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Sustainability Report

Year 2007

Operating Sustainably
Corporate Profile
Please see page 8

Corporate Policy, Corporate Governance, and Management System
Please see page 16

Sustainability Performance
Please see page 24

Table of contents
H IGHLIGHT INTROd UCTION : A CL O S E R LO O k AT T H I S REPORT L ETTER FROM TH E BO A Rd O F C OMMISSIONERS L ETTER FROM TH E BO A Rd O F d I R E C T O R S CORPORATE PRO F I L E : INTRO d UCING A N TA M ANTAM IN BRIEF ANTAM IN FIguRES 2007 CERTIFICATION ANd ExTERNAL ACkNOWLEdgEMENT OPERATIONAL ANd dEVELOPMENT AREA POLICY, C ORPOR AT E G O vE R N A N C E A N d M ANAGEMENT SY S T E M IMPROVINg THE CORPORATE gOVERNANCE ANd MANAgEMENT SySTEM IMPLEMENTINg AN INTERNATIONAL STANdARd MANAgEMENT SySTEM STAkEHOLdER ENgAgEMENT 1 3 S U S TA I N A B I L I T Y P E R F O R M A N C E FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE 4 6 8 9 12 13 14 16 17 22 23 SOCIAL EMPOWERMENT IMPLEMENTINg HuMAN RIgHTS THROugH COMMITMENT ANd EduCATION BuILdINg SuSTAINABILITy TOgETHER WITH COMMuNITy RESPONSIBILITIES TOWARdS PROduCT IMPACT CROSS REFERENCE WITH GRI (G3) C O R P O R AT E I N F O R M AT I O N 24 25 29 46 53 54 60 62 69

Highlight
Economy We are a diversified, Indonesian, vertically integrated, mining and metals company. Our main goal is to create shareholder value by getting bigger and better and doing it in a sustainable and correct way. Our sales grew 113% to Rp12,008 billion in 2007, and with a moderate cost increase, net profit rose 230% to Rp5,132 billion (US$562 million) with a 230% increase in EPS to Rp538.08 compared to Rp162.79 in 2006. Inline with increased production and commodity prices, as well as smaller increase in ferronickel and nickel ore costs, our financial performance in 2007 was a record breaking figure in the history of Antam. Our net margin of 43% was the highest in the Indonesian mining industry and outperforming most of our peers. The year 2007 can be characterized as year of exploration for the next growth phase. It was a milestone year as Antam began the commercial operation of the FeNi III smelter and inline with the strong cash flow, we were ready to invest for a better future. Antam has a large, high quality nickel and bauxite reserves and we plan to create the most value from our reserves and resources through our solid project pipeline in the years ahead. Environment Antam’s commitment to proper environmental management was reflected in the corporate restructuring. We formed a specific department at the Head Office to manage environmental and post mining strategic issues. Antam’s efforts in the proper environmental management implementation were also reflected by obtaining the ISO14001, an internationally accredited environmental management certification. Antam’s efforts to operating with the least impact on the environment were reflected by adopting recycling process. Antam recycled water and utilized backfill method at the Pongkor gold mine. At Pomalaa, Antam reused the sludge oil at its ferronickel furnace. In 2007, Antam also focused on improving its reclamation initiatives.

Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam 2 Social Antam is committed to participate in the community development surrounding its mines by utilizing the Community Development program. In 2007. Target and Achievement 2007 Target Operational Process (Productivity) Nickel Gold (Pongkor) Precious Metals Refinery (Logam Mulia) Operational Risk Regulation and Environmental Process Work and Safety Health Score GCG Index Mine closure (On Time Schedule) Effectiveness of Community Development & Surrounding Community Program Employee skill and competency % of HR Composition Best Practices Indicator Unit tonnes/employee/day gram Au/employee/day kg dore/employee/day Zero Fatal Accident Index Percentage Percentage 2007 Target 0. the Partnership Program.antam. an increase of 30% compared to 2006 on employee education and training. an increase of 69% compared to 2006.59 0. and the Environmental Development Program. Antam spent Rp28 million.0319 7.07 55 100 Percentage 100 107 Sustainability Report 2007 www.980 2 82.0309 7.com . Antam spent Rp55 billion on community development activities.795 0 80 50 100 2007 Actual 0.37 0.

This report aims to provide clear and transparent information to our stakeholders on what we did and commit to do towards sustainability in our operations. the format follows the framework set out by the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines G3.antam. We believe your opinion will help us to reach our goal in implementing a world class sustainability initiative. especially in the areas of economics. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information 3 Introduction: A Closer Look at This Report The 2007 Sustainability Report is our third yearly presentation of the summary of our contribution to sustainable development. This report presents information related to the sustainable development practices at all of our business units. We would be pleased to hear any question or feedback to further improve our report in the future. www. For the second time. We believe the framework will be useful as a reference for the information contained in this report.Policy.com Sustainability Report 2007 . environmental management and community development.

Wisnu Askari Marantika Komisaris Utama From left to right: Prof..antam.com .Sc..Sc. M.Sc.” Ir. Ir. Sustainability Report 2007 www. Supriatna Suhala. Irwandy Arif. Suryo Suryantoro. M. M. Ir. Dr.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam 4 Letter from the Board of Commissioners “We are integrating the sustainable development concept into our activities. Ir. Wisnu Askari Marantika. Ir.

Irwandy Arif. gold at West Java. M. Ir. Wisnu Askari Marantika President Commissioner Ir. our main commodity. and nickel ore deposit at Southeast Sulawesi and North Maluku. We are hopeful this report can be useful as part of our communication and transparency to our stakeholders. We highly value the social license given by our stakeholders and aim not to revoke it by ensuring a proper environmental management and social development. Independent Commissioner www. The mineral potential at the eastern part of Indonesia is huge as it contains 81% of Indonesia’s mineral deposit. M. The vast. Cikotok and Cilacap. environmental and social development are not merely words. The Indonesian archipelago is well known for its vast and rich mineral resources with its location at the Pacific Ring of Fire. We are integrating the sustainable development concept into our activities. Commissioner Ir. The deposit of nickel. Commissioner Prof. Antam seeks to find new deposits to sustain its business. Antam’s mineral deposit is spread throughout Indonesia. Discovering new deposits is difficult. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information 5 Dear stakeholder.Sc.com Sustainability Report 2007 . That said. the Board of Directors and all of Antam’s employees as well as our solid relationship with the stakeholders will be able to meet future challenges. The Board of Commissioners oversees and advises the Board of Directors in performing its managerial duties to increase the shareholders and stakeholders’ value. Our third sustainability report is also a reflection of the implementation of good corporate governance (GCG) by presenting transparent and clear information. Suryo Suryantoro. We realize mine closure is part of a natural stage of a mine. beginning from bauxite deposit at Riau and West Kalimantan. We realize it is still a long way toward our 2010 Vision.Sc. high quality reserves and excellent competencies of human resources are keys to sustainable operation. Antam seeks to best develop its human capital.Policy. We closed several mines such as Gebe. especially in the field of mining. Dr. As such. is largely located at the eastern part of Indonesia which covers 68% of the archipelago. Sustainable economic.antam. M. several other mines are planned to be closed in the coming years.Sc. Ir. The commitment and the spirit from the Board of Commissioners. Supriatna Suhala.

MM. production and post mining. Dedi Aditya Sumanagara. Ir.. may have an impact to the environment and social aspects of the community. Syahrir Ika. Sustainability Report 2007 www. SE.antam. Kurniadi Atmosasmito.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam 6 Letter from the Board of Directors “We realize our activities. from exploration.com . MM. Ir. MM. Ir. Alwin Syah Loebis..” From left to right: Ir.. Darma Ambiar. MM..

Darma Ambiar. socio-economic. Alwin Syah Loebis. Antam forms an Environmental and Post Mining Department which is headed by a Senior Manager. community and regional aspects in the coming years. The Commissioner-level Environment and Post Mining committee is responsible for ensuring a proper environmental and social management. MM. Director of HR and General Affairs Kurniadi Atmosasmito. Director of Development Ir. We realize environmental sustainability and proactive community development are necessary to successfully realizing our 2010 vision to be a mining company of international standards with a competitive advantage in the global market. Dedi Aditya Sumanagara President Director Ir. Antam is also committed to the good implementation of work safety and health. production and post mining. MM. Syahrir Ika. may have an impact to the environment and social aspects of the community. Director Operations www. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Dear stakeholder. I am pleased to present our third sustainability report to you..com Sustainability Report 2007 . We aim to benefit the community surrounding its mines. We realize our activities. from exploration. cultural.antam. We aim to create a brighter future with our stakeholders. Environmental protection and post mining initiatives are part of Antam’s responsibility with respect to proper environmental and social management. We would like to express our appreciation for the commitment by all of Antam’s employees and for the support of all Antam’s stakeholders in supporting the sustainability development.Policy. Director of Finance Ir. SE. Antam aims to integrate the concept of sustainability development at its operations. 7 Ir. for employees and contractors. We believe our foundation is stronger to face future challenges. MM. This report highlights our performance as well as our challenges we faced in the year 2007. At the operational level. Antam will focus more on the development of the physical. MM. We aim to obtain Green PROPER at all of our mines by 2010.

com .Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam 8 Corporate Profile: Introducing Antam Antam in Brief 9 Antam in Figures 2007 12 Certification and External Recognition 13 Operational and Development Area 14 Sustainability Report 2007 www.antam.

antam. nickel mining. Antam owns one precious metals processing and refining facility and one exploration unit. Antam’s Pongkor gold mine is located in West Java. Geomin. Antam made an investment in 60% PT Borneo Edo International which owns a bauxite mining license at West Kalimantan. Operational and Development Area Antam’s head office is located in Jakarta. PT Antam Resourcindo operates iron sands mine in Kutoarjo. gold mining and processing. Antam hopes to offer exploration services in the future through its exploration unit. while its precious metal refinery unit is located in Jakarta. ferronickel. Antam increased its investment from 4% to 80% ownership at PT Mega Citra Utama (MCU) which owns a bauxite mining license at West Kalimantan. bauxite mining and exploration unit. gold. and a gold mine in Cikotok. 9 Nickel mining operation. Central Java. Antam has a vast bauxite and nickel deposits in West Kalimantan and North Maluku. In September 2007. and one bauxite mine. Antam formed Antam Finance Ltd (Mauritius) and Antam Europe BV (Netherlands) to help issue bonds to finance the FeNi III expansion project in 2003. PT Antam Resourcindo. West Java. mining. Antam listed its shares at the Australia Securities Exchange with a foreign exempt status and in 2002 augmented the status to a more stringent status of ASX listing. Our activities include exploration. As Antam refinanced the bonds in December 2006. In 2007. In January 2008. respectively. In 1997. diversified and vertically integrated Indonesian mining company. both contributing 99% of Antam’s revenue in 2007. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Antam in Brief Antam is an export oriented. one gold mine. The iron sands operation is run by Antam’s subsidiary.com Sustainability Report 2007 . Antam owned three subsidiaries. The nickel operations are located in Southeast Sulawesi and North Maluku. and iron sands. Antam Finance Ltd (Mauritius) and Antam Europe BV (Netherlands) were in the process of liquidation. Our mining operation is spread throughout the mineral rich Indonesia. Most of company’s income was generated from nickel and gold. Antam had four main activities. In 2007. silver. Antam owns and operates a bauxite mine in Bintan. bauxite. Antam’s main commodities are nickel ore. The public listing was part of a financing exercise the fund the FeNi III ferronickel expansion project. In 1999. processing and marketing. Antam also provide precious metal processing services. Antam operates four nickel mines.Policy. Antam was established as a state owned company in 1968 through a merger of several single commodity national mining companies. Antam listed 35% of its shares at the Indonesia Stock Exchange (formed after a merger of between the Jakarta and Surabaya Stock Exchange). www.

a significant jump compared to 36% in 2006. Antam’s share price rose 176% to Rp4. In 2007.475 at the end of the year. Antam paid a cash dividend of Rp621 billion. Antam’s market capitalization amounted to Rp42. In 2007. In 2007. or 40% dividend payout from the company’s net income as of 31 December 2006.08.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Achievement The year 2007 was a record breaking year in terms of total return to shareholder. Antam reduced its debt to equity ratio to 10%.antam.132 billion. Sustainability Report 2007 www. Antam consistently distributes dividend to its shareholders. and without adding new debt.com . net margin increased 230% to Rp5. The amount is equal to Rp65. Antam’s Earning per Share (EPS) rose 230% to Rp538. Antam’s gross margin amounted to 60%. In 2007. Antam net profit amounted to Rp5.132 billion (US$562 million).553 billion with EPS of Rp 162.764 billion. while operating and net margin rose to 57% and 43%.79 in 2006. a 230% increase with EPS of Rp538.050.79. Antam was able to increase its return on equity to 79%. Antam’s net margin rose significantly to 43%.58 per share prior to a 5:1 stock split in July 2007). Antam’s profit margins rose significantly in 2007. In 2007. Despite an increase of Antam’s total equity due to a 105% rise in free cash flow to Rp8. Antam also gives return in the forms of dividend. Antam’s net profit amounted to Rp1. Underground gold mining at Pongkor. and with a moderate increase of operating 10 costs.08 from Rp162.5 billion) at the end of 2007.7 trillion (US$4.008 billion. Since its listing at the Indonesia Stock Exchange in 1997. Value Creation In 2006. Antam’s share price rose as high as Rp5. Antam’s profits were at all time high inline with higher nickel price as well as increased production and a relatively smaller cost increases at the ferronickel and nickel ore operations. respectively.12 per share (or Rp325. largely due to increased prices of nickel and gold as well as a rise in nickel ore and ferronickel sales. Antam’s sales increased 113% to Rp12.

processing. Antam may benefit from the richness of Indonesia’s mineral deposit. Geomin. As an Indonesian mining company. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Strength Antam is located in Indonesia. Antam’s exploration unit. long term and loyal customers. Antam also has a positive track record in operating modern processing and refining plants. Antam has diversified. healthy cash position and prudent financial management. www. a mineral rich country.Policy. Antam is poised for growth. Antam may benefit from government policy which may prioritise state owned companies in developing Indonesia’s mineral deposit. Antam has nearly four decades of experience in exploration. The average returns and margins of Indonesian mining companies are higher than the average of its international mining peers. Antam has a solid track record of operating history. refining and marketing of mineral products. both majority and minority. Antam has the commitment to implement good corporate governance practices.antam. equally. Antam aims to create and increase its value through the development of its vast reserves and resources. Antam Power Plant lll at Pomalaa. as a state owned company. Antam aims to treat its shareholders. Antam does not rely its market into a single region or country. As well. 11 Inline with a strong balance sheet. has experiences to successfully find profitable deposits. Antam aims to create value to its shareholders.com Sustainability Report 2007 .

687 billion Rp1.3 billion 2.998 hectares 3.4 billion 2.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Antam in Figures 2007 Sales contribution from gold operation Sales contribution from ferronickel sales 12 9% 48% 41% Rp10.876 hectares Rp10.6 billion 4.182 billion Rp7.716 Rp42.785 billion 65% Rp689.com .163 billion 113% Rp6.antam.312 Sales contribution from nickel ore sales Revenue from nickel segment Revenue from gold segment Percentage of sales increase Operating Cashflow Retained Earnings Ownership of the Government of Indonesia Non Tax Contribution to the State Number of Employees Investment for Environmental Management Operational Area Reclamation Area Partnerships Program Expense Recipient of the Partnership Program Sustainability Report 2007 www.

Warta Ekonomi e-Company Award 2007 Asia’s Best Companies 2007 – FinanceAsia • Best Managed Company (Rank 6th) • Best Corporate Governance (Rank 5th) • Best Investor Relations (Rank 2nd) • Most Committed to a Strong Dividend Policy (Rank 6th) The Best Corporate Governance Practices 2007 in the Small/Mid Cap Category in Asia/Pacific by Technical Criteria – IR Global Rankings Top Performing Listed Company – Investor Award 2007 Gold Medal in 2007 International Conference on Quality Control Circles. Ranked 1st at the Trusted Company category at the Corporate Governance Perception Index 2006. Annual Report Award 2006 • Ranked 1st Overall • Ranked 1st SOE Non Finance Category League of American Communication Professionals (LACP) 2006 Vision Awards Annual Report Competition • Platinum Winner (Materials Category) • Gold Winner (Best In-House Report Category) • Ranked 11th from over 2. 13 www. Bronze Medal for the North Maluku Nickel Operation at the 2007 Reclamation Award from the Department of Energy and Natural Resources. Beijing. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Certification and External Recognition Best 2006 Environmental Reporting at the 2007 Indonesia Sustainability Reporting Award (ISRA).500 international entries Ranked 1st in the Mining and Energy category .com Sustainability Report 2007 .antam.Policy.

antam.163 billion 740 BAUXITE AND IRON SANDS Assets Sales Employees Rp212 billion Rp158 billion 175 Sustainability Report 2007 www.618 billion 282 GOLD AND REFINING Assets Sales Employees Rp707 billion Rp1.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Operational and Development Area Head Office and Geology Unit Gold Nickel Iron Sands Bauxite 14 14 I N D O N 11 1 7 5 1 2 6 8 15 10 2 3 7 6 4 5 HEAD OFFICE Assets Sales Employees Rp5.com .

25% 11 PT Sorikmas Mining Antam 25% 12 PT Gag Nickel Antam 10% 9 13 PT Weda Bay Nickel 14 PT Dairi Prima Mineral 15 PT Galuh Cempaka* *currently operational 15 Antam 10% Antam 20% Antam 20% 9 13 4 12 8 NICKEL AND REFINING Assets Sales Employees Rp5. Gee Antam’s Projects 1 2 3 Strategic or Majority Stake Development Projects Tayan Chemical Grade Alumina (CGA) Antam 49% SGA Munggu Pasir Antam 49% Pearl Project (FeNi IV and Hydromet) Antam 50% 4 Tsingshan Nickel and Stainless Project Antam 60% 5 PT Borneo Edo International Antam 60% 6 PT Mega Citra Utama Antam 80% 7 8 SGA Mempawah Sponge Iron with Krakatau Steel Antam 55% Antam 34% E S I A 5 9 3 Certain Minority Stake Joint Venture Projects PT Nusa Halmahera Minerals* Antam 17. Mornopo.504 www.com Sustainability Report 2007 . Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Operations (100% Antam) Type 1 Bauxite Mine 2 Gold Factory 3 Gold Mine 4 Irons Sands Mine 5 Irons Sands Mine 6 Precious Metal Refinery 7 Gold Mine and Factory 8 Nickel Mine and Smelters 9 Nickel Mines Location Kijang Cikotok Cikidang Kutoarjo Lumajang Jakarta Pongkor Pomalaa Tanjung Buli.687 billion 1.Policy.5% 10 PT Cibaliung Sumberdaya Antam 10.501 billion Rp10.antam.

com .Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam 16 Corporate Policy. Corporate Governance. and Management System Improving the corporate governance and management system 17 Implementing International Standard Management System 22 Stakeholder Engagement 23 Sustainability Report 2007 www.antam.

Policy. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Improving the Corporate Governance and Management System Corporate governance is an evolving concept. In 2007 Antam showed an improvement in corporate governance practice compared to last year. Antam believes corporate management should be based on the principles of transparency. risk management. The Corporate Policy Manual consist of corporate guidelines which must be adhered by Antam’s employees. www. corporate sustainability report.com Sustainability Report 2007 . Indonesia adopts a two boards system which consists of the Board of Commissioners who supervise the management of the company and the Board of Directors who manage the daily operation of the company. accountability. the Board of Commissioners.antam. independency. responsibility. Antam believes a consistent and continued implementation of good corporate governance will help ensuring a sustainable growth. and the Board of Directors. completion of performance assessment of the members of the Board of Directors and members of the Commissioner-level Committees. In the long term. Antam has improved its corporate governance practices in view of increasing the shareholders and stakeholders value. The Corporate Policy Manual is one of the three major GCG documents. Antam improved its GCG practices with the finalization of the revised Corporate Policy Manual. 17 Strategic planning Organization Corporate Secretary Supervision and control Risk Management Code of Conduct External Relations and Corporate Image Legal Operations Human Resource Management Finance and Accounting Information Technology Procurement Corporate Social Responsibility • • • • • • • • • • • In 2007. and corporate policies. Two other major documents are the Management Policy and the Standard Operating Procedure. Laying a solid foundation to managing and supervising the company The Corporation Law No. Antam also established a division to handle GCG implementation which is headed by an Assistant Senior Manager. Antam formulates a Corporate Policy Manual to clearly divide the roles and responsibilities of the Board of Commissioners and the Board of Directors. 40/2007 states a corporation governing body consists of the Shareholders Meeting. Antam believes the GCG implementation may help increase the investors’ trust and improve the investment condition in Indonesia as a whole. Antam formally began the implementation of good corporate governance when it listed its shares at the Indonesia Stock Exchange (IDX) and the Australia Securities Exchange. Other state owned companies frequently conduct visits to Antam for corporate governance study. The chapters at the Corporate Policy Manual are: • • • Gold ore processing at Pongkor. fairness and equality. Since then.

handling policy.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Strategic Planning The Board of Commissioners and the Board of Directors are responsible in setting the strategic direction of the company. Antam also faces operational challenges in the form of equipment. Antam utilizes risk based audit at its business process to align with risk management. materials. Underground gold mine at Pongkor. Antam proactively 18 implement risk management in its decision making process. Sustainability Report 2007 www. Operation Antam faces operational challenges in the form of finding economical and profitable reserves. The role and responsibility of each board is described in the articles of association and the charter of each board. Antam has a strategic planning strategy in the form of policies and standard operating procedures. risk analysis. Antam communicates its strategic direction and planning regularly. The risk management department is responsible in providing constant assessment of risk in decision making process. Internal audit practice is based on the Internal Audit Charter. Supervision and Control Antam conducts supervision and control through internal audit. The internal audit is responsible for the efficient implementation of internal control. risk evaluation. supervision and communication process. As well. Antam implements risk management through context application. environment and work and health safety aspects. Antam operates in accordance with the existing law as well as internal guideline. Antam has a special department in risk management.com . Antam believes strategic planning will better help guide the direction of the company in achieving its vision. Antam regularly reviews its strategic direction to keep the company on track in realizing its vision. risk management and good corporate governance. Antam operates with a view of creating a sustainable sustainable profit and growth. risk identification. Internal Audit Standard Profession and Code of Conduct from The Institute of Internal Auditor. Antam requires its contractors to follow the internal operation guideline.antam. Risk Management Antam believes risk management is key in decision making process.

Antam conducts CSR practices through stakeholders’ Induction program for Antam’s new employees.antam. mine closure and post mining are integrated parts of Antam’s mining operation. Antam forms a helpline to answer any queries related to code of conduct. Antam’s human resource management incorporate all issues related to human resource such as human resource planning. implementation. The code of conduct serves as a business practice guideline. Antam’s employees may talk or report to their superior officer or directly through the Senior Vice President Corporate Secretary. Antam’s human resource management system is free from any discrimination including ethnic group. Antam socializes its code of conduct through coaching and mentoring. Corporate Social Responsibility Antam embeds the corporate social responsibility in its corporate values. employees’ benefit and medical needs. race and political interests. communication and adherence to the existing regulation. code of conduct and national and international regulations. Human Resource Antam ensures its human resource asset is a key factor in achieving the company’s goal. Antam treats all information made to the helpline with utmost confidentiality.com Sustainability Report 2007 . www. Production aspect that is consistent with Antam’s long term plan. Employees may also talk with the Board of Directors for more important issues. identification. Outsourcing based on a mutual benefit relationship.Policy. Environmental preservation. religion. The human resource management is founded on a meritocracy system based on skill and performance. Proactive marketing. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Antam’s operational policy includes: • • • • • Exploration activity which incorporate community interests and comprehensive information. Senior Manager Legal and Compliance or Senior Manager Human Resources Management. Bankable Feasibility Study which will allow a proper risk analysis. 19 Code of Conduct Every Antam employee must sign the corporate code of conduct. The mining operation must be based on a proper environmental management and compliance to the existing standard. work termination. Antam’s employees may report any issues related to the code of conduct to the helpline. • • Implementation of a healthy and safe working environment which adheres to the existing regulation and related requirements.

The study also showed a 0. Despite a number of reports since the code of conduct is launched. 20 Sustainability Report 2007 www. The positive correlation indicated any GCG improvement was also likely to increase the stakeholders’ benefit. improper leadership.07 at the Corporate Governance Perception Index 2006. conflict of interest. The survey covered 15 public companies and 8 state owned companies. The internal audit may also investigate wrongful conducts such as dishonesty. inaccurate information to the public. as well as violation of existing regulation. Antam ranked first in the category of Trusted Company with a score of 82. Members of the team come from the head office or business units.407 positive correlation between the GCG practice and return on equity.com . Internal Audit may examine employees’ complaints in relation to accounting.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Antam will form an Employee Convention Team should there be any violation. risk management as well as good corporate governance implementation. Antam has an internal audit division which is responsible for internal supervision and control. The event was held by an independent institution. none have been proven. unethical conduct. Antam selects members of the team based on their competency and knowledge. Keeping the Shareholder’s Trust External parties have recognized Antam’s GCG implementation. Indonesian Institute for Corporate Governance.antam. internal control. fraud as well as employees and management behavior.

International Trade. 7. Healthy and Safe Working Environment. the code of conduct also adheres to the society’s norm. 6. Relationship with Supplier.antam. Equality and Respect to Human Rights.com Sustainability Report 2007 .Policy. Intellectual Property Rights. Remuneration & Human Resources Development Committee Board of Commissioners Risk Management Committee Environment & Post Mining Committee Audit Committee Corporate Secretary • Learning and Assessment • HR Management Board of Directors Risk Management Environment and Post Mining Formal line of command Coordination Business Units Internal Auditor External Auditor www. THE PRINCIPLES OF CODE OF CONDUCT 1. 9. Fair working opportunities. 11. 5. 3. Unwarranted payment. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Code of Conduct Antam’s management formulates the company’s code of conduct in accordance with the existing law and regulation. Supervision and Utilization of Assets. Conflict of Interest. As well. Antam’s Director of GA and Human Resource supervises the implementation of code of conduct at employees’ level. 10. 12. 4. 8. Confidential Information. 2. Gifts and Entertainment. 21 General Meeting of Shareholders GCG Committee Nomination. The Board of Commissioners supervises the implementation of the code of conduct at the Board of Commissioners and Board of Directors level. Relationship with the Government.

Environmental Management System ISO 14001 and Quality Laboratory Management System ISO 17025.antam. Sustainability Report 2007 www. Antam received Gold medal at the International Convention on Quality Control Circle 22 (ICQCC) in Beijing. Antam aims to manage its business units in accordance with the international standard. Examples of business process improvement include: • • The implementation and integration of Balanced Score Card into the Performance Management System. In 2007. The following business units have implemented international management system: • • • Pongkor Gold Mining Business Unit meets the requirements of Quality Management System ISO 9001 and Environmental Management System ISO 14001. • Geomin Unit meets the requirements of Quality Management System ISO 9001. Antam also received similar award at the same event held in Bali. Antam strives to improve its business processes. Precious Metal Processing and Refinery Business Unit meets the requirements of Quality Management System ISO 9001. The implementation of Malcolm Baldrige Criteria for Performance Excellence. Pomalaa Nickel Mining Business Unit meets the requirements of Quality Management System ISO 9001 and Environmental Management System ISO 14001. In 2006.com .Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Implementing International Standard Management System Antam’s business units keep proper management system documentation to ensure smooth operational process and continuous improvement. In 2002 Antam established Quality Management division to facilitate improvement process by providing support for improvement process at the head office and business units.

Partnership and Environmental Development Program (PEDP) Program to develop local economy and infrastructure. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Stakeholder Engagement Antam understands the importance of communication with its stakeholders.com Sustainability Report 2007 . feedbacks and complaints on Antam’s products and services. Mining Operation Meetings Meetings that discuss environmental impact and mine operation. Shareholders Business Partner Bipartite Forum: Management and Labor Union Meetings to discuss industrial relation and employee related matters. www.Policy. Mining Authority Antam Local Government Meetings with Buyers Meetings to obtain customer’s expectations. Operational Meetings Consultative meetings between Antam and its business partners. Antam engages its stakeholders in strategic planning process. as well as implementation and evaluation of company’s initiatives. 23 Community Development and Relation Managing the interests of the local surrounding communities. Employee Tripartite Forum: Management. Shareholders general meeting Annual meeting to discuss company performance and strategic policy. requirements.antam. Buyer Local Community PEDP Development Planning Meeting with Local Stakeholders Meetings to discuss local development planning. Antam utilizes a number of tools to ensure effective communication with its stakeholders. Labor Union and Government Meetings to discuss industrial relation problem that cannot be settled in bipartit forum. Annual Report and Press Release Reports that communicate the company’s performance to public and media.

Introduction: A Closer Look at This Report

Letter from the Board of Commissioners

Letter from the Board of Directors

Corporate Profile: Introducing Antam

Sustainability Performance
24

Financial Performance 25 Environmental Performance 29 Social Empowerment 46 Implementing Human Rights Through Commitment and Education 53 Building Sustainability Together with Community 54 Responsibilities towards Product Impact 60
Sustainability Report 2007 www.antam.com

Policy, Corporate Governance and Management System

Sustainability Performance

Cross Reference with GRI – G3

Corporate Information

Financial Performance
Performance through Expansion, Sharing with Empathy
In 2007, net profit increased 230% to Rp5,132 billion due to the increased commodity prices and production volumes Indonesia is a mineral rich country and well regarded for its mineral potential. As a mining company, Antam has vast reserves and resources as well as high quality human resources as its assets. In 2007 Antam’s exploration activities were focused on nickel, gold and bauxite. The exploration cost rose 32% to Rp125 billion. In 2007 Antam spent Rp91 billion for nickel exploration, Rp26 billion for gold exploration and Rp8 billion for bauxite exploration. Geological and drilling activities were the major components of the exploration cost. In 2007, Antam’s nickel saprolite reserves and resources amounted to 180.9 million wet metric ton (wmt). Meanwhile, nickel limonite reserves and resources amounted to 214.2 million wmt. Antam’s gold and bauxite reserves and resources amounted to 4 million wmt and 81.6 million wmt respectively. Antam’s vast reserves and resources is one of the company’s competitive advantages. Antam estimates it may operate for several decades at the current production level even though it stops exploration. 2007: A Record Breaking Year Antam posted a record breaking performance in 2007. Antam generated a strong cash flow and the company was ready for enter its next growth phase. The strong performance in 2007 was largely due to increased production as well as commodity prices.
SALES AND PROFITS (In billion Rupiah)
12,008.2

In 2007, revenue rose 113% to Rp12,008 billion compared to Rp5,629 billion in 2006. The significant increase was due to increased production and sales volume of ferronickel, nickel ore and gold. Higher commodity prices also contributed to the record breaking performance. Production of ferronickel rose 28% and contributed 48% of Antam sales. Increased demand boosted nickel ore export by 63% and contributed 41% of total sales. Inline with higher revenue from the nickel, the contribution of nickel segment amounted to 89% compared to 84% in 2006. Sales from nickel segment rose 126% to Rp10,687 billion. Despite lower gold production inline
6,796.1

25

with lower gold grade, sales of gold jumped 50% as Logam Mulia conducted gold trading from
5,132.1

5,629.4

third parties. Inline with increased gold sales, Antam’s silver sales also increased. Sales from the gold segment which included gold, silver and income from precious metals services rose 68% to Rp1,163 billion. Nickel and gold segment contributed 99% of Antam’s revenue in 2007.

2,859.5

3,251.2

2,403.7

1,096.6

1,099.8

1,552.8

810.3

841.9

Similar with previous years, Antam remained an export playet with export market contributing 97% of sales. Antam’s domestic sales came from gold sales (approximately a quarter of gold sales came from the domestic market) and precious metals refinery services.
07

04 Sales

05

06

Antam’s ferronickel customers are world class stainless steel producers such as as Thyssen Krupp Nirosta, Outokumpu, AvestaPolarit, Arcelor Mittal, Nisshin Steel, Nippon Yakin Kogyo and Yieh United. Antam exported its gold to Standard Bank London in Singapore. The sale of ferronickel in

Operating Profit Net Profit

www.antam.com

Sustainability Report 2007

Introduction: A Closer Look at This Report

Letter from the Board of Commissioners

Letter from the Board of Directors

Corporate Profile: Introducing Antam

Europe which is handled by Avarus AG, had the biggest contribution to Antam sales, amounted to 29%. The second largest consumer was Posco which contributed Rp1,438 billion to Antam’s sales. Yieh United of Taiwan contributed Rp1,155 billion of sales or 10% of Antam’s total sales. Facing the Challenges with Efficiency Similar to other world’s mining companies, Antam posted higher cash costs inline with increased costs of materials, labor and transportation. Despite higher costs, Antam remained a competitive

OPERATING CASH FLOW (In billion Rupiah)

769

from PT Inco and higher fuel price. The biggest component of ferronickel total cost was material which contributed 58%, followed by 21% contribution from depreciation. The biggest component from material cost was fuel and ore feed from PT Inco, each of them contributed 43%. The third biggest component in material cash cost was supplementary material with 8% contribution. A metal consultant based in London predicted the average cash cost of nickel amounted to US$4.15 per pound in 2007. The lowest cash cost of ferronickel producer was approximately
643

04

05

742

Cash cost of ferronickel increased 26% to US$5.55 per pound iline with higher price of ore feed

06

1,711

commodity producer, with the exception of ferronickel.

07

LABOR EXPENSES (In billion Rupiah)

ferronickel cash cost. Antam currently studies the best energy alternative and hopes a decision to study of using Smart Predictive Line Controller technology. The cash cost of limonite and bauxite rose 30% respectively to US$11.26 per wmt and US$13.44 the cost per unit became higher. As well, higher cash cost for limonite and bauxite was due to increased cost of mining services. The cash cost of saprolite slightly increased to US$20.32 per wmt. Gold cash cost rose 35% to US$383.1 per ounce inline with higher fuel price. Antam’s silver was a gold byproduct and sold to silver jewelers in Indonesia.
26
99 442

be made in the near future. Antam also appointed Hatch Ltd. of Canada to conduct a feasibility

586

Antam planned to convert to a cheaper energy source such as hydro, coal or gas to reduce its

per wmt inline with decreased production. Decreased limonite and bauxite production made

108

222

221

19

16

04

05

06

18

07

Pension and other liabilities Medical Expenses

In 2007, Antam signed a power purchase agreement from PT Tamboli Energy (Tamboli) for supplying 15MW of hydro power to Pomalaa operating facility. The supply will cover around 15% of the total power requirement. Antam expects reduction of power cost for ferronickel for 8-10% or approximately 3-4% of ferronickel cash cost when the electricity supply from Tamboli began in 2009.

Salaries

Sustainability Report 2007

www.antam.com

22

726

US$2.1 per pound with the highest cash cost producer amounted to nearly US$7 per pound.

4,835

3 2.0 1.15 0.9 10.com Sustainability Report 2007 . fishery and services sectors. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information CONTRIBUTION TO THE GOVERNMENT* (In billion Rupiah) 2.02 0.2 1. animal husbandry. 928 806 Antam aims to provide sufficient employees’ welfare. Natural Disaster Aid Education and Training Aid Medical Aid Infrastructure Development House of Worship www. Antam also utilizes post mining programs and supporting the surrounding community through the Community Development Program. royalty and other non tax contribution. .571 Sharing Prosperity through Supporting Local Economy As the biggest Indonesian state owned mining company.4 0.05 0. 390 04 05 06 07 Antam shares its empathy through sharing with others.3 4. • 2007: Funds were distributed to industrial. Antam utilizes local resources and gives recruitment priority to local community. fishery and services sectors.95 .4 1.8 1.9 0.7 1. Antam also helps to provide infrastructure in the surrounding community.Policy. Antam participates in the efforts to improve the welfare of the surrounding community. FUNDS DISTRIBUTED THROUGH THE PARTNERSHIP PROGRAM (In billion Rupiah) FUNDS DISTRIBUTED THROUGH THE ENVIRONMENTAL DEVELOPMENT PROGRAM (In billion Rupiah) 4. trade.4 1.4 FUNDS DISTRIBUTED THROUGH THE PARTNERSHI PROGRAM (In billion Rupiah) 3. trade.9 0.7 4.95 .9 1. the Partnership Program and the Environmental Development Program. .antam. animal husbandry.4 0.8 10. Antam is committed in empowering the surrounding communities around its mines. trade and services sectors.3 05 06 07 05 06 07 05 06 07 27 • 2005: Funds were distributed to industrial. • 2006: Funds were distributed to industrial. *Including tax.

28 Local government and Antam will formulate 5 years activities planning. In environmental aspect. economy and environmental activities.com . then there will be positive as well as negative multiplier effects to social. plantation crops. Antam has conducted many efforts to reduce the environmental impacts caused by its activities. we expect for better coordination between Antam and local government in social. This is according to Antam’s Community Development preparation to develop master plan for anticipating post-mining period. MM The local government of Bogor Regency has recognized positive influence from Antam’s presence in the neighborhood.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Head of Social and Economy Sectors of the Regional Planning Agency Bogor Regency Ir. This is important to avoid any overlapping in planned activities stated in local government budget. For example. if Antam is building road facilities and bridge for the people of Nanggung village. Sustainability Report 2007 www. The facilities however also contribute to the pollution caused by the traffic. the mining closure may have minimal impacts because Antam and local government already arrange necessary preparations to achieve independent society. therefore. Nano Supriatna. Since 1999. fishes to the market and easier access to education and health facilities. It is expected that Antam will conduct economic assessment of company’s activities in order to substantiate how much Antam has contributed to the communities in the vicinity of mining site and the regency of Bogor. Antam has carried out its responsibility as required by the law and since the year of 2000 demonstrated its responsibility as Corporate Citizenship by contribution including royalty to Provicially Generated Revenue to increase social and economy sectors of communities. It is expected to reduce the risk of community dependency on Antam.antam. economy and environment such as easier transportation to send agricultural. However. which will be discussed in Development Planning Conference.

Oblige to maximize the use of natural resources in the context of conservation and lowering waste. Environmental code of conduct stated that beyond comply to the regulation. emission and the use of Hazardous and Poisonous Materials (B3). “The earth. foster relentless care beyond mining operations Antam understands that mining activities can pose potential damage to the environment and the society. to eliminate risks caused by operational activities or products. evaluate and improve environment management on regular basis to improve environmental performance. conformity. to minimize pollution environment problems effectively and efficiently.Policy. water and the natural resources are owned by the state and vastly used for the prosperity of the people”. law and policy on K3. Oblige to minimize land disturbance and conduct rehabilitation program to restore land function. to ensure all mining and related employees understand and act upon environmental and K3 procedures. Maintaining Sustainability Strong commitment to preserve the environment. Antam believes it is possible in mining business to preserve balance with nature and environment. As codified in chapter 33 verse 3 of the 1945 Indonesia Constitution. methodology. Antam prioritizes K3. AMDAL) in operation activities.com Sustainability Report 2007 . Oblige to execute and comply with environmental policy (Environmental Impact Analysis. Have mine closure and post mining plan in every mining activity. However. 29 www.antam. care for environment preservation and participate in community development in the context of sustainability development when conducting operations. Antam shall attempt to reduce waste. Antam conducts mining activities to be used for the prosperity of the people without jeopardizing harmony. All Antam’s units/divisions when conducting work are bound in code of conduct. equipments and materials with lowest negative impacts to environment on every mining activity. balance. sustainable environment may be realized. The Environment policy emphasizes the following: • • • • • • • Make every effort to use system. to deliver compulsory training on company’s regulation. Policy and Code of Conduct Antam’s approach to environmental management is stated in occupational health and safety (K3) policy. Obliged to audit. With strong adherence and commitment from all of Antam’s employees to restore land function during mining operation and post mining activities. including the protection of flora and fauna within the lands. equal justice and sustainability for now and future. Oblige to have emergency response procedures for potential activities that may cause environmental accidents. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Environmental Performance Preserving the Environment.

Antam has Environment and Post Mining Committee as one of the Committees established by Board of Commissioners (BoC) to assist in carrying out its roles and responsibilities. The realization of environmental cost in 2007 compared to 2006 increased 6% to Rp43 billion. Environmental Cost Antam’s commitment in environmental sector also demonstrated in the increase of environmental cost every year. In 2008.com 107 . Antam Grafik Pengeluaran Kapital dan Operasional Lingkungan 2004 . Pengeluaran Lingkungan (Rp Milyar) ENVIRONMENTAL MANAGEMENT EXPENSE (In billion Rupiah) 50 40 40 43 30 30 20 23 22 10 0 04 05 06 07 Sustainability Report 2007 www. Antam budgeted Rp57 billion.antam. To support the implementation of several environmental programs in 2007.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Antam’s Commitment in Environmental Sector Antam intensified commitment to the environment and reflected in Antam’s new organizational structure of Environment and Post Mining began on October 2007. It is expected with this new structure that environmental policy will get more support in its 82 89 ENVIRONMENTAL MANAGEMENT AND RECLAMATION LIABILITIES (In billion Rupiah) implementation. in line with global demand to be more conscious on environmental aspect. total employees assigned at environmental division reached the highest amount ever of 13 employees. The structure reflects Antam’s concern and main priority of management for environment and post mining aspect. Furthermore.2008 04 05 77 06 07 expects to increase the number of employees in 2008 by 5 more employees (two from bachelor degree level and three from diploma certification).

including soil. One important element in Antam’s environmental management system is setting and reviewing environmental objectives in company’s budget (RKAP) and affected to performance assessment from staff to President Director. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Environmental Management System In the effort to manage environment inline with international standards. including open pit mining. the responsibility of using the land means to understand functional purposes prior to exploitation as well as the potential use. The ISO 14001 standard requires the environmental management system to cover the commitment and policy. not until cease of operations.997.antam. Antam’s main operational areas has received ISO 14001 certification and conduct regular inspections and internal and external environmental audit every 6 months.875. Total areas that need rehabilitation. 22% Just as shown in chart. the ratio was 29% and in 2007. www.997.05 ha or above 98% of the target.7 hectares. the percentage of lands needs to be rehabilitated has trended down in the last three years. in accordance to ISO 14001 requirements. audit and follow up action as well as management study. the ecological and social value and community development expectation while the lands are under the company’s operations. water and material. The reduction was due to several mining locations in post mining program and also Antam rehabilitates the areas once the reserves are exhausted. Land REHABILITATED LAND TO TOTAL LAND USE RATIO UNTIL 2007 For Antam.8 ha of lands in all operational areas. the total land opening was about 4. Until the end of 2007.9 ha. Antam follows the environment management standard system developed by the International Organization for Standardization (ISO) covered in ISO 14000 series. energy. Antam planned to rehabilitate 231. however Antam has realized 228. implementation and operation. 31 Non-rehabilitated land Rehabilitated land Total land use until 2007 was 4. Managing Resources Responsibly Below is discussion of Antam’s performance in resources utilization. In 2005. 78% In 2007.7 ha and total land rehabilitated was 3.com Sustainability Report 2007 .Policy. the ratio decreased to 22%. infrastructure and active operational areas can only be rehabilitated after mine closure. planning. The ratio between lands require rehabilitating and total land opening showed downtrend.

The program facilitates ESDM to provide an incentive to the industry in form of energy audit as well as energy conservation identification and recommendation. Antam has signed Power Purchase Agreement with PT Tamboli Energy for the power purchase of 15 MW (peak load capacity) for 5 years starting 2009. The regency of Kolaka (about 63 km from Pomalaa) using run-of-river method. In 2006 and 2007. In 2008. There will be no man-made dam. From the three new power resources that are in exploration phase. The power supply generated by a low impact hydroelectricity plant hopefully can reduce up to 3-4% ferronickel production cash cost and also reduce Antam’s carbon footprint.com . thus. the industry obliges to examine and conduct study follow up. Sustainability Report 2007 www. Antam’s gold business unit Pongkor participated in Energy Audit Program conducted by Energy and Mineral Resources Department (ESDM). Antam is trying to find new energy resources. For short-term (4-5 years) requirement. The Search for New Energy Resources To anticipate of power requirement in the future and considering current operations and business expansion plan. On the other hand.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Energy Research and Development Studying energy use and identifying the energy saving opportunities are first step in energy conservation and cost saving.antam. it contributes advantage to the environment as well as enhancing the Antam’s products competitiveness. the agreement with PT Tamboli Energy has reached the next phase. The exploration for new energy resources attempts to apply renewable energy components. energy intensive ferronickel process may be more efficient. Antam’s nickel business unit Pomalaa will conduct energy audit and hopefully with the recommendation. This hydroelectric plant will be built in the Tamboli River. so it is expected to achieve significant energy saving not only from cost of financial aspect. but also from the environmental aspect. Antam has identified several energy resources and currently in various implementation phases. In September 2007. therefore sustaining the 32 environment preservation.

760 kWh 316.com Sustainability Report 2007 . as audit report delivered in November 2007.221 kWh Consumption 2007 (GJ) 162.135 liters 48. low-cost and high-cost initiatives).30 11.antam. ENERGY CONSUMPTION AT PONGKOR Source of Energy National Grid Diesel Oil Thermal Oil Electricity Generator (back up) Consumption 2007 45.356 liters 268. Expected completion in 2008. The energy audit result in 2006 showed that there was potential energy saving about 7100GJ per 93% Diesel Oil National Grid annum (with the no-cost. Feasibility Study.061.532.222. PLTU 150 MW Coal Pomalaa Study on IPP (Independent Power Producer) scheme.78 33 www. However. Feasibility Study Progress PT Poso Energy 90 MW Hydro Pomalaa SOURCE OF ENERGY AT PONGKOR 7% Case Study: Gold Business Unit Pongkor The pattern of power use in Pongkor as followed: • • • 50% for mining activities 45% for processing 5% for public road lighting Most of the power source come from PLN (state owned power company) while others from diesel power (used as thermal oil and standby power generator). Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information SOURCE OF ALTERNATIVE ENERGY Source PT Tamboli Energy Capacity 15 MW Source of Energy Hydro Used at Pomalaa Construction. the possibility of having the energy saving initiative may be started in 2008.Policy. Expected completion in 2008.

The ferronickel plants currently require about 88 MW power and supplied by Antam’s diesel power plant. WATER RECIRCULATION AT PONGkOR Description Source Amount (M3) Recirculation Amount (M3) Percentage of recycled water (%) 4.655 5.959 469.835.257 kg Consumption 2007 (GJ) 5.antam.033.117 768.191 898. As mentioned in 2006 sustainability report. with capacity of 102 MW (as the main power source) and 58 MW (as back up power source).049.180.5 m3 in 2007. it is also required by the surrounding community at operational areas and environment to support the ecosystem. Case Study: Gold Business Unit Pongkor Currently gold mining activities as well as gold ore processing activities no longer use the water directly from nature.281 60% MFO Coal IDO 31% SOURCE OF ENERGY AT POMALAA 9% Industrial Diesel Oil (IDO) Coal Water Water is important in mining and metal processing. hence reducing the amount of water taken from the environment.441.875 6.69 87.02 52.com . The only domestic water needed was taken from the nature through well and dug well.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Case Study: Nickel Business Unit Pomalaa Ferronickel facilities at Pomalaa consume energy of 750 GWh per year or equal to 90% of total Antam’s power consumption.846 Sustainability Report 2007 www. One of current power saving efforts is utilizing sludge oil to rotary kiln as additional fuel.649.151.654.051 2.25 84.190. Pomalaa and Pongkor have been re-circulating the water into the system.90 Mine recycled water Water from waste treatment plant Plant recycled water Waste water to tailing dam Total recycled water • Waste water from the mine • Waste water from the plant to the tailing dam 5.012 4. Water required for mining and processing activities is taken from water re-circulation.507. However.804 liters 20.216 liters 109.643 • Back Filling • Drilling water into the mine • Tailing Dam to the plant • Waste water and water from the tailing dam into the plant 243. the improvement of efficiency in power consumption will be focused on reduction of greenhouse effect emission. ENERGY CONSUMPTION AT POMALAA Source of Energy Marine (MFO) Fuel Oil Used at Power Plant Ferronickel Plant Ferronickel Plant Consumption 2007 143. The water saving program has been done since 1998. with total water extraction 34 2.

The water recirculation discharge 940 m3 per hour while plant disposed water discharge 635 m3 per hour. 35 www. in 2007 approximately 3. In 2007. D B. 38/1991 from the Governor of West Java on Water Category and Water Quality Standard.000 mm per year.249. Currently Antam plans to re-circulate water used by ferronickel plants. as well as the ground water that seeps from the mine during mining process. Water used at plants is being re-circulated in order to reduce the use of natural water. C.953 1. Processing Plant outlet: stream of rainwater captured in tailing dam and decant pond.com Sustainability Report 2007 .658 0. WATER TAkEN FROM THE ENVIRONMENT Description Source Installed Capacity Usage Total Consumption (thousand M3/ year) 1. which volume is assumed equal to volume streamed to the Cikaniki River).776 3.346 m3 water volume was disposed to Cikaniki River (with authorization of local government). Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Although Antam is using water recirculation for mining and processing. through mining and processing outlets.493 2.729 * Water category is based on the Decree No. the water volume extracted approximately 7. Case Study: Nickel Business Unit Pomalaa In 2007.151 Inlet 1 Inlet 2 Drilling well Digging well 75 m3/day 10 m /day 3 Domestic Domestic TOTAL TREATED WASTE WATER DISPOSAL Description Mine Treatment Plant Cikaret Treatment Plant Disposal Destination Cikaniki River Cikaniki River Water Category B.271 m3.729. D TOTAL Total Disposal (thousand M3/year) 1. Currently Antam have built two re-circulation ponds for clean water and dirty water from plants. While the dirty water pond is to hold the waste from slag cooling process. C.antam.874 m3 (not included rainwater and ground water from mine site. total water saved approximately 6. including the construction of liquid waste flow treat diagram. The above water volume was considered acceptable due to Pongkor’s rainfall could reach 6. On the question of why is there disposal of water when there is no water being taken from the nature can be answered with the availability of water source as follow: • • Mine outlet: rainwater from settling pond and decant pond.800. The clean water pond is to hold the water overflow from the plant’s cooling system.Policy.

Antam attempts to conserve materials through recycling efforts. The four dams were constructed as rainwater sediment control facility.53 NaOH H2O2 Others Most of processed materials are still contained within the disposed water.11 0. In its activities. hence the recycle efforts is conducted to substitute the processed materials. Case Study: Gold Business Unit Pongkor MATERIALS IN GOLD MINING AND PROCESSING Material Gold Ore Sodium metabisulphide NaCN HCl Lime 36 Usage Raw material Cyanide destruction Gold binding Carbon leaching Maintain/increase pH level Maintain pH level Cyanide destruction - Total (thousand tons) 389.563 Material Material is the biggest cash cost component in mining and processing activities.314 7. the efficiency of using materials means reducing need for resources. Sustainability Report 2007 www. WATER TAkEN FROM THE ENVIRONMENT Description Inlet Kumoro Inlet Huko-huko River River Source Usage Domestic Production T O TA L Total Water Taken (million M3/year) 5. Most of the water with CN content is also being pumped from thickener to milling unit with the purpose to utilize the CN content for cyanide process.88 1.19 0. there are four environment disposal outlets (check dams) to hold rainwater from mine surface.53 0. The recycle effort shown from the 469.249 TREATED WASTE WATER DISPOSAL Description Plant Outlet Disposal Destination Sea Total Disposal (million M3/year) 5.655 m3 of water being pumped from the tailing dam to the plant (thickener unit) to be used in the process. The discharge amount from several dams depends on the rainfall.09 0.33 0. Furthermore.935 1.44 0.com .antam.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Furthermore.

19 2. To anticipate in the future.9/2006 on Waste Quality Standard for Nickel Mining Business and/or Activities. Antam also participates in PROPER (Environmental Compliance Audit) program conducted by the Ministry of Environment. at least 40.6%.60 12. Antam executes effluent analysis at various sampling points and requests independent laboratory to carry out inspection every three months. exceeded the effluent quality standard as required by The Government Environmental Regulation (Peraturan Menteri LH) no. It means Antam has implemented environmental preservation effort as instructed by the regulation.385 tonnes of dirt (pellet shape) are being fed back into the process and substitute nickel ore requirement as much as 3. monitoring result showed the level of total suspended solids (TSS) in several effluent quality observation points in Pomalaa operational areas.48 1. From October until December 2007. Antam will conduct repairs and improve the wastewater channel. 37 www.13 %.76 13. Avoiding Catastrophe Furthermore.292 49. the recycle effort in ferronickel smelting process as follow: 17.Policy. Managing Waste. Furthermore. Antam attempts to improve its environmental management effort to reach the green level in all operational areas before 2010. Liquid Waste (Effluent) Antam regularly monitors liquid waste (effluent) quality disposed to environment in order to detect problem as early as possible and take corrective action immediately. The last PROPER ranking in 2005 for Nickel Business Unit Pomalaa and Gold Business Unit Pongkor are blue.35 Most of the waste contains nickel component that can be used as nickel ore substitution.25 0.845 tonnes of metals from slag treatment are being re-used in the process. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Case Study: Nickel Business Unit Pomalaa MATERIALS IN NICkEL MINING AND PROCESSING Description Nickel Ore Coal Reductor Limestone Anthracite Burnt Lime Carbide Others Reductor Ore preparation Reductor Refining Refining Refining Usage Ore preparation Total (thousand ton) 1. This recycle process can substitute nickel ore as much as 6. It happened as result of high rainfall during those months. The findings will be submitted to the authorities regularly.antam. hence such contamination may not occur. Therefore. besides improving the environment management effort to comply with the regulation. caused overflow of stockyard resulting in the waste with suspended dense content.com Sustainability Report 2007 .

03 < 0.022 0.01 Emission Antam monitors emission quality released to the air to ensure no pollutant above legal limitation and to detect problem as early as possible.02 < 0.0905 0 0.005 Highest 8.5 0.1 0.4 69 0.01 < 0.02 < 0.03 3 < 0. The findings are submitted to authorities on regular basis. the measurement result on all Antam’s operational area did not indicate below the emission quality standard set by the local and national regulation.005 0.01 < 0.0005 < 0.05 5 0. An independent laboratory is involved to do such inspection every three months.6 0.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam TREATED WASTE WATER QUALITY Pomalaa Effluent Parameter pH level Total Suspended Solid Copper Cadmium Zinc Plumbum Nickel Chrome Hexavalent Chrome Total Iron Cobalt Environmental Standard 6-9 100 2 0.327 0.028 0.005 < 0.4 Lowest 7 3.0015 0.2 0 0 0 0.0008 0.02 0.009 0.03 < 0.02 < 0.1 0.28 0.com .056 0.5 0.19 0.5 5 0.antam.1 0.02 0. This achievement due to various prevention efforts implemented in Antam operational areas.364 0 Pongkor Effluent Parameter pH level Total Suspended Solid Copper Zinc Chrome Total Cadmium Mercury Plumbum Arsenic Nickel Free Cyanide 38 Environmental Standard 6-9 200 2 5 1 0.005 < 0.002 0 Highest 8.005 1 0.5 0.5 345.01 < 0. In 2007.5 Lowest 7.11 0. Sustainability Report 2007 www.0005 < 0.

cyclone and electrostatic precipitator. It is also determined from the tailing content itself.744 dmt is being pumped to the tailing dam. Most of the waste materials (the stones with no ore content) are used for mining road and some is being put back to mine. calcinations. The use of slag is under permission from the Ministry of Environment. 96. the smaller the granules.527 dmt to mud collection dump. Most of the tailing is being backfilled to the mining stope. The tailing ability as plant agent depends on the tailing shape.271 dmt. Normally slag is a mixture of metal oxides and used as waste disposal mechanism on metal separation process. Tailing is material left Electrostatic precipitator at ferronickel plant. and as much as 89. Case Study: Gold Business Unit Pongkor From underground mining in Pongkor. the more difficult it is as plant agent due to bad soil drainage.antam.989 dmt. which was 135.com Sustainability Report 2007 .03 2 Highest 71 460 9 59 Pomalaa Lowest 0.43 0. 39 www. Case Study: Nickel Business Unit Pomalaa Gas emission management from ferronickel plants starts from the discharge from drying. The use of tailing has been approved by Ministry of Environment. from the ore separation process from hydrometallurgy process while slag is by-product material of metal separation from the ore from pyrometallurgy process. Different process methods result in different tailing and slag. total tailing volume was 186. Solid waste from nickel smelting plant amounted to 698.Policy. The tailing produced from processing has been tried as plant agent. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information EMISSION LEVEL Parameter NO2 SO2 Lead Particle Environmental Standard 1000 800 12 350 Pongkor Lowest 1 1 0.004 0.68 Highest 44.052 337 mg/l mg/l mg/l mg/l Unit Solid Waste Solid wastes usually come from mining activities such as slag and tailing. smelting and refinery process. The surrounding communities also use slag.060 tonnes of slag and used as filling materials for road and the beach.427 127 0. The emission control facilities at ferronickel plants are bag house filter.155 0.

Un-mined mineral components could be dissolved in the tailings Mining cycle is delayed. the volume of which could be very large. • • • Strengthening the base of the mines and improving the mine’s ventilation circuit. Such application will produce physical and chemical stability to the environment. This activity is done regularly. such as: • Tailings are kept underground.260 DMT volume of tailings. as needed. When the mine stope is ready to be filled. In 2007. Antam uses adhesive materials such as cement at Pongkor. On average. There are also several disadvantages of this method. This process has several advantages.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Burying the Waste. The application of this technique also allows the disposal of waste from mineral process. where flocculation process takes place to separate 40 solid slurry from the liquid one. such as: • • • The existence of groundwater pollution risk by the tailings.com . Supporting ore extraction process. Unused slurry will go into Fatmawati mud stockpile. Slurry is then streamed to a thickener facility. filling is done on three mine fronts every month. To reduce the risk of ground water pollution. and then pumped back into the mine. as much as 135.antam. As such. out of 322. the tailings will be mixed with cement in the backfill silo.989 DMT were being returned into the mining gap. In view of its environmental and social advantages. while the thicker part will go into the backfill dam. slurry from the plant is processed in the cyanide detoxification unit to eliminate the existing cyanide. The overflow will stream down to the tailing dam. Antam utilizes cut and fill underground gold mining process. Preventing the ceiling from collapsing due to excessive air pressure. negative impacts to the surface could be avoided. implements backfilling method by utilizing the tailings. During the gold mining process. It is also environment friendly as it does not require a vast tract of land to store the tailings. Saving the Surface Backfilling has been utilized in underground mining process for almost 100 years and this technology will likely continue to be used and perfected in the future. Sustainability Report 2007 www.

suppliers will take back empty packaging to be managed according to the regulation. Antam and Halimun Salak Mountain National Park Agency conduct research on Java Eagle (Spizaetus bartelsi).791 2.012. Even though Antam has no direct impact on protected biodiversity. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Hazardous And Toxic Waste (B3) Antam various mining processes resulted in various B3 wastes.000 Kg Unit Unit Liters Amount 1. Used Oil and Sludge Oil Used Grease Ashes Solid Hazardous and Toxic Waste Used packaging. This is important for Antam as always gives its best effort to live harmony with natural environment and surrounding communities.com Sustainability Report 2007 . Currently.Policy. 41 www. Antam is calculating greenhouse gas effect (GGE).antam. The government regulates the handling of B3 waste. Type of Waste Oil.862 520 96 3. Greenhouse Gas Antam also pays attention to the greenhouse gas emission. As realization of Antam’s concern.811 Units Liters Kg Kg At Logam Mulia. medical waste and others Used chemical bottles Used batteries Liquid Hazardous and Toxic Waste 21. flora and fauna survey has been identified species listed in Red List IUCN (2005). Antam applies in-situ processing (using incinerator) and involves professional B3 waste management service such as PT PPLI and PT WGI to manage waste that Antam could not process.658 ha or 44% of total area is located in the Halimun Salak Mountain National Park. In the future.539 3. Biodiversity From 6.047 ha of Pongkor mining area. approximately 2. contaminated materials. Antam expects the amount of GGE released can be independently calculated so reduction initiatives can be done. in line with the global demand to lower contribution on global warming. an endangered species on the red list of International Union for Conservation of Nature-(IUCN).

Cikotok (gold. Mine closure and post mining activities cover the following: • • • The rehabilitation of disturbed land. rambutan and durian while for wood producing trees is jenjeng wood. mango. which are allegedly by bauxite mining operations at Kijang in 2005. the post mining activities also involve the community in fruit and forest plantation (which used as an opportunity to create new opportunity). Revegetation is being done through observing diversity and functions of local species. 42 currently Antam faces claims from local communities in Tanjung Pinang on environmental issues. The type of tree utilized are mangosteen.com . Reclamation at the closed Gebe nickel mine. For example. Preparation and development of renewable local resources to support post mining activities. At Cikotok. Sustainability Report 2007 www. open pit). underground) and Cilacap (iron sand. the sedimentation problem in Pomalaa operational area is getting worse by the immigrant habit to cut down mangroves forest. Antam offers support in form of training and provide seeds. Mine Closure Plan And Post Mining Activities Currently Antam’s mine closure program and post mining activities take place at Gebe (nickel. therefore emphasize on multicultural replantation.antam. By returning the land to its function and use.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam NUMBER OF SPECIES SURROUNDING ANTAM SITE Category Critically Endangered Endangered Vulnerable Near Threatened Least Concern Data Deficient Fish 1 3 1 Birds 1 2 51 Other Fauna 2 3 2 Flora 4 2 3 12 1 Antam also concerns on the environment condition in its operational areas. Environmental Compliance Although Antam strives for conduct environmental management based on standards and regulation. Antam believes the claims will be settled favorably under applicable law and regulation. open pit).

Pomalaa Nickel Operations The planting of 450 trees (glodokan tiang. Approximately 300 people involved. jamuju. mahogany). communities and village officials. Head Office Approximately 10. mango.000 mangrove trees are planted at Angke Kapuk protected forest and Soedyatmo highway. durian. Antam took part in the effort to reduce global warming by planting as much as 4. Pongkor Gold Mine The planting of 1. The tree planting initiative is done concurrently in various Antam’s business units such as: Planting trees by Antam’s Employees. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Care that Goes Beyond Operation Area Antam Planting Program In the occasion of United Nation Framework Convention of Climate Change (UNFCCC) in Bali on December 2007. 2007. kayu biti) at Kolaka Sports Center involved more than 300 people.350 fruit plants (rambutan. Kijang Bauxite Mine The planting of 850 mahogany trees and 150 eucalyptus trees.000 trees concurrently at all its operational areas on November 28. Cilacap Iron Sands Mine The planting of 400 trees (Glodok/Pelindung) in Karang Benda village Adipala sub district involved about 200 people. Cikotok Gold Mine The planting of 400 trees (mango. guava. puspa. These activities involved communities surrounding operational area to raise awareness on the threat of global warming. rambutan. community leaders. jackfruit.100 people involved at Wacopek East Bintan sub district. Gebe Nickel Mine 400 mahogany trees were planted by 70 people.com Sustainability Report 2007 . 43 www. mangosteen and durian) in Pasir Laban involved 300 people. guava. There were about 350 people took part in planting.antam. North Maluku Operation: The planting of 400 trees (mango. ordinary people and local government. cempedak.Policy. papaya. and papaya). nutmeg. among others were employees. This event is planned to be held every year. jackfruit and petai) and 800 forest trees (rasamala. 30 people involved including Antam employees. The planting was planned in hope to benefit the local community while the type of trees planted in the greening program target areas carefully selected based on weather condition and the soil characters. longan. other companies.

South Sulawesi. Antam 44 has its own seeding activities where the seed is taken from the local species within the area. The area was formally mangrove forest that was cut down to open settlements and to meet the migrant needs on woods. as a habitat and breeding place to various coastal animals. The deforestation also caused the shrinkage of the fish communities in the vicinity. In 2007. Various species in the area are not just valuable from conservation aspect. In the area where mangrove forest is being destroyed for development. Antam expects program continues along with Antam’s reclamation activities until mangrove forest back to its original state. Antam invited various parties. The planting was done along the beach where Antam collaborated with Haluoleo University to get the plant species. seeding technique. therefore created tension between Antam and the surrounding communities.antam.5 ha of coastal land. Antam has planted 235. but also from economic standpoint. community realized the importance of mangrove forest. At the end. Central Halmahera (see box) and Java Eagle (Spizaetus Bartelsi) at Halimun Salak Mountain National Park. To shatter their belief that the sedimentation is the reason to the forest extinction and to help the local community to get their livelihood back and to cut down on the mining activities’ impact.com . its function to help to lessen water flow. Antam faced a specific challenge which was the streaming of sediment from mining area to the beach caused the beach is covered by red sediment. Furthermore.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Restoring Mangrove Forest in Pomalaa Mangrove Forest is a very important element in the coastal area. Because the success in mangrove trees planting. Supporting the Effort to Preserve Protected Fauna Antam operational areas are located near to areas with rich biodiversities. fertilization and the optimal planting season for the area. Sustainability Report 2007 www. The fishermen have to go out all the way to middle of the sea to get the amount of fish they need. Antam also educate communities of the mangrove forest function and benefit for all parties. The mangrove deforestation reduces the area’s ability to hold back the sedimentation that stream from Antam’s mining area.000 mangroves trees on 23. from leading researchers to national park bureau to do in-depth studies. Most of the local people blame Antam’s sedimentation as the reason of mangrove deforestation. therefore makes the sedimentation process better. the disruption on sedimentation process and the habitat function often create problems to the local people. they took part in Antam’s planting effort. As an example of the studies are the research on coconut crab (Birgus Latro) at Yoi Island. I n Pomalaa operational Area. therefore since 1991 Antam has carried out the mangrove forest planting as part of reclamation activities. Besides planting activities. One of Antam’s contributions to preserve protected species.

Policy. One of its potential natural resources and the current local favorite is coconut crab (Birgus Latro). working together with the team from Department of Water Resources Management. has abundant marine natural resources. we hope the findings can open ways for cultivating the species and regulating the catching based on it reproduction pattern. 45 www. Coconut crab is well known for its delicious taste and as specialty dish for the folks from Northern Maluku. the high economic potential may endanger their survival. Antam. the mine’s physical closure has achieved 60% and it is estimated that by April 2008. the species has high economic potential. thus. this little island with the population of 563 people. Sulistiono M. Bogor Agricultural Institute (IPB) lead by Dr. As part of Antam’s environment and social responsibilities to the area. Realizing the importance of conservation effort and sustainable fishery activities for this species survival. This matter is important because the closure of Antam’s mining activities in Gebe Island will significantly reduce the local government income as well as the local people’s income. population and reproduction pattern of coconut crab in Yoi Island. since 1996 there is deficient data on this animal group. Currently coconut crab is listed in the protected endangered species according to Government Regulation No. However. Furthermore. More studies on the lifecycle and the habitat of this animal need to be conducted. with the slow growth of coconut crab.com Sustainability Report 2007 .Sc. Priced at Rp50. 7/1999 on the plants and animals species preservation. It is no surprise that the growth is trailing the spread of coconut plants in 33 tropical countries. The crab is hand captured almost everyday.antam.000 when served in restaurants). there’s a decrease in the number of coconut crab captured. the closure will be completed).000 per kg (up to Rp300.is known to climb coconut trees. conducted a study on the habitat. now they are only able to get 5 to 6 crabs and the size are much smaller compared to years ago. According to testimony by the local fishermen. Although in 1983 until 1994 this anthropoid is categorized as rare species by the IUCN Red List. The large anthropoid – with the length reaching 1 meter and weight up to 17 kg. Like Gebe Island.. the Coconut Tree’s Best Friend at Yoi Island Yoi Island in the Regency of Central Halmahera is located 20 km from Gebe Island. (Currently. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Coconut Crab. we hope the study findings become an input for the local government to take action in preserving the species. providing an alternative livelihood and sustainable economic booster for the local community. Ir. If previously they could catch 20 crabs per night.

749 60 2.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Social Empowerment The Key Success Factor of Our Successful Performance Concerns towards workers. EMPLOYEE TURNOVER 2007 NUMBER OF EMPLOYEES 3. employees and indigenous people are the key success factors to corporate’s performance Human resources are among Antam’s most valuable assets. One of the reasons was because a number of operational areas such as Gebe. there has been an increase in non-permanent employees.antam.701 07 www. Antam strives to provide them with the best available working environment and conditions. Recruitment Antam strives to recruit the best candidates that are highly dedicated to the mining world. However.com . Therefore.300 2. Antam expects its employees to make meaningful contribution to the growth of Antam. Antam strives to continuously develop the skills of its work force to the highest level as possible in order the face future challenges. In return. Cikotok and iron sands mines had been closed down as the mine reserves had been depleted.852 13 11 11 5 6 3 1 1 2 11 217 129 136 4 Recruitment Jakarta Head Office Dismissal/Retired 04 05 06 209 46 Permanent Non-permanent Strategic Business Unit (SBU) Nickel SBU Gold SBU Bauxite SBU Logam Mulia Geomin Unit Sustainability Report 2007 2. As a mining company in Indonesia with the vision to becoming a company with an international standard in 2010. The amount of permanent employees declined in 2002-2007.

www. overtime pay. the provisions of Antam’s Quarter Impact Analysis are implemented at all operational activities. people and the environment in the workplace. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Employees Welfare Antam is committed to providing benefits especially to its permanent employees. The employee’s income components include: No 1 2 3 4 5 6 7 8 PERMANENT INCOME No 1 2 3 4 5 6 7 8 9 10 11 NON PERMANENT ALLOWANCE Main salary Representation Allowance Company’s Allowance Additional Company’s Allowance Position Allowance Special Allowance Work Performance Allowance Business Unit Allowance Reading Allowance Transportation Allowance Non-Practice Allowance Regional Allowance Shift Allowance Cashier Allowance Adjustment Allowance non-PHDP Wage Allowance Benefit increase Overtime Allowance Field Allowance 47 Occupational Health and Safety Occupational health and safety is one of the most important aspects that fall under the responsibility of both Antam and the employees. severance pay. The children who qualify for the program are those who are 25 years old or below.antam. work incentives.Policy. do not have any source of income and/or are not married. pension benefits. In the environment sector. business trip allowances. partners.com Sustainability Report 2007 . The pension program includes medical allowances for retirees and their families of three children. Zero Accident concept is applicable to all employees. The benefits were stipulated in the 2006-2008 collective bargaining agreement between the Management of Antam and Perpantam and they include cost of living adjustments. medical allowance and year end bonus. The education on HSE is also routinely held. It is one of Antam’s top priorities in its efforts to minimize all types and levels of accidents.

Rewards are given to employees based on competence and length of service with the company regardless of their gender.137.701 permanent employees and 136 nonpermanent employees.Pongkor. Diversity and Equal Opportunities Antam complies with the ILO Conventions number 100 on Equal Remuneration or Equal Pay for Equal Job and ILO Convention number 11 on No Discrimination in Employment and Occupation. The incidence happened due to the increased intensity of mining operational activities that contributed to the increase in risk in occupational safety and health. of which 20 employees (10%) are female. each at SBU Nickel . compensation.antam. Antam also complies with the ILO number 111 on equal salary for the same job. ethnicity.. Therefore. training. Antam strives to improve the workplace safety and health management system. Based on 2007 data. Health Management Antam is concerned about the medical benefits for its employees. allowance or personnel dismissal issues. Antam’s work force consisted of 2.North Maluku Operation and SBU Gold .Pongkor SBU Logam Mulia SBU Bauxite . Among the proactive efforts undertaken by Antam regarding health management is the education on serious illnesses for its employees.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam 2007 OCCUPATIONAL HEALTH AND SAFETY PERFORMANCE Unit Usaha Minor SBU Nickel Buli & Gee Nickel Operation SBU Gold .690 hours : 16. Sustainability Report 2007 www.Kijang Cilacap (post mining) Cikotok (post mining) TOTAL Total working hour Work days lost 9 11 4 1 1 26 : 15. There has been no report on any form of nepotism or gender. Out of this number. in February 2007.710 days Incident Category Serious 4 1 5 Fatal 1 1 2 13 13 5 1 1 33 TOTAL Two fatal accidents took place in 2007. Antam also conducted a lecture and a discussion on Dengue Fever and Avian Flu in Pomalaa with 379 participants as well as a first aid and survival training for 48 all of its employees. religious or age discrimination with regards to recruitment. The tragic accidents fell upon Antam’s mining business partner. For example. Antam held a scientific lecture on HIV/AIDS and illegal drugs. The medical services provided for all employees include preventive as well as curative treatments of illnesses/diseases. There is no discrimination against female or male employees on salary issue. working. 200 employees occupy managerial level position. especially for the business partners.com .

work analysis and organizational need analysis.antam. In 2007.5 training days every year.com Sustainability Report 2007 . However. Antam was able to improve the productivities of its employees as the training programs were conducted based on a learning need analysis. analysis. SBU Logam Mulia: 1. 10 04 05 06 07 Antam’s 2007 Training Man days: 1. Rp28 billion was realized. SBU Gold: 7. which exceeds its production target. Geomin Unit: 1. 49 www. The participants are chosen based on several considerations such as competency gap/strength Monitoring activity at Power Plant at Pomalaa. In 2007 more than 1.469 5.162 2. as well as CSR principles. Antam spent Rp14 billion in training programs while in 2006 the training spending reached Rp21 billion. 14 24 Antam strives to give each employee 12. was an example of this productivity improvement. the average training days were 10 days. Antam established a Learning Center in October 2006 at Jakarta Main Office. SBU Iron Sands: 435 6. The performance of Pongkor. The implementation of Antam’s training programs are based on the the needs of the organization. negotiation.815 4.4285 3. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information TRAINING AND EDUCATION EXPENSES (in billion Rupiah) 28 Improving of Work Force Skills Antam’s human resources policy requires Antam to develop the competence of an employee in accordance to the requirements of the employee’s position.265 In 2005. Head office: 2. out of Rp40 billion training budget. In 2007. and political skills. In 2007 the center was transformed into Learning and Assessment Center that offers three programs: (1) Competency Development Program (2) Productivity Program (3) Career Development Program.Policy. SBU Nickel: 1. They received hard competencies trainings in accordance to their roles and soft competencies trainings in communication.600 people received education and training that helped them find suitable jobs and positions within the company.

342 5.320 5.331 75. buyers. Internship program. The establishment of Perpantam is in agreement with the National Law (National Labor Law No 21/2000) and International Law (ILP Convention 87 and 98.552 Antam Management Development Program. 2. 9.069 0. Case study program. Doctorate degree).867 75. The management and the labor union of Antam encourage employees to work hard and smart with the motto “Perpantam for a better Antam” in order to realize Antam 2010’s vision on becoming a corporation with an international standard.068 0. Core Sector (mining.090 73. 3. 6.047 0. Pre-retirement Program.709 5. is to achieve a win-win situation. Meeting Coordination Implementation and Work Unit Consolidation Training.com .136 1 Index 10.417 71.767 78.185 5.136 77.594 11. Overseas trainings 7.158 0.antam. ALDP).900 67. The objective of the industrial relations among shareholders. employee candidates) The results of a survey conducted in 2007 on Antam’s employee work satisfaction after being enrolled into education and training programs on various related fields are as follow: Criteria Work Work Benefit Work Assessment Supervision/Superior Team Work Working Condition Communication & Information Self Development Organization Score 77.403 18.249 0. 10.047 9.238 81. investors and all stakeholders related to Antam’s operations.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam The training programs provided at Antam are: 1.992 3.137 0. Induction Program (For shift worker. Leadership Development Programs(AMDP. 4. and Collective Bargaining 99).071 0. E-learning Program (up to beginners study). Study aid and scholarship (Bachelor. The Freedom of Associations and Industrial Relations 50 The employees of Antam are free to join PERPANTAM (Persatuan Pegawai Aneka Tambang / Association of Antam Employees) or SPSI (Serikat Pekerja Seluruh Indonesia / Union of Indonesian Workers). 8. Sustainability Report 2007 www. geology and process) Specialist Development Program (ASDP). Master.066 0. 5.229 Weight 0.959 75.

if employees request 20 times increase in salary. but to help Antam improves its performance. Fairness Aspirations raised by the workers or policies implemented by the management should be fair and are acceptable to both parties. This institution will recommend solution to the problem. The management to be more sensitive to the employees’ conditions and to be more responsive to constructive aspirations. Perpantam and Management. Balance To have the balance between rights and obligations with regards to welfare issues. Guntur Tjora. The management to increase its cooperation with Perpantam to develop the company together to achieve a sustainable growth forAntam.Policy. Perpantam is one of the pillars that support the corporation. an independent institution registered at the Department of Labor. When agreement can’t be reached among employees. Perpantam has handled several conflicts well. 51 www. Furthermore.com Sustainability Report 2007 . its recommendation has been well received by all parties. Perpantam will not fight for the workers’ demands without studying the company’s condition. and up to this moment. For example. Head of Perpantam With the motto “Productivity and Welfare Together” that is inline with Perpantam’s organizational guidelines “Perpantam for a better Antam”. Perpantam adheres to the principles of: 1. 3. Perpantam expects: 1. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Statement from dr. Perpantam is not established to attack Antam. Perpantam and Antam’s management are in the same position. 2. Perpantam will only fight for aspirations that meet the principle of decency. we strive to create a conducive and harmonious business environment. Perpantam will view any request to employees to work overtime 5 times more often in a week by the management for example.antam. Perpantam will neither support any policy of the company that does not pay attention to the workers’ condition. Perpantam will view such demand as unreasonable. On the other hand. This mechanism has been agreed upon in the Collective Bargaining agreement . With regards to the workers’ rights and obligations. Perpantam will bring the problems to Bipartite. as an indecent request. 2. Equality Perpantam and Management are equals in making decision/policy involving the workers’ rights and obligations.

If a disagreement cannot be settled internally. ORIGIN OF EMPLOYEES 2007 SBU Gold Pongkor SBU Bauxite Kijang SBU Nickel Pomalaa and North Maluku Operations 23% 49% 22% 35% 52 77% 51% 43% From Nanggung Village. The Collective Bargaining chapter 16 verses 85-95 and chapter 17 verses 96-99 also regulates this issue. the workers. the dispute could also be settled through the Labor Court. indigenous people as well as the community surrounding the operation areas. Through its community development programs. Antam is committed to care for its human resources. Pongkor Outside Nanggung Village. Antam and the employees could request an arbitration proceeding from a third party. As the last option. Pongkor From nearby regions (Kijang and Riau Islands) Outside Riau Islands Southeast Sulawesi Other Sulawesi regions Outside Sulawesi Sustainability Report 2007 www. Antam’s business units are always trying hard to engage the local governments and local leaders to get their support on the company’s community development program. Antam is continuously learning on how to improve our interactions with local and indigenous people. It is a manifestation of the company’s appreciation to those who are behind Antam’s progress and success. staff. Respecting Local Community Rights Antam is fully aware and recognizes the sensitivity of the issues of local community rights in view of the complexity of those rights given the diversity of the Indonesian culture .com .antam.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Conflict Resolution Antam’s Human Resources Policy contains a clause that regulates the process of dispute settlement.

could also be interpreted as Antam’s commitment toward human rights issues. Policy on Child Labor and Forced Labor Antam is in compliance with the Indonesian Regulation on Labor as well as with the International Convention related to child labor and forced labor.. Among the issues that are discussed in the code of conduct are rights equality. Human rights issue is also stated in Antam’s code of conduct chapter 1 on Equality and Respects toward Human Rights. Antam believes that discrimination incident will not took place in the company. Implementation of human rights in Antam is based on the company’s human resource policy.Policy. The partnership will only be established once they undergo a selection process and the relationship with suppliers will be based on ethical principles. Antam created Nomination. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Implementing Human Rights Through Commitment And Education Discrimination is a violation to Human Resources Policy and code of conduct Human rights concerns are important issues that require Antam’s special attention since Antam’s business operations deal directly with people and communities. Antam requires the inclusion of human rights articles in the working contracts with all partners and suppliers. therefore the respects to human right principles can be maintain at highest standard. The socialization of code of conduct to Antam’s employees and partners is done continuously. Commitments to respect Human rights have been campaigned globally. which directly reports to the Board of Commissioner. Antam’s employees and the environment.antam. Antam oversees the implementation of human rights principles. freedom of association.The establishment of GCG Committee.com Sustainability Report 2007 . no children workers or forced labor and social protection Human Rights in Antam’s Code of Conduct Equality in a work place will stir the spirit among employees to give the best to the company that in turn will increase productivity and efficiency of the workforce. and not forced. Education Program on Human Rights The human rights education begins on the first day of work through induction regarding Collective Bargaining Agreement which contained the rights and obligations of the company. In its code of conduct. To monitor many aspects related to human resource and human rights. Remuneration and Human Resource Development Committee. Antam ensures that there should be no human rights principles violation in all of its operational activities. The minimum age of employees as stated in Antam’s Collective Bargaining Agreement is 18 years old and the relationship between employees and company has to be beneficial to both parties. so that any incidents of human rights violation against employees and the surrounding community can be prevented from occurrence. code of conduct and collective bargaining agreement. All of them refer to the national and international arrangements. 53 www. By adhering to this principle. With regards to supplier relationship. non-discrimination. Through these efforts.

The programs are applied to all of Antam’s operational area.com 43% . Partnership Program (PK) and Environment Management (BL). especially those surrounding Antam’s mine site and business operation. SBU Nickel North Maluku as well as Antam’s exploitation and exploration areas. The CSR activities in social economy sectors are: Community Development (ComDev) and Environment Development Antam carries out these programs to help the government in their effort to improve the welfare of the community surrounding the operational areas so they can lead a prosperous and independent life together with the company as it grows. Antam’s current and future CSR programs have and will go beyond the compliance of Law No.antam. from SBU Bauxite Kijang in Riau islands. One of the CSR embodiments is put forth in various activities as summarized in Antam’s CSR program. SBU Gold Pongkor in Bogor. Environment Development is a program to empower the social economic condition of the community in the operational area by using allocated budget from company’s profit. environment. 40 year 2007 on Corporation regarding CSR. Antam’s Community Engagement is included in its ComDev program. SBU Logam Mulia and Geomin Unit PARTNERSHIP PROGRAM BUDGET ALLOCATION 2007 8% 43% Sustainability Report 2007 www. UB Geomin and SBU Logam Mulia in Jakarta. CSR PROGRAM BUDGET (In billion Rupiah) Program Community Development Environmental Development Partnership TOTAL 2006 15 11 5 31 2007* 37 8 10 55 % Increase 150 (27) 108 78 Education is one of the main focus areas of Antam’s CSR initiatives. main office. Antam’s CSR programs on social sector are put forth in the implementation of Community Development (ComDev) Program. *The 2007 budget has not entirely included the Natural Preservation element (as part of CSR in accordance to PerMen BUMN 2007) 54 In one of the details. By applying the “beyond compliance” principle. Antam continuously studies and implements issues that are related to corporate social responsibility towards the community.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Building Sustainability Together with Community Antam implemented CSR long before CSR was campaigned globally Antam has implemented corporate social responsibility programs for a long time with satisfactory results. Meanwhile. ComDev and Environment Management program is inseparable from the company’s operational activities. COMMUNITY DEVELOPMENT BUDGET ALLOCATION 2007 8% 3% 12% 77% SBU Nickel SBU Gold SBU Bauxite Head Office. The program covers activities in social. SBU Nickel Pomalaa in Southeast Sulawesi. human resource and economy sectors.

Antam built Clean Water Facilites (SAB) to improve the life quality of the surrounding communities. SBU Nickel . Cikotok and Cilacap Overcoming malnutrition One of the routine programs at SBU Gold . worship houses.North Maluku Operation. Health Improvement 3. bridges and houses of worships in accordance to the local community needs.Pomalaa and SBU Nickel . Religious Facilities 5. Natural Disaster 6. This program provided the children with extra meal. They charge Rp1. In 2007. Antam also pays attention and accommodate other facilities that are deemed important and can improve the quality of life.Policy. schools. 55 Antam helps to build worship places at Pomalaa. Education 41% 21% 2. At SBU Gold . Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information ENVIRONMENTAL DEVELOPMENT The Community and Environment Development activities that had been done and are currently BUDGET ALLOCATION 2007 on-going are: 1. water from the water spring in Cileles Halimun Mountain is streamed down for 25 km to Cisarua and Malasari Village using bamboo pipes. either new buildings or repairing the existing facilities. Environment Preservation 7. For that reason. Clean water facility has been constructed in SBU Gold . immunization. The community provided manpower and self funding for a total amount of Rp100 million. At Antam’s operational areas. bridges. government and Antam. Geomin Unit.Pongkor. renovated the resident’s houses and many others. Infrastructure Development In addition to clean water facilities. green bean and other needs for 6 months. www. SAB in Pongkor is a collaboration effort between the community. Public Facilities 4. and a team from Antam and Village Integrated Service Unit (UPTD) monitored the development.Pongkor in 2007 was to support 30 children under 5 years old with malnutrition problem. Antam has built facilities such as roads. Active Involvement from community 8% 30% SBU Nickel SBU Gold – Pongkor SBU Bauxite Head Office. Clean Water Facilities Construction Clean water is an absolute necessity for the community. The direct benefit from the SAB is now experienced by 2000 people in the area. The parties who had been involved in the joint-cooperation contributed to the success of creating the Rp 1 billion clean water facility. and the local government acted as the coordinator of the stakeholders interests.antam. repaired school buildings. The local government and the community are responsible for the maintenance of the SAB facility in Ulu-ulu. Antam’s contributions were in form of raw materials and funds for a total amount of Rp900 million. the construction of public facilities and infrastructures.Pongkor. Antam has built roads.000 per family as SAB maintenance fee. has become routine. The program was implemented based on the data provided by the village officials and community leaders. milk.com Sustainability Report 2007 .

the eruption of Gamkomora mountain in North Maluku. there were only 1.7 million hectares in 1993. bed sheets and others. central Halmahera and earthquakes in West Sumatra. COMMUNITY DEVELOPMENT BUDGET ALLOCATION 2007 8% 3% 12% Antam aids victim of Gamkonora Mountain eruption at West Halmahera. Antam intends to help build communities that are independent and possess good quality of life. As part of Antam’s concerns to the poor condition of the country’s mangrove forests. Several areas that suffer natural disaster and are assisted by Antam’s Environmental Development Program are flood over Jakarta at the beginning of 2007.antam. Antam continues to be concerned about the well being of the surrounding communities. small and medium business (prioritizing those next to the operational area) with small administration fee that has to be returned in installment.000 trees at Angke Kapuk Protected Forest in December 2007. Caring for the senior citizen is form of Antam’s commitment to improve the quality of community health.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Revegetation-Green Antam Program Mangrove Forests in Indonesia have been experiencing degradation from year to year. Antam also sent out rescue teams to assist the people suffering from the disasters. they act as the ecosystem provider that supports life. 77% SBU Nickel SBU Gold SBU Bauxite Head Office. Natural Disaster Aid Natural disasters which occurred in several parts of the country were also assisted by the program. Partnership Program It is a program to empower small businesses to become strong and independent entities by using the fund from the company’s profit. Locally. Community Involvement Antam actively participates in local development and strives to support local government development policy through synergical CSR programs that are called Trimitra (Antam – Local Government . while globally. SBU Logam Mulia and Geomin Unit PARTNERSHIP PROGRAM BUDGET ALLOCATION 2007 8% 43% 43% 56 6% Managed through the Ministry of State Owned Enterprises Head Office and Cilacap SBU Nickel SBU Gold Sustainability Report 2007 www. Antam provided senior homes with medical supplies such as medications. Discussions on community needs and their realization plans take place at the Musrenbang.5 million hectares of Mangrove Forests. they have very important roles to lessen global warming. blankets. The program provides loans for micro. compared to 3. flood and landslide in Morowali. Antam sent aids to the victims of these natural disasters in form of foods. Trimitra facilitates the meetings and discussions for local development between the company. About 73% of the forests fall under damaged category. This situation is very dreadful considering Mangrove Forests are vital to the environment. Yogyakarta and Bengkulu. mattresses. Antam is planning to continue the program in the future. One of ComDev’s post-mining programs in Cilacap in 2007 was to care for the senior citizens. Antam planted 10. The program was carried out in collaboration with Jakarta Agriculture and Forestry Agency. Such meetings are called Development Planning Convention (Musrenbang).com . Medical Equipment Aid for Senior Home In the business areas where Antam has entered post-mining phases. medicines and medical services. community and local government. In 2005.Community).

antam. The existing seaweed cultivation groups were provided with additional financial capital for worker. 57 www. USA. and due to its success.000 to Rp7. This was the first time such a program was carried out by Antam. it will be continued in the coming years.500.com Sustainability Report 2007 . They were also given additional training on seaweed cultivation and processing. through buyers from other region) Cultivation Period: Harvested every 45 days. The first batch program was held in September until December 2007. the sea in this area is one of the three seas in Indonesia that are most suitable for seaweed cultivation. The local government also supported and socialized this program. Geomin Unit. Illiterate Free Community Movement (Gemasbastara) Program The success of illiteracy elimination program in the mining and regency of Kolaka area were the result of strong collaboration between The Aneka Tambang Women Association (PWAT) and Kolaka Education Agency. seed. nylon rope and building wood 30% platform. Based on a research on this business sector.500. The program’s instructors were school teachers and UPTD Kolaka Sub-district Education Agency. Total participants were 208 people in 7 villages.000 Exports to Japan. It was initiated by the PKBL team of SBU 8% Nickel Pomalaa by conducting a survey on the economic potential of the areas surrounding the mine.Policy. Cikotok and Cilacap • • • • • Amount of cultivation group: ± 25 groups @ 20-50 people Production Capacity: 5-17 ton per group (the demand can reach up to 100 ton) Price per ton: Rp6. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Snapshot of Antam’s CSR Program ENVIRONMENTAL DEVELOPMENT Pomalaa SBU Nickel BUDGET ALLOCATION 2007 41% 21% Seaweed Partnership Program This program was launched in 2005. especially the Kolaka regency. Learning activities included reading. Seaweed is one of the most valuable and competitive products of Southwest Sulawesi. China. SBU Nickel SBU Gold – Pongkor SBU Bauxite Head Office. writing and counting as well as practical knowhow skills such as sewing and cooking. etc (indirectly.

M.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Drs.000 pack of cement for this program. Antam’s presence at Regency of Kolaka is truly felt. such as public and infrastructure facility. Southeast Sulawesi The physical developments undertaken by Antam have moved the economy and improved the community’s welfare. 58 Sustainability Report 2007 www. The Illiteracy elimination program supported by Antam has also reaped great success.S Regent of Kolaka. There were at least 7. Antam also supports the Home Renovation program for the needy people conducted by the Kolaka local government. has directly or indirectly move the economy of the local people.H.antam. While Antam’s CSR programs are stipulated by law.Buhari Matta. health improvement and worship houses facilities. The benefits of Antam’s activities in health matters such as free medication and harelip operation can be felt by the local community and the people in general. The physical development contribution that was done by SBU Nickel Pomalaa.com . Antam’s sense of moral and social responsibilities cause Antam to continuously develop the communities together with the local population.000 homes that received floor renovation program and 800 homes that received disposal duct installation. education. Antam provided 20.

In the INACRAFT exhibition in 2006. and he won the first place for Best Craftsmanship. The reason that due to the long distance between the villages and the public hall. Udin first joined an exhibition with Antam at INKOWAPI (The Association of Indonesian Cooperatives and Female Entrepreneurs) in 2006.Policy. In one day work. Antam brings the doctors to visit a village’s public hall. his work was purchased to be used as the present for the winner of Adipura Award from the minister of Evironment. He refined his artistic talent at art school in Yogyakarta. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information SBU Gold Pongkor Ivory Stone Sculpture Partnership Program Although Udin has only officially partnered with Antam since 2006. Free Medication Program Partnering with doctors. They also wish that the doctors do not only come to the public hall. Partnering with Antam means more than expanding market opportunities. However. a stone which carries unique characteristics. especially if the patient suffers from heavy illness. but also to reach the people in villages. Antam has given special attention to Udin since 2002 for his business and talent in the ivory stone craftsmanship. who grew up in Pongkor area. It can also develop the talent and art skills of local youngsters. where the free medication program has been announced before hand. the local community wishes for an increased frequency of the doctor’s visit.000 patients. has had a talent in the art of ivory stone carving. the doctor normally can handle up to 2. the transportation cost can go beyond the medication fee.antam. The partnership provides not only financial assistance but also moral and knowledge support. Since he was small Udin. this once a year free medication program has truly been beneficial to the community. President Susilo Bambang Yudhoyono bought his work directly.com Sustainability Report 2007 . In Indonesia Expo and Kowani fair in 2006. 59 www. He is also a talented painter.

Simple Life Cycle Of Mineral Products • Tailing • Overburden Effluent mainly: . which is based on the Government Regulation no. compliance to specification and quick response in order to ensure costumers will get the best service. are not being directly used by the general consumers. Antam’s gold and silver products are not listed in the hazardous material list. bauxite and iron sands. ferronickel. 74 year 2001 dan Ministry of Labor regulation No 187 year 1999. therefore the exposure to human safety and health is relatively minimal. A survey conducted by the marketing department on customers’ satisfaction in 2007 showed the score on customer satisfaction index reached 80 (in the scale of 100). strives to take responsibilities beyond what is required by the law. with the exception of gold or silver bars produced by SBU Logam Mulia.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Responsibilities Towards Our Products Antam offers safe products and provide adequate safety information Antam’s products such as nickel ore. Silver Ferronickel Aluminium Metal Processing Industry End Product Use Open Pit Mine Bauxite Open Pit Mine Initial Process Shipment Production Initial Process Shipment • Overburden • Landscape • Run Off Water • Air Ambience End Product Sustainability Report 2007 www.com . Antam attaches safety and health information and Safety Data Sheet (SDS) on its ore packages to ensure that any possibility of negative impacts on human health can be prevented. Antam. Product And Customers’ Trust The marketing department is responsible for the shipments of Antam’s products to its customers based on the following principles: on time delivery. • Cyanide • TSS • Emission Processing of Gold Ore into Dore Bullion Processes Managed by Antam Underground Mine Emission Waste (Recyclable) Emission Processing of Dore Bullion into Gold & Silver Bar & End Product • Overburden • Landscape • Run Off Water • Air Ambience Gold Underground Reserve Nickel 60 Processing Nickel Ore Into Ferronickel Industrial Raw Material: Gold. however.antam.

and many other applications. Aluminum Lifecycle Aluminum is a metal that is commonly found and used in various applications that range from window or door frames. The material that contains gold.com Sustainability Report 2007 . nickel ore. is then sent to a processing plant to extract dore bullion. its resistance to oxidation and its ability to maintain its original character under extreme condition. Because of its flexible nature and unique characteristics such as its unchanging character when being exposed to oxygen. It was named after the village where it was found. car engine components to space shuttle. by a French geologist. Antam’s gold mines in Pongkor and Cikotok are underground gold mines. or the gold ore. Ferronickel is the main material to make austenitic stainless steel (SS 200/300) that is widely used by various industries. Bauxite is the main source of ore for the production of aluminum.antam. Nickel is mainly used in the stainless steel industry to enhance the quality of the steel such as by increasing the anti-corrosive and malleability characteristics of the alloy. which contains 6-15% gold and 90-92% silver. Antam’s bauxite ore is washed. In 2007 Gold production in Indonesia was estimated at 171 mt out of the world’s total production of 2. Gold Lifecycle Gold is mined using open pit mine or underground mine methods.Policy. Besides stainless steel. After being mined. nickel is also used in batteries. nickel is commonly used for commercial and industrial applications. coins. Les-Baux-de-Provence in Southern France.444 mt (about 7%). filtered and then kept in two-storage. Pierre Berthier. gold products. bauxite ore www. At Antam’s Pongkor mine. before being sold to alumina producers in Japan and China. The dore bullion is then sent to SBU Logam Mulia to be refined into fine gold and silver bars. 61 From top to bottom: Ferronickel. gold and silver are found bonded to each other within the ore. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Nickel Lifecycle Nickel is a white-silvery metal that is hard but can be shaped easily.

27 Not reported 62 Sustainability Report 2007 www. and proportion of spending on local suppliers at the area of operation.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Cross Reference with GRI-G3 ECONOMICS PERFORMANCE INDICATORS Economics Performance EC1 Economic value that is directly generated and distributed. employee compensation. Not reported 27 52 Indirect Economics Impact EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial. or pro bono engagement. in-kind. donations and other community investments.antam. EC9 Understanding and describing significant indirect economic impacts. retained earnings. EC3 Coverage of the organization’s defined benefit plan obligations. EC6 Policy. EC4 Significant financial assistance received from the government. EC7 Procedures for local hiring and proportion of senior management hired from the local community at the area of operation. and payments to capital providers and governments. practices. Page 25-27 Not reported 25-27 No financial aid from government Market Presence EC5 Range of standard entry level wages compared to local minimum wages at the area of operation. including the extent of impacts.com . including revenues. operating Costs. EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change.

EN14 Strategies. EN10 Percentage and total volume of water recycled and reused. 41 41 63 31 41. 45 42 www. by level of extinction risk.Policy. and reductions in energy requirements as a result of these initiatives. Page 36 35 Energy EN3 Direct and indirect energy consumption from primary energy source. EN12 Description of significant impacts by activities. managed in. current actions. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information ENVIRONMENTAL PERFORMANCE INDICATORS Materials EN1 Materials used by weight or volume. and services upon the biodiversity in protected areas and areas of high biodiversity value outside protected areas. EN6 Initiatives to provide energy-efficient or renewable energy based products and services. EN15 The number of IUCN Red List species and national conservation list species with habitats in Areas affected by operations. 33 34 Not reported No product relevant to this category 34 Water EN8 Total water consumptions by source. 44. EN13 Protected or restored habitats.antam. products. 31. leased. EN5 The amount of energy saved due to conservation and efficiency improvements. 35-36 35-36 35 Biodiversity EN11 Location and size of land owned. EN7 Initiatives to reduce indirect energy consumption and the achieved reductions.com Sustainability Report 2007 . EN4 Indirect energy consumption by primary source. and future plans for managing impacts on biodiversity. EN9 Water consumption that significantly affect the water sources. EN2 Percentage of the use of recycled materials. or adjacent to protected areas and areas of high biodiversity value outside the protected areas.

imported. Page Not reported Not reported 41 Not reported Not reported 35-36 41 Not reported No hazardous waste transported aboard Not reported Products and Services EN26 Initiatives to mitigate environmental impacts of products and services. exported. and the extent of impact mitigation. and percentage of transported waste shipped internationally. 42-45 Most of product shipped in bulk shipment Compliance 64 EN28 Monetary value of penalties and the total amount of expenses that arise from sanctions due to non-compliance to environmental regulations Transport EN29 Significant environmental impacts due to transporting of products and other goods and materials used for the organization’s operations. EN22 Total weight of waste by type and disposal method.com . EN24 Weight of transported. EN19 Emissions of ozone-depleting substances by weight. SO. and Waste EN16 Total direct and indirect greenhouse gas emissions by weight. EN17 Other relevant indirect greenhouse gas emissions by weight. and VIII. and transporting members of the workforce. EN27 Percentage of products sold and their packaging materials that are reclaimed by category. and other significant air emissions by type and weight. EN23 Total number and volume of significant waste spills. EN20 NO. 42 60 Overall EN30 Total environmental protection expenditures and investments by type. II. protected status. 30 Sustainability Report 2007 www. size. and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff. Effluents. EN21 Total water discharge by quality and destination. EN25 Identity.antam. EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Emissions. III. or treated waste deemed hazardous under the terms of the Basel Convention Annex I.

com Sustainability Report 2007 . and risk-control programs in place to assist workforce members. LA8 Education. counseling. and absenteeism by region. and other indicators of diversity. Not reported 48 48 Included in collective agreement Training and Education LA10 Average hours of training per year per employee by employee category. and region. LA9 Health and safety topics covered in formal agreements with labor unions. LA11 Programs for skills management and lifelong learning that support the continued Employability of employees and assist them in managing their career. LA3 Benefits provided to full-time employees Page 46. 47 Labor/management Relations LA4 Percentage of employees covered by collective bargaining agreements. lost days. Not reported Not reported Occupational Health and Safety LA6 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs. LA5 Minimum notice period(s) regarding operational changes. training. and region. employment contract. LA12 Percentage of employees receiving regular performance and career development reviews. minority group membership. 49 50 Not reported 65 Diversity and Equal Opportunity LA13 Composition of governance bodies and breakdown of employees per category according to gender. LA7 Rates of injury and fatalities. LA2 Total number and rate of employee turnover by age group.antam. LA14 Ratio of basic salary of men to women by employee category. gender.Policy. including whether it is specified in collective agreements. their families. prevention. age group. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information LABORS PRACTICES AND DECENT WORK PERFORMANCE INDICATORS Employment LA1 Total workforce by employment type. 52 Not reported www. 52 46 26. or community members regarding serious diseases.

antam. No decimation case Freedom of Association and Collective Bargaining HR5 Operations identified in which the right to exercise freedom of association and collective actions taken to support these rights. including the percentage of employees trained.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam HUMAN RIGHTS PERFORMANCE INDICATORS Investment and Procurement Practices HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. and measures to contribute to the elimination of temporary labor. 53 Non Discrimination HR4 Total number of incidents of discrimination and actions taken. Page Not reported Not reported 50. HR2 Percentage of significant suppliers and contractors that have undergone screening process based on human rights principles that have been implemented. 50-52 Child Labor HR6 Operations identified as having significant risk for incidents of child labor. and measures taken to contribute to the elimination of child labor. HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations.com . No case claim on indigenous conflict Sustainability Report 2007 www. 53 Permanent and Temporary Labor HR7 Procedures identified as having significant risk for existence of permanent and temporary labor. Not reported Security Practices HR8 Percentage of security personnel trained in the organization’s policies or procedures that relevant to human rights aspects and work procedures. INDIGENOUS RIGHTS 66 Not reported HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.

Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information SOCIETY PERFORMANCE INDICATORS Community SO1 Nature. during the operation phase. SO6 Total value of financial and in-kind gains as the results of contributions to political parties. politicians. SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. including the start of operation. No anti-competitive penalty 67 www. Page 54-59 Corruption SO2 Percentage and total number of business units analyzed for risks related to bribery and corruption. Not reported Not reported 20 Public Policy SO5 Description on general policy and contribution on the participation in public policy development and lobbying. and effectiveness of any programs and practices that assess and manage the impacts of operations on communities. and monopoly practices and their outcomes. and at the end of operation.antam. and government related institutions.com Sustainability Report 2007 .Policy. No anti-competitive case Compliance SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations. scope. 17 Antam does not receive financial benefit form nonoperational activities Anti Competitive Behavior SO7 Total number of legal actions for anticompetitive behavior. anti-trust. SO4 Actions taken in response to incidents of corruption.

by type of outcomes.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam PRODUCT RESPONSIBILITY PERFORMANCE INDICATORS Customer Health and Safety PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement. Page 60 No case claim on health and safety of product Product and Service Labeling PR3 Type of product and service information required by procedures. promotion. including advertising.antam. PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle. and voluntary codes related to marketing communications. including results of surveys measuring customer satisfaction. No case to information security Compliance 68 PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services. PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications. PR5 Practices related to customer satisfaction. and sponsorship by type of outcomes. Not reported No case to marketing communication Customer Privacy PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. No case to product provision Sustainability Report 2007 www. standards. 60 No case claim on product information 60 Marketing Communications PR6 Programs that support the adherence to laws. and sponsorship. by type of outcomes. including advertising. promotion. and percentage of significant products and services categories subject to such procedures.com . PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling. and percentage of significant products and services subject to such information requirements.

60 Makassar 90122 Sulawesi Selatan Ph.Policy. (62-405) 310 833 North Maluku Operations Office P. Sulawesi Tenggara Ph. Dr. 871 648. 5 Pomalaa. Kolaka 93652. 872 012 Fax. (62-411) 872 234. M.Fax.com Laporan keberlanjutan Antam 2007 . Ahmad Yani No. (62-411) 872 237 69 Rinanti Agnes Arsadjaja Surianto Suharno Syafri Isman Tuhiyat Tantiyo Budi Senior Manager Operations Controlling Senior Manager Tokyo Representative Senior Manager Human Resources Management Senior Manager Internal Audit Service Delivery Senior Manager Accounting and Budgeting Senior Manager Treasury and Financial Engineering President Commissioner Commissioner Commissioner Independent Commissioner BUSINESS UNIT EXECUTIVES Denny Maulasa Winardi Senior Vice President of Nickel Mining Business Unit Senior Vice President of Gold Mining Business Unit Vice President of Logam Mulia Precious Metals Refinery Unit Lukman Alie Vice President of Bauxite Mining Business Unit Vice President of Unit Geomin BUSINESS UNITS NICKEL MINING BUSINESS UNIT Pomalaa Nickel Mine and Ferronickel Plant Jl. (62-405) 310 171 Fax. . Jend. Basir Pim Premono Senior Manager Information Technology Group Senior Manager Environment and Post Mining Senior Manager Learning and Assessment Senior Manager Program Management Office Senior Manager Risk Management Senior Manager Corporate Strategic Development Group Senior Manager Legal and Compliance Corporate Social Responsibility Group Senior Manager Supply Chain Management Group Senior Manager Marketing and Customer Support Group Makassar Office Jl. Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information Corporate Information COMMISSIONERS. DIRECTORS AND SENIOR STAFF BOARD OF COMMISSIONERS Wisnu Askari Marantika Suryo Suryantoro Supriatna Suhala Irwandy Arif BOARD OF DIRECTORS D. Halmahera Tengah Ph.antam. Maba. Buli. Aditya Sumanagara Alwin Syah Loebis Kurniadi Atmosasmito Darma Ambiar Syahrir Ika President Director Operations Director Finance Director Development Director General Affairs and Human Resources Director CORPORATE INTERNAL AUDIT Tuti Kustiningsih Senior Vice President Internal Audit Robinson Tampubolon CORPORATE SECRETARY Bimo Budi Satriyo Senior Vice President Corporate Secretary Widyo Soesilo HEAD OFFICE SENIOR MANAGERS Achmad Djamalilleil Agus Yulianto Ari Karnalin Bachtiar Maggalatung Eko Marthias Hari Widjajanto Hikmat Gunantara Ibrahim S. Sam Ratulangi No. (62-21) 781 2736 www.

Bintan Kijang Tanjung Pinang 29151. Tokyo 107-0062. Jakarta 13210 Ph.antam. East 1507 1-1. (62-251) 681 543 e-mail : gold.pongkor@antam. (03-3423) 8031 Fax. 296 3043 e-mail: logammulia@antam. Jawa Barat Ph. Letjen TB Simatupang No. (62-251) 369 999 Fax. 11 Ternate 97727.com ANTAM TOKYO REPRESENTATIVE OFFICE New Aoyama Building. Maluku Utara Ph. 1 Pulogadung.com. 21686 Fax. marketing. Pemuda . Jakarta 13010 Ph.Introduction: A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam Ternate Office Jl.5380 Fax (62-21) 475 9860 e-mail : geomin@antam. Minami Aoyama. 1-Chome Minato-ku. 70 Sustainability Report 2007 www. 781 2635 : (62--21) 789-1224 E-mail : corsec@antam. 18 Pulogadung. (62-921) 22221.800 billion Issued and Fully Paid Capital Rp953.antam. Contact Us PT ANTAM Tbk Gedung Aneka Tambang Jl. Antam’s businesses are vertically intergrated from exploration and mining through to processing. Pos Nanggung Bogor 16650. Japan Ph. 1. (62-771) 61921 GEOMIN UNIT Jl. Lingkar Selatan. 1968 Authorized Capital Rp3.com LOGAM MULIA PRECIOUS METALS REFINERY BUSINESS UNIT Jl.8 billion Ownership Government of the Republic of Indonesia 65% Public 35% Line of Business A leading Indonesian diversified mining and minerals processing company. (62-21) 475.com . (03-3423) 8033 Name of Corporation Perusahaan Perseroan (Persero) PT Aneka Tambang Tbk or PT Antam Tbk Founded July 5. Kepulauan Riau Ph.com BAUXITE MINING BUSINESS UNIT Jl. Raya Bekasi Km. (62-21) 475 7108 Direct marketing (62-21) 478 65492 Fax.com lm@logammulia. Pemuda No. (62-21) 475 0665. Tanjung Barat Jakarta 12530 Indonesia Tel Fax : (62-21) 789-1234.com For more information please visit our website www. Batuangus No. 61520 Fax.Jl. and trading. (62-921) 22819 GOLD MINING BUSINESS UNIT PO Box 1. (62-771) 61177.

Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information www.com 71 www.com Sustainability Report 2007 .Policy.antam.antam.