized as fatality incident.

Monthly Inspection Finding (MIF) index for June2013, based on inspection of 28 facilities, was 0.21, or does not meet the target of lower than the target of 0.11.

PTFI received a letter from Ibu Nelly on her response to our routine KepMen431 quarterly report. The letter questions the exceedance of the TSS level at K5 monitoring point in November 2012, the elevated mercury level in the Kamora estuary, disagreement to our plan to discontinue the K5/P5 monitoring points, and the high TSS in the estuary and effort to retain more tailings on land. PTFI has responded to the letter accordingly.

PTFI met with the Minister of Environment on June 17 to update the Minister on the Big Gossan incident and to remind him on the follow-up of KepMen431 revision. The minister advised that discussion on the KepMen431 revision be on hold until the inauguration of the new MoE Deputy sometimes in July 2013. Response of the letter has been sent to MoE.

External law firm provided draft analysis on the legal review of the planned placement of the PCon material in to the ModADA. The draft analysis indicated that such placement is legally possible on the basis of broad designation of the Mimika region as the backbone mining zone in the National Spatial Plan based on Ggovernment Rregulation Number 26 year 2008.

The last meeting in May with MEMR indicated that PTFI Mine Closure Document was technically complete, and awaiting approval from the Director General of Mineral and Coal.

PTFI received a cCopy of the letter from the Provincial Papua Mining office in Jayapura on a complaint was received. The letter is about a complaint from from the East Coastal Community Forum related with on the sedimentation in the tailings estuary area. PTFI plans to meet with Provincial Papua Mining Office in Jayapura to explain about PTFI tailings management system in the AMDAL 300K which was approved by GoI in 1997.

Land clearing and excavation works of Ajkwa alternative channel phase II has reached 200 meters out of 600 meters total target length targeted. This project will temporarily is required to provide access for local people from the East to cross tailings Ajkwa Estuary during low tide.

PT. Freeport Indonesia receivedpt “Indonesian Green Award for Biodiversity Conservation Program Category” that was held by La Tofi School of CSR.

Eight schools from Mimika District received the Adiwiyata Province Trophies during the Environmental Day celebration that officially opened by Head of Mimika District in Timika and Papua Governor in Jayapura.

Ten (10) plots of slope area in Blitar 4030L and in Tembagapura along the stream affected by erosion or landslide have been reclaimed using hydro-seeding. A total Total 172 of 282 reclamation monitoring plots as recommended by ENV were completed.

Leadership

Andi MukhsiaGesang Setyadi (Jobsite)Tom Weiskopf (TE)

Manpower

Staff 82Non-Staff 72Papuan 89Non-Papuan 65Contractor 258

Table of Contents

Executive Summary 021Safety 032Highlight Issues 032Environmental Support 05Environmental Monitoring 14

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Safety & Budget

Safety record and achievement for June 2013 were as follows: One case speeding violation by Tom Weiskopf occurred on June 12, 2013 at MP 28, when drive LV 01-

3151. One case minor accident of LV 01-3214 by Romen Rifian occurred on June 08, 2013 at SP 2 Lowland. One case serious injury which resulted in caused fatality by CV Keladingki (Contractor under

Environmental Department) occurred on June 17, 2013 at Kuala Kencana. The victim name is Musa Yowani (907784).

YTD reportable rate injury (LTA, RAC or NDL) was 0.0 (the ceiling is 0.0) Environmental Department achieved 4,293,520 man-hours worked without LTA and RAC since April,

2005.

Actual operating cost in June 2013 was $ 1.5 M, or 7.8% ($ 110 K) higher than forecast. YTD 2013 spending was $ 8.3 M, or 5.9% ($ 522 K) lowerbelow than the forecast.

Description 2012 June 2013Fatality 0 0 0Injury LTA 0 0 0 NDL 0 0 0 RAC 0 0 0 FAC 3 0 0 Reportable Rate 0.0 0.0 0 Ceiling 0.0 0.0 0Property Damage LV accident 3 1 2 Fire 0 0 0Speeding Infraction 2 1 3Manhours 74,310 523,064Cumulative Manhours 3,770,456 523,064 4,293,520

2013 Safety Statistic - YTD

Highlight Issues

MoE Decree 431 on Tailings ManagementPTFI received a letter from Nelly on her response to our routine KepMen431 quarterly report. The letter questions the exceedance of the TSS level at K5 monitoring point in November 2012, the elevated mercury level in the Kamora Estuary, disagreement to our plan to discontinue the K5/P5 monitoring points, and the high TSS in the estuary and effort to retain more tailings on land. Our response letter included the explanation that the high TSS level has been anticipated and modeled; and has been discussed several times with MoE. As indicated by modeling, it was not if this would occur, but whenthe exceedance will soon occur and predict the TSS value of 24500mg/L on annual average. The ability to accurately model and measure TSS

Leadership

Andi MukhsiaGesang Setyadi (Jobsite)Tom Weiskopf (TE)

Manpower

Staff 82Non-Staff 72Papuan 89Non-Papuan 65Contractor 258

Table of Contents

Executive Summary 021Safety 032Highlight Issues 032Environmental Support 05Environmental Monitoring 14

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over shorter periods was always known to be an issue due to the limitations of even the best models to accurately predict river deposition over short periods of time. A single flow event on November 5, 2012 associated with high rainfall was the main contribution to the high TSS value in November 2012. As the event occurred naturally, it would not breach the environmental law. P5 and K5 are located in the active deposition zone, and therefore are not appropriate as monitoring points. This scientific argument was also presented by ITB experts during meetings on August 10, 2010 and November 5, 2012 with the MoE. PTFI will be willing to meet and re-discuss the workable revision of KepMen431 as already conveyed in our recent letter to MoE on May 15. On the mercury level, our explanation included providing a short report on the mercury trend on this estuary and explaining that the high mercury concentration phenomena is naturally occurring from the upstream river. It was explained also that the area is outside of our project area, and are not flown by tailings.

PTFI met with the Minister of Environment on June 17. The purpose of the meeting is to update the Minister on the Big Gossan incident and to remind him on the follow-up of KepMen431 revision. The minister advised that discussion on the KepMen431 revision be on hold until the inauguration of the new MoE Deputy sometimes in July 2013.

PROPER No new update. PTFI continues to be exempted from this year PROPER Audit. PJP submitted self-assessment questioner in lieu of PROPER verification for site visit. The document is being reviewed by MoE. Feedback is expected to be received in July.

Implementing New RegulationsMoE Deputy IV in charge of B3, B3 Wwastes and Dumping (Nelly) socialized the latest draft version of the B3 wastes regulation which was dated May 23, 2013, which and essentially does not change from the previous version. in which L large volume mining and energy wastes, such as tailings and fly ash are still classified as Special B3 wastes. As reported in the last month report, Indonesian Mining Association hold its position that these mining and energy wastes should not be listed as B3 wastes, but suggest site specific management insteadof these wastes. Nelly met with representative of Indonesian Chamber of Commerce on June 10, and basically mentioned that the draft regulation is final. The draft regulation continues to be on hold to be discussed with the Ministry of Law and Human Right, until the industry concerns are addressed by MoE.

Reclamation/Mine Closure MEMR invited PTFI and other mining companies on a workshop of reclamation and mine closure plan. The purpose is to guide mine operators to prepare technical aspects of mine reclamation and mine closure plan. About 180 representative mining companies attended the workshop. Cost of reclamation and mine closure plans which is were based on a Canadian standard which is stipulated in the Minister of Regulation Number 18:2008 was explained in detail.

Up to now, there was no update on PTFI Mine Closure Plantailings reclamation. The last meeting was in May, in which MEMR indicated that PTFI Mine Closure Document was was technically complete, and was awaiting approval from the Director General of Mineral and Coal.

Pyrite Pond Project

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External law firm provided a draft analysis on the legal review of the planned placement of the PCon material into the ModADA. The draft analysis indicated that such placement is legally possible on the basis of broad designation of the Mimika region as the backbone mining zone in the National Spatial Plan based on government regulation Number 26 year 2008. The law firm recommends further for PTFI to work with local Mimika government to draft up the detailed spatial plan of the ModADA.

Environmental Complaint PTFI received a Ccopy of athe letter from the Provincial Papua Mining office in Jayapura was received. The letter is about a complaint from the East Coastal Community Forum on the sedimentation in the tailings estuary area. The Provincial Mining office responded to the letter and report that the location being referred by the community is not being presented in enough detail in a form of a map, and asked the community to pinpoint the exact location of their residence. We plan to meet with the Head of Papua provincial office to update them on the chronology of tailings management and the current efforts and dialog we have with MoE and the Provincial Environmental office.

Sedimentation at Estuary The initial kick-off meeting with Happold and IPB to discuss the scope of the Coastal Management Plan is being set on July, 30 in Bogor. There is a plan to conduct a wider stakeholder kick-off meeting in Timika in August or September.

Phase 2 alternative channel excavation preparation is underway. During the month, the local contractor completed 20075 meters of excavated channel completed out of 600 meters. It is estimated that the whole channel will be completed in August 2013 to temporarily ease the community travel through tailings estuary. Two potential dredging companies were invited to Site in order to provide them with an overview of the sedimentation in the tailings channel and shipping channels to help them better understand site condition.

External Audit PTFI met with ITB to discuss preliminary plan to conduct triennial audit and plan to overlap with the new requirement of mandatory environmental audit as stipulated in the new Ministerial Decree Number 17 Year 2013 on the Environmental Audit. The external audit is being planned for May 2014.

Environmental SupportEnvironmental Management System Environmental Emergency System

There was no reportable spill recorded during the month. Below are the cumulative reportable spills until end of June 2013 for 12-rolling-months.

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Environmental Audits and Inspection

Environmental observation was conducted to KPI Marine and informed them related with vessel garbage disposal policy. The observation was also took place in the MV. Ammar Ship to en. This is to enssure that the ships’ crews understand regarding this policy.

Figure 1 – Environmental observation at MV. Ammar Ship (left) and our team explaineding vessel

garbage disposal policy (right)

During the month, the environmental inspections and observations were conducted at several shops at Grasberg Mine Maintenance, Underground Mine Maintenance, GMBL Warehouse, PJP Power Plant – highland, Facilities Management - lowland, several PHMC facilities, Portsite Clinic, Environmental Biotic Monitoring – Portsite, and AVCO.

Environmental Support Team

Novriadi ViscoLusia IndriawatiDjemianus Rumainum

PTFI has been certified ISO14001 Environmental Management System by SGS since 2001.

MIF (Monthly Inspection Finding) index for May 2013 was 0.21 or higher than target of 0.11. The MIF is derived from dividing the number of significant findings to the number of facilities inspected during the month.

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Activities related with Audits and Inspection:

Received information from Geo-Hydrology associated with wells to be installed at MP73 landfill to follow-up recommendation from External Audit. Currently, the bidding is in process to select drillers for installing wells.

Conducted meeting with Contract Department to discuss 2012 FCX Audit finding which is related with contractor’s performance evaluation. The finding still could not be closed because the system has not yet been established. so that the contractor’s evaluation has not been conducted.

Waste Management & Recycle Program

Discussion with Mahaka Lime Plant and Grasberg Engineering was conducted for used oil generation and collection to ensure enough storage while Mahaka Lime Plant and Dewatering Plant are in shut-down condition due to stoppage of no mining operation or no dedicated manpower for transporting raw material to Mahaka Lime Plant. After calculating used oil that are generated and the availability of storage space, it was concluded that used oil storage was sufficient during this temporary situation.

Figure 2 – Observing used oil at Grasberg Maintenance (left) and MP74 (right)

There were 34 containers of hazardous waste were shipped outside jobsite for further treatment with MV. Sawu Sea–72AJ and MV. Flores Sea–73AJ. Following are statistics for Hazardous Material Authorization Forms which have been reviewed until end of June 2013 and hazardous waste shipped.

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Activities of Waste Management:

Inspected 8 shipping containers of hazardous waste at the point of originator that have been approved to be sent to Temporary Hazardous Waste Storage at MP32.

Facilitated PJP LIP in requesting pump truck to FM, in order to mobilize their waste oil to Dewatering Plant.

Gathered information for current condition at Kokarfi’s tofu and soy cake factory at MP38 and its process until production. Currently, this factory is not operated at MP38 due to unsafe work location and had been relocated to Timika area. However, due to water condition in Timika, this factory possibly will be relocated to PTFI’s work area. Theoretically, the wastewater from this factory can be treated at Sewage Treatment Plant (STP) if the flow rate and Biological Oxygen Demand (BOD) are not exceeded from determined quantity due to STP has maximum level of capacity and concentration for treatment.

Communicated with PT. PPLI for the type of waste when disposing used aerosol can and Safety Department for packaging them before shipping. The empty used aerosol can is categorized as used rags and can be placed in the used cube tanks and no ventilation is needed for shipment.

Met with Facilities Management WSW and SLD to review SOP – E 09-09 Wood Pallet Management and improving its handling. Several action plans will be taken for revising this procedure.

Conducted non-hazardous solid waste disposal observation in GRS Koteka Dump. Observed new laundry facility at Ridge Camp area before hand-over to Pangansari Utama. This

laundry uses ozone technologies developed by OTEK laundry system. Ozone is created via electrical discharge and gas injection into the water line into the bottom of the washing machine. This new system will reduce the wastewater and energy use. Several factors need to be ensured by Pangansari Utama, such as piping and wastewater generated due to STP at Ridge Camp is currently overloaded.

Discussed with SCM associated with shipping containers contains with bags of iron powders to be placed above magazine warehouse Grasberg as partitions to block falling rocks from the mountains. Several action plans will be conducted to determine the environmental aspects and impacts before the containers located at this warehouse.

Analyzed PCB for 38 samples of transformer oil from Concentrating Department and Grasberg Maintenance. Until end of the week 81% of oil transformer samples have been analyzed (164 of 202).

Attended a presentation and discussion of PTFI Biodiesel Utilization Plan delivered by PT BNE (PT Berjaya Nusantara Energy) at Dewatering Plant Porsite. Detailed proposal of biodiesel utilization plan at PTFI work areas will be created and send to PTFI by first week of July. PT BNE team also visited to PTFI Biodiesel Reactor Facility at MP21.

Collected 1 trash bag of used toner cartridge from MP68 Geotechnical Group.

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Provided advices to:1. Trakindo for managing their used toner/cartridges.2. KPI Marine for OWS station for having silt trap installed in the drainage and immediate fixing

the broken pump at the location to support the OWS.3. Responsible parties regarding permit for ship transporting hazardous waste, as the permit

will expired in next month. (July, 14 2013).4. Trakindo to pack their used fluorescent tubes into one shipping container with used rags or

slop oil.

Activities of 3R Programs:

Conducted safety pre-check of 5R MP66 Integrated Workshop with Safety Department. Forthcoming task is to hold re-check by Safety Department, Industrial Hygiene, Facilities Management Fire Engineering Service and Project Manager when the building progress reaches 90%. Overall progress of 5R MP66 Integrated Workshop was 82%.

Collected 27,000 liters used cooking oil from several Mess Halls at Highland area Replaced element filter at Kawiki Shop Biodiesel Refueling Station. Distributed 2 used cube tanks to MP72 Kenanga Mess Hall at Highland area to support their used

cooking oil storage.

The fFollowings are the volume of biodiesel and 3R souvenir produced until the end of June 2013.

EMS Documents

Main activities of Environmental Support: Environmental Management System

based on ISO14001 Environmental Emergency System Facilitate internal and external audits Waste Management 3R Programs Environmental Education for students Environmental Awareness for

employees and communities.

Biodiesel Project: PTFI is the first mining company establishing biodiesel project in Indonesia from used cooking oil as part of environmental beyond compliance effort. Biodiesel obtained from used cooking oil which is processed using esterification and trans-esterification method. Percentage of biodiesel is 5% and is being tried on 20 Light Vehicles.

HMAF: Method implemented by Environmental and Safety Department of PTFI to screen the purchase of hazardous materials.

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Updates on Environmental Management System Documentations:

Conducted inspection on original copy of EMS documents. Review and revised several EMS Documents:

1. SOP – E 09-17 Oil-Water Separator Management to include visual observation by permitted areas.2. COP – 16 “Equipment Maintenance and Calibration” and COP – 19 “Environmental Audits and

Inspections”. These two documents have been finalized and signed by Environmental Manager.3. SOP – E 15-01 “Preliminary Notification for Corrective and Preventive Action from Environmental

Monitoring Data Validation” with Environmental Monitoring Group on Thursday, 20 June 2013 for items needs to be revised to improve SOP implementation in the field.

4. SOP – E 09-09 “Wood Pallet Management” which has been added for several items for transportation

Legal and Other Requirements

As the vessel permit for transporting hazardous waste was due in July 14, 2013, Environmental Department discussed with KPI Marine Agency to propose permit renewal to Ministry of Transportation. The application of vessel permit for transporting hazardous waste has been submitted to Ministry of Transportation.

Figure 3 – Discussion with KPI Marine at Coastal Environmental Office

A total of 49 analytical result reports from Timika Environmental Laboratory for Oil-Water Separator (OWS) effluent sampling conducted on June 2013 were reviewed. Six of the monitoring results are above the permit standard; they are LIP Power Plant, MP74 Refueling Station, MP39 KPI Lube Shop, MP74 Power Plant AB, MP74 Power Plant C and MLA LHD Shop. Corrective sampling hadve been conducted before end of the month and the result met the permit standard. Several samples were not taken for five OWS stations due to the security reason (XC-9 Shop, XC-3 Shop and KPI East Levee Shop) and construction reason (MP66 Refueling Station and MP32 Refueling Station).

Activities related with legal compliance:

Conducted environmental investigation regarding the incompliance of the its effluent:1. OWS at LIP Power Plant was due to washing activities for parts after PM Engine Check Unit

# 4. The corrective sampling has been taken.2. OWS at MP74 Refueling Station was due to fuel guns valve which was not locked properly

in the afternoon causing leaking of diesel fuel which flow to drip pan first. However, since there was no employee working afterwards, the drip pan cannot hold all the leaking

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causing then flow to OWS. The OWS would be cleaned. 3. OWS at KPI Lube Shop MP39 was due to inappropriate practice, i.e., oil collected in lube pit

was pumped into drainage that reports to OWS and there was no communication among shop mechanics, SHE Representative, and supervisor regarding shop’s condition. The RCPA is being drafted.

4. OWS at MP74 AB Power Plant and C Power Plant was due to the lack of maintenance at these facilities due to the unsafe conditions at mine area.

5. OWS at MLA Shop owned by Underground Mine Maintenance effluent was due to inadequate maintenance of OWS.

Conducted weekly OWS observation to permitted OWS facilities. The result of observations has been communicated to area owner, such as:1. SHE Representative at MP66 KPI HD Shop to update their weekly inspection form.2. Sandvik LIP to clean up their OWS due to turbid effluent that showed during visual effluent

observation.3. LIP Electric Shop for no separation process (similar appearance at each chamber). Samples

from this station have been collected and sent to Timika Lab for further investigation. Conducted compliance permit audit for second quarter of 2013 at OWS of Amole Besar Shop,

Kasuang Shop, Kasuang Refueling Shop, Bukit Batu Shop, MNK-Orica GRS Shop, Toraja Shop, Ambon Refueling Station, Sandvik Shop, PJP Highland, MP66 KPI HD Shop, MP35 KPI Levee Maintenance, KPI Cargo Dock, KPI-HD Shop Portsite, permit for three vessels in shipping hazardous waste, Facilities Management Lowland area (five Sewage Treatment Plant (STP), one Leachate Treatment Plant (LTP), three Temporary Hazardous Waste Storages (THWS) and one permit related ground water utilization. Until end of the month (second quarter of 2013), permit audit has been conducted 100% and 89% permit findings have been closed.

Requested confirmation from PHMC and FM for the status of the Ministry of Health Decree No.492/MenKes/Per/IV/2010 regarding Requirements on Drinking Water Quality. It is confirmed that this regulation is used to monitor drinking water quality in Jobsite and all the required parameters have been monitored periodically; therefore, it can be registered as a required regulation to PTFI.

Requested degreaser SISKEM quotation from Trakindo LIP and distributed to the requestor. Completed the list of all of environmental permits requirements, and has been uploaded on

internal website. Evaluated several regulations:

1. Law No 4 Year 2009 (UU-4-2009) “Mining and Coal Mining”2. Government Regulation No. 78 Year 2010 (PP-78-2010) “Reclamation and Post-Mining”3. Decree of Minister of Environmental No. 128 Year 2003 (KEP-MENLH-128-2003) “Technical

Procedure and Requirement in Processing Petroleum Waste and Contaminated Soil by Petroleum Product Biologically”

4. Regulation of Minister of Transportation No. 52 Year 2011 (PER-MENLH-52-2011) “Dredging and Reclamation”

5. Three above regulations are required by PTFI except for Decree of Minister of Environmental No. 128 Year 2003 which needs to be further reviewed.

Completed the verification of five handbooks of environmental training related with environmental compliance issues which would be conducted by Quality Management Services.

Environmental Training

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Facilitated TOT meeting to evaluate SOP – E 09-28 Used Aerosol Can Management on Tuesday, 4 May 2013.

Environmental Awareness and Education Working with Schools

PTFI facilitated FKGPLH (Teachers Forum for Environment) members to started to develop Environmental education syllabus which will be used in next semester at elementary and middle schools. The draft was then discussed with Basic Education and Culture Office of Mimika.

Figure 4 – FKGLPH developed environmental education (left) and one staff of Mimika Environmental

Office introduced environmental program (right)

Activities of Working with School Program:

Facilitated one staff of Mimika Environmental Agency to visit SMAN 04 Entrop Jayapura to introduce environmental program to the students.

Facilitated environmental education activities for SMPN 2 by giving 61 used tires from workshop Stamford tires LIP and delivered 20 bags of Media Plant ‘TRUBUS’ for SDIT Permata Papua to support their Environmental Program.

Environmental Camp facilitation for 60 students and teachers of Yapis Junior High School at MP21 Reclamation and Biodiversity Center.

Bird Watching facilitation to 40 students from Ebenezer Junior High School, SMPN 3 Junior High School, Yosua Junior High School and ITB University at Rimba Golf Yard.

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Figure 5 – Bird watching at Rimba Gold for ITB University (left) and several Junior High Schools in

Mimika District (right)

Environmental Youth Club

Environmental Prince and Princess visited several places in Jakarta from May 29 to June 03, 2013. They attended the opening ceremony of Jakarta Environmental Exhibition and Green Village Inauguration at Cakung Barat sponsored by United Tractor, and visited Head Office of United Tractor and one Eco-school (SDN Bantarjati 9) in Jakarta.

Figure 6 – Environmental Prince and Princess with Minister of Environmental (left) and with staff

from United Tractor (right)

Working with Public Programs

We continued to supervise cCompost production by environmental cadres in Kuala Kencana, Bringin Village and Inamco Camp were continue to be supervised. During the month, 141 kg of organic compost was produced from Kuala Kencana.

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Figure 7 – Organic composting observation at Inamco Camp (left) and collection activity (right)

Other Working with the Public Programs:

Supported housekeeping activities by some residents. Presentation of PTFI Environmental Management to 25 participants from PNIEL Youth

Evangelical organization and Global Warming to 47 participants of YAPEDA organization. Involved in environmental exhibition in Jayapura and displayed several 5R materials, biodiesel

information and several activities from Environmental Department.

Figure 8 – Exhibition booth (left) and explanation of 5R products to the Head of Jayapura (right)

Environmental Event

Supported Environmental Day celebration in Graha Eme Neme Yauware Mimika which was officially opened by Bupati (Regent) of Mimika and in Otonom Office Jayapura which was officially opened by Governor of Papua. During the event, eight schools from Mimika District received the Adiwiyata Province award.

Figure 9 – Representatives received Adiwiyata for District Award (left) and for Provincial level (right).

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3R ProgramCollected a total of 191 recycled materials from LIP Fabrication and United Tractor and delivered to the approved contractor for recycling.

Environmental MonitoringTimika Environmental Laboratory

During the month, TEL received 321 COC which included 1,098 samples and 12,788 analysis. TEL also published 342 Analytical Reports which consisted of 1,212 samples and 12,328 analysiis. Turn Around Time for the month was 90.6% less than 2.4 weeks. There were 2 AR revision for the month (0.6%).

Laboratory instrument availability status is 93% which included one instrument under maintenance (automatic titrator), one unit ICP 3000 DV was waiting for contract finalization for vendor to come to site and one unit LECO 432 which was waiting for spare parts. New unit of TOC analyzer and FIMS installation was completed.

MoE certification for environmental laboratory was on hold by KAN until administration process was completed.

Environmental Monitoring Team

Endang BudiantoDeky LalaRomen RifianAbdul Haris

Environmental Monitoring programs: Surface water quality Groundwater Acid Rock Drainage Estuarine and Seawater Effluents Meteorology Rainfall Ambient Air Quality Mercury Stack Emission Continues Air Quality

Aquatic Fauna (nekton, benthos, plankton, mangrove invertebrate)

Fish Tissue Mangrove Bathymetry Sedimentation Sediment Quality Oceanography Toxicology

Turnaround time (TAT): one of the most noticeable signs of laboratory service and is often used as a key performance indicator of laboratory performance. TAT is number of day calculated from sample is received until analytical report is sent to customer.

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Sulfate sulfur project status is waiting for review from Contract Group and Sucofindo which mostly related to the proposed price per sample. Material and QC samples for this project have been collected and sent to Suciofindo.

Received samples categorized as Routine (59%), Special Project (20%), Compliance (10%), LTEMP (9%) and QC (2%). Six major customers were TRMP (33%), Environmental – Abiotic (29%), Environmental – Coastal (11%), DMQA (9%), Facilities Management (8%) and Reclamation (4%).

Abiotic Monitoring

Forty three (43) from total 48 OWS facilities permitted were monitored on June 2013, while two OWS’s were under construction (OWS-HLKBR-03 & OWS-LLKPI-17), two OWS’s with closed access/restricted area (OWS-HLUGAML-01 & OWS-HLUGAPT-01) and one OWS has security issue (OWS-LLKPI-15).

Figure 10 – Oil and Grease sampling from outlet of Underground OWS (left) and outlet of Grasberg

OWS (right)

Water quality monitoring included daily #57-Banti sampling, weekly DWP Effluent, biweekly Lower Wanagon sampling, monthly RKL/RPL Highland-Lowland rivers, monthly RKL/RPL Estuarine, monthly OWS effluents, monthly & weekly tailing discharge at compliance point, monthly ARD-74 Plant sampling, monthly Grasberg drainage, groundwater sampling at community wells, semi-annually Alpine regional, semi-annually Tsinga Beanagong rivers, re-sampling at Kuala Kencana domestic waste discharges and Golf course. Special projects sampling comprised of weekly #57 Geo Chemistry composite, effluent OWS sampling at AB Tunnel 2510, WDD discharge sampling, Mahaka flume sampling, Tsinganogong water sampling and biweekly spill sampling at MA205.

Continuous ambient air quality monitoring at Ridge Camp, MP74 and Cargo Dock stations included routine analyzer performance check and maintenance at Ridge Camp, MP74 and Cargo Dock stations. The NO analyzer at MP74 station hass a problem with cooling chamber and ozonator,

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while CO analyzer at Ridge Camp and Cargo Dock showed unstable readings. Vendor is scheduled to visit to resolve those issues.

Other air quality monitoring activities comprised of noise level monitoring at Base Camp, Portsite, TPRA and Ridge Camp; dust fall monitoring at 4 locations around ModADA; and particulates sampling using High Volume Air Sampler (HVAS) at Amole M74, Ridge Camp, BMKG and Cargo Dock. There was no air emission monitoring conducted during the month due to mine operation and production were temporary stoppageed.

Meteorological activities included daily data updates and review, maintenance of rainfall stations at Met-04 BMKG by fixing the power converter and network communication link trial, and data collection from rainfall stations at Urumuka HP01 & HP04. Data captured from existing meteorology and rainfall stations was 100%, except for Met-04 BMKG which only 90% captured.

Continuous ambient of mercury monitoring activities included routine maintenance and calibration of Mercury analyzer (checked denuder, filter and Argon gasses) with 100% data captured. Repair of lamp indicator of mercury analyzer 2357AB is waiting lamp indicator part as no available stock. Mercury survey in Timika using Lumex mobile analyzer was conducted with high mercury concentrations observed was 43 ng/m3 at Gorong-gorong (Toko Mas Pak Haji) and 137 ng/m3 at Padat Karya Street (behind of Serayu Hotel).

Updates of some environmental abiotic monitoring projects were as follows: Study-A project for river hydrology at Banti area (#56 and #57) comprised of bed river profiling

(twice a day), flow measurement (twice a day), daily data updating, and water samples collection (4 samples a day).

Helipad and Wind-Sock project was still in material order process. Total material in stock was 100% and the work would be started when condition isf favorable.

Urumuka project comprised of removing monitoring teams and remobilization security teams and important materials from HP 04 and HP 05; field data updating (rating curve, automatic water level gauge, etc.) at HP-01; biweekly data downloading and supplies delivery; and water sampling for suspended solid tracking. During the month, there were six (6) visitors from MWH and seven (7) visitors from Aurecon to conduct survey for transmission line and water transportations for construction plan. Flow measurement recorded were: minimum flow of 108m3/s, maximum of 460m3/s and average of 197m3/s. River profile measurements at HP 01 showed minimum water level (WL) observed was 24 cm and maximum was 241 cm.

Continued isotope rainfall sampling as requested by BMKG - Columbia University.

Total number of samples collected during the month was 390 and YTD highland water quality monitoring sampling achievement was 41 % versus from 42 % targeted.

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Coastal and Marine Monitoring

Land clearing and excavation works of Ajkwa alternative channel phase II has reached 200 meters out of 600 meters total length targeted. This project is required to temporarily provide access for local people from the East (Omawita, Fanamo, Otakwa, Jilla, etc) and Government officer to cross Ajkwa Estuary during low tide. It also provides temporary access for company to conduct environmental monitoring activities at eastern areas.

Figure 11 – Excavation of Ajkwa alternative channel phase II by PT. Ejore Amiete Papua

The activities of aquatic biological monitoring included nekton sampling by trawl net from 13 monitoring stations (EM330, EM332, EM275, EM276, EM281, EM270, EM274, EM430, EM432, EM770, EM773, EM870 and EM871); estuarine benthos sampling and sorting of 10 out of 15 stations; preparinged the benthos sediment samples prior to analysis; completed the estuarine invertebrate’s identification under supervising of invertebrate expert from Australia (John Short); metals in tissue samples processing from routine samples and freshwater fish from ModADA and SP1; and conductinged fish test acclimatization, acute test at S255 (tailings river), cadmium test and drafted bioassay protocol for organic matter testing.

Coastal Geomorphology monitoring comprised of bathymetry measurement in the Ajkwa estuary and cross section 2 (CR2), while CR3 and CR4 could not be reached by boat due to low tide condition; tide recording in three sites (Ajkwa, Tipoeka and Cargo Dock); reviewed the high mercury concentration in sediment from Kamora rivers system and collected the secondary data from exploration study; and storm water samples collection.

Total samples collected during the month was 416 samples, with YTD coastal and marine sampling progress at 1,837 or 56.7% from 47.5% of YTD target.

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During the month, boat availability was 83 % with two boats were under maintenance (Mawiro was in dry dock due to engine replacement and Kopero for body repair). Boat utilization is 100% with total boat request in the month was 80 trips of boat requisitions served.

Updates of some environmental coastal and marine monitoring projects were as follows: Ninety two percent (92%) or equal with 46 hectares out of 50 hectares target of dead trees at

Mile 15–17 area (Ajkwa Diversion Channel) have been cut by PT. Srikandi Mitra Karya. Continued area clearing, material pilling and channeling works which the total channel length

achieved was 200 meters out of 600 meters targeted.

Reclamation and BiodiversityHighland Reclamation

Ten (10) plots of slope area in Blitar 4030L and in Tembagapura along the stream affected by erosion or landslide have been reclaimed using hydro-seeding. The materials used were GFM 200 bags, 100 bags of bactosoil, omega biosol 100 bags, 20 kg of vermonia vitex, 20 liters of vermonia vodria, 20 liters of wallichi schima, 5 bags nursery coats, 50 bags seed of Deschampsia klossii, and 50 bags of moss.

Figure 12 – Hydro-seeding Activity in Blitar 4030L area (left) and Tembagapura River (right)

During the month, there was no reclamation activitieswere no revegetation activities in Grasberg Area due to no surface area available to be planted.preparation for reclamation. YTD reclamation progress was 11.87 hectares (29.68%) out of 40 hectares as the internal 2013 reclamation plan target.

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In June, Highland Reclamation group propagated 3,400 clumps of Deschampsia klossii grass and prepared of 3,700 coco-pots of propagation media in Grasberg nursery. Total number of plant stocks in Grasberg Nursery wereNursery were 79,632 clumps of Deschampsia klossii grass and 4,390 seedlings of local sub-alpine shrub.

Fifty four (54) plots were monitored in June 2013 included of tens (10) plots in OGD, fifteen (15) plots in Middle Wanagon, three (3) plots in Bali Area, two (2) plots in Blitar Area, twenty (20) plots in Lower Cartensz, one (1) plot in Upper Cartensz area and two (2) plots in Mega shop area. Total 172 of 282 reclamation monitoring plots were completed.

Lowland Reclamation

Reclamation activities in double levee was re-activated at the 2nd week of June 2013 by plantinged 200 sago palm seeds in 3.8 hectare and prepared 4.4 hectare planting area. Meanwhile, Waii Island recalamation was re-started in 3rd week of June by plantinged 27,000 propagules of Rhyzophora mucronata and collectinged 8,000 propagules and 1,300 seedlings of Avicennia marina.

Lowland reclamation programs included planting 3,280 seedlings of vegetables, propagated 1,600 seedlings of agriculture crops and 891 seedlings of local tree species in MP21 nursery, and harvestinged 420 kg agriculture crops that were cultivated in the MP-21 tailings agriculture demonstration area.

Other lowland reclamation programs consisted of maintaining the reclamation plants by cutting grass covered 18.6 hectares, planting legumes crop to cover 1.10 hectares for erosion control, fertilizinged 4,860 trees and maintained 118 trees inside double levee.

Cattle ranch activities were routine maintenance, planted 4.3 hectares of king-grass in cattle ranch area (inside double levee). The existing cattle population is 66 head, with two of calves was born in the month.

Reclamation and Biodiversity Team

Pratita PuradyatmikaArie MandessyRobert Sarwom

Local Contractors: PTFI reclamation and biodiversity program was supported by 38 local contractors that working at Highland and Lowland areas.

Main activities of Reclamation and Biodiversity: Reclamation Hydro-Seeding Nursery Composting Agriculture crops Cattle ranch Biodiversity

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Figure 13 – Agriculture activities at MP-21 tailings agriculture demonstration area

During the month, a total of 58,575 kg compost was produced, comprised of 1,200 kg of vermin compost from Borobudur Tembagapura, 3,375 kg compost from MP-38 and 54,000 kg compost from MP-21.

In June 2013, the number of local plants species propagated in MP32 nursery for Kuala Kencana Land remediation Program were 495 trees consisted of 375 iron wood, 985 matoa, 132 trembesi, and 3 boat trees. Total stock in Nursery MP-32 were 38,796 trees consisted of 25,618 seedlings of iron-wood (Intsia bijuga); 6,400 seedlings of matoa-tree (Pometia piñata); 3,837 seedling of trembesi-tree (Samanea saman); 1,135 seedlings of milk-tree (Alstonia scholaris); 827 Cina-tree (Podocarpus amara); 778 seedlings of boat-tree (Octomeles sumatrana); 93 seedlings of Lawang-wood (Cinnamomum cullilawan); 28 seedlings of Nem-wood (Azadirachta indica) and 80 Buah Merah (Pandanus conoideus).

YTD reclamation achievement of Kuala Kencana Land Remediation was 4,806 trees which covers 12.02 ha out of 85 ha for the target of Phase III in 2013 (May 2013 to April 2014). Total maintenance was 30,189 trees which cover 75.5 ha and YTD achievement in June 2013 was 33.12 % out of 365 ha as target.14 ha.

Biodiversity

PT. Freeport Indonesia represented by Andi Mukhsia, Vice President of Environmental Department, receivedpt “Indonesian Green Award for Biodiversity Conservation Program Category” that was held by La Tofi School of CSR.

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Figure 14 – VP Environmental Departprtment received Indonesia Green Award (left) and

Biodiversity’s crew wrapped up charcoal into sacks for plant maintenance (right).

During the month, other biodiversity activities were as follows:

Visited the Indonesian Science Institute (LIPI) and discussed about ecosystem diorama re-construction.

Participated in training of “GIS Analysis for Strategic Environmental Assessment for Mimika Regency spatial plans” held by IFAC-USAID and Mimika Government.

Conducted fauna monitoring program in double levee with participated by 4 internship students from ITB on this work.

Monitored mammals, birds, reptiles, butterflies, insects and amphibians from eleven (11) of monitoring locations.

Deepeneding of the lake in NSDP MP-21.5 to obtain water using excavator was 50% complete. Produced charcoal for orchid planting media by utilize dead trunk surrounding MP-21. Collected ornamental plant species from surrounding Kuala Kencana forest and planting in

Ornamental Plant Botanical Garden MP-21. Discussions with Resit Sozer of PPSC Cikananga (West Java) with the topics relating to the

repatriation of animals of Papua Bird-watching activity at Rimba Golf Kuala Kencana involving 3 junior high school in Timika and

attended by 30 students.

Jakarta Environmental AffairsParticipation on symposium/workshop/other event Participated in the Environmental committee of IMA to discuss and prepared IMA’s position to the draft

Ministerial Decree on Mining Effluent Standard and Air Emission. Participated in the technical workshop on Reclamation and Mine Closure facilitated by the Directorate

General of Mineral and Coal Mining of MEMR. Participated in the socialization meeting of PTFI 2013 budget to the Governor of Papua, in Bali.

Jakarta Environmental Affairs Team

Fajar MulyanaMurni SihiteHendrikus Parlan

Main activities of Environmental & Technical Affair: Environmental Affair Environmental Reporting Data Management & Quality Assurance

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Reporting and Management System Continued to compile and review the Q1-2013 RKL-RPL reports. Updated 2012 environmental fact sheet that was requested by Corporate Communication Department

to be published on the External PTFI Web. Prepared presentation materials for Tailing Communication Forum that will be conducted at jobsite on

1-2 July 2013 in Timika.

External Meeting of Environmental Affairs

Title Subject Description

GOI Meetings

Mining Effluent Standard, Stationary Air Emission Standard and Update onthe Latest B3 Wastes Draft Regulation.

Participated in the Environmental committee of IMA to discuss and prepared IMA’s position to the draft Ministerial Decree.

Tailing Concrete Trials Participated in the meeting with Road and Bridge Research Centre, Ministry of Public Work ministry to discuss the latest update on tailing concrete trials.

Institutions / Universities Meetings

Review Draft Proposal From PT LAPI ITB.

Participated in the meeting coordinated by Govrel to review draft proposal from PT LAPI ITB to assist PTFI on Long Term Plan of CoW B.

Tailing Concrete National Standard

Met with Polymer Research Center of BPPT to update the latest progress on tailing polymer for Tailing Concrete National Standard.

Other Meetings

Managing Used Tire Wastes

Met with a potential vendor to discuss option for managing used tire wastes. We requested that the vendor provided a more workable proposal for further review.

Visitor USAID and IFACS visited jobsiteonsite for Carbon stock inventory project. The aims are to establish

collaborative natural resource management in southern Papua wetlands that include the second largest contiguous block of mangroves in the world. Scope of work is to reduce deforestation and Green House Gases emission

John Short, a crustacean expert from Australia, conducted crustacean specimen re-identification from 2011 – 2013 samples and held crustacean identification training for Coastal staffs.

Engineer representative of Magna Sardo (M. Fadhil) is on site for LECO 632 repair and maintenance. MWH & FCX team visited to Urumuka Hydropower project site Happold Consulting team visited jobsite for presenting work plan of Coastal Management Plan

project and to discuss baseline design of tailings reclamation area. Tiga Macan and Rukindo company representatives were invited to jobsite for introduce company

profile, to conduct field observation and to discuss dredging work plans for shipping channel and tailingsAjkwa Estuary.

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PT BITA Bandung visited to jobsite for baseline of air and water quality sampling in association with the AMDAL of Water Treatment Plant for Mimika Regency.

Mr. Shaun Levine from Global Political Consulting Firm of Eurasia Group visited MP-21 area. Mr. Cyprianus Anto Saptowalyono and Mr.Erwin Edhi Prasetyo from Kompas visited MP-21 area. Wahyu Utami (Deputishipi III, KLH/Environmental Ministry), La-Ode Syamsul Imam (IPB/ITSL),

Kadoarjuna (BPSDLAH PROV) and Yohanes Laurens (BLH, Kab. Mimika) visited MP-21 area.

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Figure 15 – Tumpal Sinaga presented Reclamation & Biodiversity activities (left) and Barnabas Murib presented Reclamation & Biodiversity activity (right).

Environmental Project Status

Project Title Project Description Status June 2013

ARD Management Managed, collected and treated ARD.

Target has been achieved. Flow from WDD is significantly influenced by rainfall and varied from 6,500 to 7,000 gpm last month.

24” HDPE installation progress last month was 50.57%, slow progress as the project is suspended associated with Big Gossan incident

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Lower Wanagon Overburden Management

Safely and effectively managed overburden placement

Cumulative progress Wanagon project productivity was 30.04% below from plan of 50.04%. MW4150 unloading continued at 4045L and productivity at MW4150 was about 17Ktpd (Load&haul 13Ktpd and dozing 4 Ktpd), excavator continued project grading of final slope to 26 degree at 4105-4060L with update progress resloping = 0.7 ha from target = 4.10 ha. At LW3845 project, continued dozing/unloading at 3775L to 3760L at south side LWU resloping project. June'13 productivity was about 595Kt (26Ktpd). Shovel productivity was 13Ktpd and 8Ktpd for dozing.

A construction and installation of 4ea HDPE pipe 24” to drain clean water at berm#3 has been completed. Installation of 3ea HDPE 24" pipeline at berm#1 was continued.

Continued dumping material at berm#2 from sh#03 or excavator to leveling berm height until meet design at east side of berm, remaining material required for final construction berm#2 approximately about 6Kt.

Tailing Management Safely and effectively managed tailings deposition in the ModADA.

Completed levee construction by 1.6 million m3 of loose material at an effort rating of 36.4 million m3km.

Planting 17.4 ha on bio-retention for the area within 100 meters of the Levee Embankment.

Planting 1 ha of vegetation on the upstream slope of the Levee Embankment.

Build 9.2 km of series of stream deflection channels to increase tailing retention at ModADA in order to meet with KepMen 431 associated with total suspended solid parameter.

Kwamki Lake System Drainage Enhancement

Minimized the impact of water from the ModADA on sulfate concentration in groundwater for drinking waters downstream and surrounding ModADA.

Ongoing, water level and water quality data are being incorporated into the model.

Improvement of Dewatering Plant’s Effluent and Drainage System

Quantified, evaluated and mitigated where necessary high TSS discharge from Dewatering Plant in Portsite and to improve drainage system of Dewatering Plant

Piling delivery and piling preparation for welded connection are on-going. Piling contractors are on site and driving piles (131 started, 28 completed). Engineering, site survey, and old concrete demolition are on-going.Q2 = 540 m3

’13 YTD = 904 m3

PTD = 7,335 m3

Area 3C concrete completed.Area 4A excavation in progress.

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Tailing Utilization Increased tailing utilization at PTFI work areas and Province Papua in order to support infrastructure.

The standard concrete cube trial is continued with the newest best performance polymer formulized by STP-BPPT with the compressive strength of concrete: 20 MPa, 25 MPa, 30 MPa, and 35 MPa respectively. The trials need 28-days for every tailing concrete tested.

The phase of work with BPPT and Public Work to obtain SNI on tailing concrete from Indonesian National Standard body will be initiated once the trials have been completed. Service contract is being considered to other consultant option.

Energy Efficiency and Conservation Plan

Continued development and implementation of a site energy efficiency and conservation plan.

Meetings had been conducted and Energy Manager had also been appointed but there is still no progress on the specific item.

Sedimentation in the Ajkwa Estuary

To ensure that there are available transportation alternatives between the east side of the Ajkwa estuary and the Timika area, even during low tide.

Ajkwa channel project phase-2 has been started. Conduct Ajkwa channel dredging as long as 150 meter from 600 meter have targeted.

Oil Water Separator (OWS) Improvement

To achieve greater consistency of effluent quality standard that conforms to the permit requirements. The permit requirement that applies has been determined to be 50 mg/L of Oil and Grease in the effluent.

Contract to have consultant (Nusantara Water Centre) to review 45 OWS facilities at jobsite has been approved by Management.

Resolution of NOx Emissions from Diesel Power Plants

To resolve NOx emissions from diesel-fueled generator plants to meet GoI regulation standard.

Proposals from two vendors have been received. The decision will be made in July.

Map

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