PT Berau Coal Code of Conduct

Code Application
All management and employees of the Company are required to comply with this Code at all times during which business related activities are being performed.

Violation of this Code will include:

direct contravention of any clause within the Code;
failure to report a known or suspected contravention;
disadvantaging in any way any person who has reported a known or suspected contravention; and/or
failure to cooperate with the Company’s investigation of possible contraventions of this Code.

In the event of any doubt of responsibilities and obligations in relation to this Code, management and employees should seek advice from their General Counsel.

Code Structure

The Code contains four sections, each addressing a major area of our activities and responsibilities:

Business Conduct
Workplace
Business Partners
Communities and Environment

For each section there is an overall Guiding Principle and our Statements of Expected Conduct with supporting outline explanations.

The Code is principles-based and does not contain guidance or instruction on specific practices. We are currently reviewing policies and practices, including those already in place across the Company, to ensure consistency with this Code of Conduct.

Raising a Concern

All employees are encouraged to report and express their concerns regarding any suspected or known violation of this Code and must do so in good faith, fairly, honestly and respectfully.

Line management are responsible for addressing, and elevating where appropriate, all concerns raised.

Nobody who raises a concern must be made to fear any form of retaliation or disadvantage for doing so.

1. Business Conduct

Guiding Principle: We are committed to conducting business in an open, honest and ethical manner, which is essential for our reputation and building trust and respect with our key stakeholders.

Statements of Expected Conduct (with outline explanation)

We do not tolerate any form of bribery.
A bribe is the act of offering, promising or giving a financial or other advantage to another person with the intent to induce improper performance. We are committed to doing business in an open, honest and ethical manner and complying with all applicable local and international laws in respect of bribery and corruption.

We do not participate in any money laundering activity.

Money laundering is dealing in any way with illegally gained money.

We do not accept or provide gifts and entertainment which cause inappropriate influence over the recipient.

We value building strong business relationships, but in doing so we must not offer or accept personal gifts or entertainment that could risk any inappropriate influence towards a particular party. This applies to direct payments and any other benefit, including the provision of goods or services, personal favours and entertainment.

We seek to be vigilant to potential conflicts between personal interests and the interests of the Company.

A conflict of interest occurs where an individual’s interest might influence, or be perceived as being capable of influencing his or her judgement, even unconsciously, away from what is in the interests of the Company.

We ensure that all financial and non-financial information created and retained within the Company is complete and accurate.

This standard of practice is required to meet legal and regulatory requirements, fulfil our responsibilities to our stakeholders and enable us to make informed decisions about our business.

We provide accurate and timely information to external stakeholders.

This is a legal obligation of a public company. It is essential to avoid damaging or compromising the integrity or reputation of the Company. All information should be prepared and reported in accordance with the Company’s Disclosure Policy.

We protect against inappropriate use of confidential and privileged information held inthe Company.

Confidential and privileged information includes information that is not generally available concerning our activities, results, or plans which could have an impact on our competitiveness or represent price sensitive information (i.e. insider information). This information must not be disclosed outside the Company or in an inappropriate manner within the Company. Confidential information must never be used for personal gain by anyone. Guidance on price sensitive information is included in the Company’s Disclosure Policy.

We expect our employees to protect and use the Company’s assets appropriately.

We expect the Company’s assets to be used for business purposes only. Unauthorised removal of equipment, supplies or other resources is regarded as theft. Management and employees are responsible for ensuring the Company’s assets are used appropriately at all times.

2. Workplace

Guiding Principle: Achieving high standards of personal wellbeing, including provision of a safe and respectful working environment, is central to the success of our business.

Statements of Expected Conduct (with outline explanation)

We are committed to creating a safe and healthy environment for all employees and contractors.

We do not compromise our health and safety values for profit or production. We uphold the principle that working in a safe and healthy environment is a condition of employment.

Individuals are accountable for applying and communicating our health and safety policies at all times and in all circumstances.

We do not tolerate any improper behaviour or harassment.

Improper behaviour constitutes any behaviour which is not in accordance with generally accepted cultural and legal norms.

Harassment arises where an individual feels threatened or harmed by the actions of another person.

We promote diversity, fairness and respect in our working environment.

We prohibit decisions made on any attributes unrelated to job performance. These include race, ethnicity, colour, gender, religion, personal associations, national origin, age, disability, political beliefs, marital status, sexual orientation, family responsibilities.

We expect all decisions relating to supplier selection and continuance as well as employee development and progression to be based on proper evaluation.

We respect personal privacy and confidentiality.

We do not disclose any personal information relating to individuals unless it is required by law, to fulfil our obligations as your employer or to carry out our legitimate business interests, or where explicit consent from the individual has been granted.

We are committed to developing our employees and providing recognition based on success and achievement.

Development is achieved through training, mobility and ongoing support.

Reward of our employees should be commensurate with their contribution to our success.

3. Business Partners

Guiding Principle: We will maintain our standards of business conduct in our dealings with all business partners, to promote mutually beneficial relationships and protect our reputation.

Statements of Expected Conduct (with outline explanation)

We shall trade lawfully and properly at all times.

We respect all relevant legal requirements and expected practices, including trade controls imposed by international authorities, both in the countries of our operations and those countries which form part of our business value chain in terms of obtaining supply of materials and delivering product.

We do not win or seek to maintain business or any business relationship by acting illegally or in contravention of contractual arrangements.

Relationships with customers and suppliers should be fair and honest, at commercial rates and in compliance with contractual undertakings and applicable laws and regulations.

We expect all contractors, intermediaries and agents acting on behalf of the Company to follow the principles of our Code of Conduct.

Selection, contracting with and management of third parties and/or agents who act on behalf of the Company is important to prevent improper conduct that could damage our reputation and expose the Company and individual employees to legal or other sanctions.

4. Communities & Environment

Guiding Principle: Protecting and sustaining the communities and environment in which we operate are fundamental to maintaining our licence to operate and being a sustainable business.

Statements of Expected Conduct (with outline explanation)

We are committed to developing the highest standards of environmental protection and stewardship.

We do not compromise our environmental values for profit or production.

Our strategic and operational decisions will be guided by best international environmental practices for the energy and mining industries, in addition to local requirements and expectations.

We uphold human rights in the areas where we can exert influence and impact.

Our standards are based on recognised international conventions on human rights including the UN Universal Declaration of Human Rights.

We will partner with, and invest in, communities close to our operations to achieve mutual long term benefits.

Strong community relations that result in favourable advocacy allow us to continue and expand our operations. This includes local, regional and wider global communities.

We seek to maintain proactive and constructive engagement with the local communities affected by our planned and operating assets, and invest to help them develop in a sustainable manner.

We will contribute to socio-economic development.

Economic contributions comprise our tax payments, royalties and other local payments and donations. We will provide transparency in respect of our contributions and their impact.

We will be active participants in the ongoing global debate on environmental and social stewardship.

We want to apply best practice. Investment of our time and resources in support of recognised local, national and/or international initiatives enables us to contribute to the development and determination of best practice.