Webinar notes; Good Mining Practice from MGEI.
On the 2nd June 2021 the Association of Indonesian Geologists [IAGI] with the Association of Indonesian Economic Geologists [MGEI] held a webinar on “Good Mining Practice [GMP] from the regulator, industry and its main stakeholders’ perspective”. This webinar was held in Indonesian, with nearly 200 attending, and supported by duniatambang.co.id The webinar went well beyond the scheduled half day schedule, with more than 125 attending to the latter question and answer session. A number of presentations used abbreviations that were not readily clarified during the presentation. I apologize for any errors or omissions, and that I was not able to attend the Q&A session.
The webinar did not address the engineering aspects of what is encompassed in conducting GMP, such as can be found in text books and some Mines Department regulations (e.g. safe highwall design etc). This webinar outlined a broad public expectation of what Good Mining Practice can bring to support the industry, the broader community and international goals.
The moderator, STJ Budi Santoso (MGEI chairman) opening remarks indicated that the webinar was hoped to encourage discussion amongst university students, industry, regulators and other stakeholders. Good Mining Practice supports the ongoing positive development of the Indonesian mining industry, and reduces the negative impact and perceptions of the mining industry. Good Mining Practices are an essential component for Sustainable Development and a good moral outlook for the mining industry. The Government has issued extensive and detailed regulations on GMP from the Mines Department, Department of Environment, Human Resource, Finance etc.
Burhanuddin Nur (IAGI chairman) reinforces Budi’s opening remarks and further emphasized that the GMP is of benefit to the mining industry, along with the people and environment directly impacted by the mining activity, as well as the broader range of stakeholders and public. It is hoped this webinar will be of particular interest to fresh graduates entering the mining industry.
MAIN SPEAKERS
Ridwan Djamaluddin – Dirjen Minerba KESDM RI. This presentation avoided the boring repetitive listing of detailed regulations, blue-sky futuristic goals and half promises typical of some government departments. This was a positive feel presentation that gave encouragement in that the Mines Department is on the right track, and is communicating meaningfully with its stakeholders.
Pak Ridwan started his presentation by outlining the role minerals play in our modern world, the regulatory framework and the Mines Department state of the art systems to implement GMP in the field, and for the overall management of the industry. The Mines Department also collaborates with other ministries (forestry, environment, manpower etc) to ensure coordinated working rules for a growing mining industry. The national objectives on critical minerals, climate change along with World Trade practices include some of the broader concerns of the Mines Department.
It is important the mining industry remains a stable industry, where social conflict is to be reduced and resolved through the mining industry adopting good social practices. Indonesia can achieve global goals through developing its own pathways, which must include maintaining national growth that will uplift every day Indonesians. For example, Indonesia shall continue to use its coal to produce power (to run industry, supply electricity to households), while adopting technology, and undertaking research, to reduce the negative environmental footprint of coal power. The government and industry shall work together to educate and socialize the broader community to combat the NGO speculative negativity of mining, to promote the positive nature of mining. The Mines Departments encourages responsible investment.
Ruandha Agung S. - Dirjen Planologi Hehutanan dan Tata Lingkungan KLHK.
Pak Ruandha outlined the scale of Indonesia’s forests, identified key regulations, the steps to obtain permits for miners to operate in the various classified forestry areas, and some updated reclamation requirements. The Forestry department is now using various forms of remote sensing to monitor compliance with forestry and environmental regulations.
S. Witoro Soelarno – Pemerhati Pertmbangan Nasional. Emphasized the concept that a Resource Curse should instead be looked upon as a Resource Blessing.
Adopting GMP shall include care for the people and the environment, being a good global citizen, underpin Sustainable Development Goals and attract responsible investors. Indonesia’s population density is much higher than many developed countries, wherein GMP is important to reduce domestic tensions, while providing opportunities for local Indonesians to develop. GMP includes supporting domestic goods and services, (e.g. substituting import fuels with biodiesel). Indonesia is blessed with substantial mineral industries of coal, nickel, gold etc that should be exploited before substitutes (graphine etc) can be developed to undermine the value such natural resources can bring to Indonesia.
Sukmandaru Prihatmoko – Past President MGEI IAGI.
Sukmandaru presented some well-designed slides to emphasize the importance of new minerals to sustain our present lives. Globalization terms such as Green Revolution, Critical Raw Materials, Transparency Initiative, Circular Economy and Urban Mining are all underpinned by GMP. The IAGI supports the International Council of Mining and Metals (ICMM) ten principal for the mining industry, and merges these with the present issues facing the new era of Indonesian mining, including good corporate governance, safe working practices, social awareness, and a range of environmental concerns.
More practical issues that are under discussion within the IAGI include; the decision to high grade a deposit for optimal return on investment, or to optimize the whole deposit for a lower rate of return. The IAGI has introduced the internationally recognized KCMI code of practice for Competent Professionals to report resources and reserves.
Suryo Eko Hadianto – Direktur Utama PT. Bukit Asam Tbk (BA)
Suryo started out with the usual SOE presentation of outlining the company’s mission, vision, scope of business enterprises, and the measures they are taking to protect the environment. BA have estimated their CO2 emissions along with practical steps to reduce / offset such emissions. BA is supporting a broader business model for their mining towns to include tourism, farming etc.
Alexander Barus – CEO PT. IMIP.
Alexander approached the subject of GMP from a different direction. He called upon a range of personal experiences in the mining industry with the presentation title “Management Pertambangan: Konsep dan Pengalaman”. The underlying concept is to be “friendly” within the management team, with the local population, local officials and friendly with the environment. These concepts are also to be incorporated in the business fundamentals of competitiveness and sustainability. Good Mining Practice to include a good working environment, fair and on-time wages, balanced diet and commitment to the environment. A balance is required between a justifiable profit, optimal use of reserves and business competitiveness.
COMMENTATORS.
Ibu Ipuk Feistiadi – Bupati Banyuwangi; This district in Java hosts a gold mine that implements good mining practice. Ibu would like to seem more of this type of responsible mining investment, and encourage the Mines Department to promote exploration, and to encourage BUMD (local government enterprises) to join with private investors in this long-term high capital business.
Faisal H. Basri – Ekonom Nasional; made a short contribution titled “Tata Kelola Penambangan yang baik dan benar” (good governance) wherein the mining industry is to support the maximum wealth creation & social benefit in the country. An example of the nickel smelting industry outlined the investment value Indonesia received, though questioned if it was time to review the present returns from production, in consideration of Indonesia’s global nickel position.
Potro Suprapto - PT. Lorax Indonesia; expressed concern that implementing the numerous government regulations, and maintaining a cost-effective business was becoming more difficult.
Soeryo Adiwibowo – Institute Pertanian Bogor; outline his new branding of “People, Planet and Profit”. Soeryo would like to place more emphases on the development of AMDAL in the planning stage. GMP could also further emphasize combatting corruption.
Eko Teguh Paripurno – UPN Veteran Yogyakarta; emphasize the importance of environmental concerns and modelling to contribute to GMP.
Rizal Kasli – PERHAPI; emphasized that Indonesia was rich in mineral commodities, mentioned the cautious global investor outlook on the Indonesian mining industry, and the domestic role of the mining industry has in supporting Indonesia’s development. PERHAPI is discussing a number of topics that come back to good Mining Practices, including zero waste, possible sovereign wealth fund and more. Unfortunately, a few examples of bad mining practices can be emphasized by the media, whereas we need to counter with public programs on good mining practice.
Adi Maryono – Ketua KOMBERS KCMI. Suggested GMP could also be seen as Global Mining Performance. Mining is a key “engine of transformation of Indonesia” wherein the introduction of a mine can stimulate that district to “take off” to become more financially independent, improve public facilities (hospitals, schools etc) and improve people’s wellbeing. A key factor in support of Good Mining Practice is for greater transparency of governance – both for corporate and government parties.