Energy management

During 2012, PT Berau created an Energy Management team that brings together representatives from all departments that influence energy use. During 2013, this team has focused on developing initiatives to realise fuel savings and there has been regular reporting to management on fuel consumed by both PT Berau and contractors. Fuel consumption is a key metric against which contractors are measured, and is discussed as part of regular performance assessments.

Table of PT Berau and contractors’ fuel consumption

Indicator Unit 2013  2012
Fuel use Million litres 280.28 287.09
Fuel use intensity Litres/tonne coal 11.94 13.66

In addition, during 2013 an independent provider was commissioned to perform a preliminary audit of energy consumption cross mining operations. The findings have been presented in February 2014 and will be used as a basis for further energy efficiency programmes during the year.

Greenhouse gas (“GHG”) emissions

One important element of our approach to environmental management is measuring and managing our GHG emissions.

As a UK listed company, the Group is required to report its GHG emissions under the recent amendments to the Companies Act. For the first time during 2013, we have gathered data on the GHG emissions of PT Berau. These are shown in the table below. We have prepared these in line with the GHG Protocol developed by the World Business Council for Sustainable Development, and additional guidance issued by the UK Government Department for Energy, Food and Rural Affairs (“DEFRA”).

We have applied an operational control approach in presenting our emissions data, and have reported on all material emission sources within scope 1 (combustion of fuel and operation of facilities), scope 2 (purchased electricity) and scope 3 (includes indirect emissions from transportation devices and LPG used by contractors but excluding business travel) for PT Berau Coal. We have not included any information in respect of emissions from other companies within the Group, including those from other operating subsidiaries of PT Berau Coal Energy TbK. We will collect this data during the year and include it in our 2014 Annual Report. During 2014 we will also collect data on business travel for PT Berau.

For PT Berau, since contractors perform all coal mining and support activities, we have considered emissions from contractor fuel use to be a scope 1 emission source. We have not included emissions due to electricity use at Asia Resource Minerals’ London office since these are considered to be immaterial for the overall Group.

The two largest emission sources are fuel use and mine gas release. As reported above, there is a focus at PT Berau on reducing fuel consumption and realising efficiencies and we expect this to improve our GHG intensity in future periods. The release of mine gas is an unavoidable aspect of our operations and, whilst currently difficult to reduce, we will remain open to options to manage or divert these emissions.

GHG emissions sources

For the year ended 31 December 2013 GHG emissions (tonnes CO2e)
Scope 1 emissions (comprising PT Berau and contractor fuel use in generators and vehicles, and mine gas process emissions) 1,281,824
Scope 2 emissions (purchased electricity) 2,524
Selected Scope 3 emissions (contractor shipping and floating crane operations) 15,388
Total PT Berau GHG emissions 1,299.736
GHG emissions intensity (tonnes CO2e/ tonnes coal) 0.06

Land management and biodiversity

Land disturbance and revegetation for mining operations is controlled through the environmental permit conditions, which require a fund to be set aside (the “Land Reclamation Bond”) that can be recovered when revegetation is approved as complete by the government. In 2013, actual land disturbed is lower than plan (57%), while the amount revegetated is above plan (156%). Land disturbed is behind due to production plan changes reflecting low coal prices, which have meant three planned disposal areas at the Lati mine were not required. In addition, some land that was previously planned to be used has been released and reclaimed by the local community. Revegetation has exceeded plan due to the early completion of some blocks at the Samabarata and Binungan mines which have been planted during the year.

Under international definitions, land is considered to be “rehabilitated” at the point at which it is certified to meet “agreed end use”. We consider this to be the point at which land is returned to the Indonesian government. As at 31 December 2013, and in line with the life of mine plan, no land is yet considered to be “rehabilitated”, but we will report this in the future when our operations reach this level of maturity.

  Actual  Plan
2013 (ha) 2013 cumulative total (ha) 2013 (ha) 2013 cumulative total (ha)
Land disturbed 1,005 8,626 1,761 9,383
Land revegetated 267 2,810 171 2,714

Environmental incidents

We focus on seeking to minimise our environmental impact. Regrettably the Group had one reportable spill event during 2013. A leak within a diesel generator set at the Binungan mine caused approximately 2,800 litres of diesel oil to leak into local trenches and creeks. Corrective action was taken to ensure that oil did not leak into the main river, and 1,400 litres of the spill were recovered. The incident was reported to the local environment body and actions taken as necessary to ensure this does not happen again. These included revision of generator work instructions and additional guidance given to Plant Management and Maintenance teams. Laboratory testing and water monitoring has not shown any lasting impact to the local ecosystem and no sanctions have been imposed on PT Berau.