ENVIRONMENT ASPECTS ON COAL MINING IN INDONESIA Forest Reclamation In Post Mining Land Forum - Japan International Forestry Promotion

04 February 2016

By : Delma Azrin

CONTENTS

• Introduction• Mining Location in Indonesia • Mining Characteristic • Legal Instruments • Environmental Programs in Coal Mining • Challenges and Opportunities• Clossing

2

INTRODUCTION• Mining as one of Natural resources-based industry is

Indonesia’s absolute comparative advantage for the countryeconomic development.

• Based on the National Constitution - UUD 1945, the naturalresources are managed by Government for the welfare of thepeople of Indonesia.

• Many of coal & mineral resources are located in forest area.• Government of Indonesia plan to increase the demand of

electricity to support an economic growth by utilisation of coal indomestic through Domestic Market Obligation (DMO),particularly when 35 GW power plant already in fully operation

• Coal is not just a commodity, it’s an energy for national growth

FACTS & FIRGURES

4

Energy Mix of Power Generation General Planning of National Electricity (Draft RUKN)

2015-2034

5

INDONESIA COAL PRODUCTION PLAN

6

Source : MEMR

INDONESIAN COAL EXPORT 2015

7

Existing Coal Mining Group Player (based on the license)

8

LAND OCUPATIONS IN INDONESIA

9

Dar

atan

Ind

ones

iaW

ilaya

h H

uta

n

HP

HC

agar

Ala

mH

utan

Lin

dun

g

Wila

yah

EK

SPL

OIT

ASI

Tam

bang

& I

nfra

stru

ktur

Tam

bang

Per

tan

ian

Tam

bak

Uda

ng

Htn

Tnm

n In

dust

ri (H

TI)

Per

keb

unan

198

120

66

20,5 33,5

2,0 0,135 0,06

13,44,5 4,7 3,8

0

20

40

60

80

100

120

140

160

180

200

Sources: 2002

DJGSM, Kemhut, Media

COAL MINING NOW

11

MINING INDUSTRY LOCATIONS IN INDONESIA

RESOURCES : 120.5 Billion Ton

RESERVES : 31.4 Billion Ton

Very High (> 7.100 kal/gr)

Low (< 5.100 kal/gr)

High (6.100 - 7.100 kal/gr)Medium (5.100 - 6.100 kal/gr)

Sorces : Badan Geologi, KESDM, 2013

COAL RESOURCES IN INDONESIA

12

CHARACTERISTIC OF MINING IN INDONESIA

13

14

MINE LIFE TIME

Guaranteed Reclamation Fund

Preliminary Detailed Mine Production, Processing, Marketing,

Exploration Exploration Feasibility

+

$

-

Avg. Time 8 yrs 4 yrs 2-5 yrs 5-10yrs

Fund

Guaranteed Closure

Mine Site Rehabilitation

Min

e C

losu

re

5 - 40 yrs

Speculative Capital

Investment

Sales

Operating Revenue / Profit

15

Reclaimed area

OPEN PIT COAL MINING

MINING RELATED REGULATIONS IN INDONESIA

Mineral & Coal Mining Law no4/2009

Forestry Law41/1999

Water ResourcesLawno 7/2004

EnvironmentLiaw no 32/2009

Spatial LawNo 26/2006

PP 22/2010Wilayah Pertambangan

Permen 28/2009: Usaha Jasa Pertambangan

Mining Industry

Reclamation & PostMining Docs

PP 23/2010Pengusahaan Tambang

PP 78/2010 Reklamasidan Pascatambang

PP 55/2010 PembinaandanPengawasan

Permen LH no 03 /2014Pprogram Proper

PermenLH no 05/2012Usaha yang Wajib Amdal

PermenLH no 13 / 1995Baku mutu emisi sumberTidak bergerak

PermenLH 113/2003Baku mutu Air LimbahTambang Batubara

PP 27/2012Izin Lingkungan

PP 101 / 2014 Pengelolaan Limbah B3

PP 76/2008Rehabilitasi danReklamasi Hutan

Permenhut No. P.60/2009Pedoman KeberhasilanReklamasi

PP 26/2008RTRWN

PP 42/2008Pengelolaan SDA

PP 43/2008Air Tanah

PP PPRPenyelenggaraan Penataan Ruang

PP 33/2014 : PNBPPenggunaan K Hutan

Permen PUN 11/2006Kriteria dan Penetapan Wil Sungai

Permenhut No. P.16/2014Pedoman IPPKH

Permen 07/2014Reklamasi dan

Pascatambang

Permen 1211k/1995Pencegahan PencemaranLingkungan Tambang

Permenhut No. P.87/2014Pedoman Rehabilitasi DAS

LEGAL INSTRUMENTS

National Constitution Year1945

• National Law No. 41 year 1999 For Forestry

Government Regulation• Number 76 year 2008 on Forest

Rehabilitation and Reclamation• Number 78 Year 2010 on Mining

Closure and Reclamation• Number 26 year 1999 on Analysis

Environmental Effect • Number 24 year 2010 on Utilization of

Forest Areas• Number 27 year 2012 on Environment

Permit and EIA

For implementation in the Field from start to mine closure; EachMain Stakeholder (Energy and Mineral Resource (ESDM)Department, Forestry Department and Environmental Department)Made the guidance for planning, action, evaluation andmonitoring activities)

• National Law No 4 Year 2009 For Mineral and Coal Mining

• National Law No. 32year 2009 For Environment

REGULATION UPDATE

• Law No. 23 of 2014 : Local Authority

Mining activities can only be administered and governed by Central Government and Provincial Government

Central Government: CCoW (PKP2B) Mining Authorization (IUP) owned by foreign shareholders

Provincial Government: Mining Authorization (IUP) previously administered by Regency (Kabupaten)

18

TECHNICAL DOCUMENTS

Mining Activity

Feasib)ility Study

EIA (Environment

Impact Analysis)

Mine Closur Plan

5 Year Reclamation

Plan

19

• Annual Work Program & Budget• Annual Technical and

Environment Plan (RKTTL)

Need approval from Government

20

MINING FEASIBILITY STUDY

Manpower

FinancialMine Plan

Mining Methods

Geologycal Conditions

Mining Equipments

Safety & Environment MarketingProcessing

Technology

Mineral/Coal Can Be

Economically Mined

21

ENVIRONMENT STUDY & PERMIT

General Survey Exploration Feasibility Study Operation

Submit Reclamation PlanDocument On Exploration

Submit Mine Closure Plan Document

Exploration Mining Permit Production / Operation

Mining Permit

Submit Reclamation PlanDocument On Production

REHABILITATION PLANINTEGRATED TO MINE LIFE PLAN

Based on EIA (Env Documnent) that has been approved

MINED LAND MANAGEMENT

Land Stabilization:

Land reconstruction

•Sloping, •leveling, and•back filling

•Top soiling,•Compaction

Site Preparation

Construct Erosion Devices

Planting cover crops

Planting (Revegetation)

24

POST MINED REHABILITATION

Erosion Control : riprap

WetlandVegetative treatment 25

MINE WATER MANAGEMENT

Sediment Pond Maintenance

STORAGE REUSE TRANSPORTATION RECYCLE DISPOSAL

HAZARDOUS WASTE MANAGEMENT

26

Used Oil For ANFO - Blasting

Used Oil For Energy Recovery

27

BIODIVERSITY

• Revegetation Program : local and native species • Contribution to carbon capture• Establish micro climate : support flora and fauna

restoration back to origin habitats

ENVIRONMENT MONITORING

28

• Based on AMDAL (EIA) : All of environmental aspects management, effort and monitoring result are required to be reported regularly to authority (Quarterly)

• Regular inspection from authority (Mine Inspector, Env. Control Agency, and Forestry Officer)

Water Quality Tets Air Quality : Emision Test Laboratory Tets

SOCIAL RESPONSIBILITY

Agriculture

Community Health

Fisheries

Education

SANCTION

1

WrittenWarning

2

Termination of partial or

whole mining activities

3

Mining Permit

Revocation

Administrative penalty is in form of mining permit revocation applied for mining companywhich does not carried out their responsibility to conduct environment programimplementation until the end of temporary penalty termination of partial or whole miningactivities.

30

CHALLENGES & OPPORTUNITIES

• Mining operation should create benefits to thestakeholders such as: local community, local and centralgovernment, employees, share holders and others.

• Mining to protect Forest that has unique ecosystem andimportant function to support local, national, globalenvironment.

• Mining in forest land should not be seen as threat orsource of deforestation and degradation, but throughimplementation of Good Mining Practices, may improveforest condition.

GOOD MINING PRACTICES vs CLIMATE CHANGE

Fast Growing Forest Plantation

Bio-diversity Recovery

Oxygen Production

Carbon Sink

Restore Forest Ecosystem

Stabilizing Land And Slope

Improve Soil Condition

Better Planting Material/Good Quality Seedling

High Quality Species (Timber And Non Timber)

Avoiding Hazardous Risk

Erosion And Sediment Control

Text in here

Text in here

Text in here

Energy, Mineral, Coal and

Forestry, a Symbiosis for Sustainable

National Development ”

Conclusion

CONCLUSION

CLOSING• Indonesia has various natural resources can play an important role in

providing mineral, coal, as well as forest products and services, which aredesignated for the welfare of its people and the global community.

• Characteristic of coal mining in Indonesia: shallow of coal reserves, so ithas the potential to interact directly with other natural resources utilizationon the land surface (Forestry and the Community land)

• Mining requires huge capital, long-term return on investment, high risk,affect local social and economic growth, so that the implementation ofmining activities must have concern on environmental especially to avoiddeterioration of forest and other natural resources, through implementationof Good Mining Practices (GMP)

• Mining tends to alter the original landscape, reclamation must be done immediately to restore the ecosystems and can improve the quality of the environment to other re-designation function in accordance with economic, ecological and social development.

TERIMA KASIHありがとうございます