Antam conducts its mining activities by taking into account the impact mining can have on the environment and the surrounding community. Environmental sustainability, and proactive community development are viewed as necessary elements of successfully operating a mine. Doing the right thing, as opposed to only focusing on financial profits is good for the environment and the local communities and finally aids in the development and continuity of the business. Therefore, Antam’s environmental management aims to meet or beat applicable laws and regulations and standards. Antam’s approach to community development is participatory and proactive. Antam aims to develop communities surrounding its mine sites by working closely together with all concerned parties, whether they be employees of the mine, community leaders or local and regional governments.

Environmental Management
Antam’s environmental management policy is to ensure that all laws and regulations and standards of environmental management have been fulfilled by each business unit. In this regard, two of Antam’s main business units, Pomalaa and Pongkor have obtained ISO 14001 environmental management certification.

In 2003, Pongkor gold mine installed an additional detoxification process to better manage gold smelter waste from the plant. The objective is to further reduce the toxicity, facilitate waste neutralization, as well as to reduce the use of neutralizing substances.

Environmental management and surveillance activities.

Under existing Indonesian legislation, Antam is required to rehabilitate its exploited mine sites. Antam’s rehabilitation programme for its exploited mine sites commenced in 1990. By the end of 2003, Antam had rehabilitated approximately 2,813 hectares. As at 31 December 2003, the total provision for environmental protection and rehabilitation was Rp54 billion. The amount of rehabilitation in 2003 was 16% less than the 2002 as Antam suspended rehabilitation activities in previously mined out locations that still may contain economically viable minerals, in line with recent demand from certain customers.

Antam’s rehabilitation programme consists of leveling a mined area (which has been filled with overburden), replacing the topsoil, grading and planting trees and ground cover. Antam expects to rehabilitate a further 221 hectares in 2004. By the end of 2006, Antam expects to have rehabilitated a total of 3,660 hectares.

In 2003, Antam spent Rp19.5 billion on environmental management and surveillance. This amount is an increase of 60% compared to 2002 due to the reclassification of the cost of nickel slag management from a production cost to an environmental cost.