3rd Governor’s Climate and ForestsTaskforce meeting 2010 – Banda aceh 18-20 May 2010

PT. KELIAN EQUATORIAL MININGMINE CLOSURE

....working together for sustainable solution...

3rd Governor’s Climate and ForestsTaskforce meeting 2010 – Banda aceh 18-20 May 2010

KEM

KEM Site Location

3rd Governor’s Climate and ForestsTaskforce meeting 2010 – Banda aceh 18-20 May 2010

Polishing Pond

POST-235

Namuk

Lingau Plateau

Upper Nakan

Ex-Pit

Wetland

Lower Nakan

KEM Contract of Work/Lease Area – 6750Ha

3rd Governor’s Climate and ForestsTaskforce meeting 2010 – Banda aceh 18-20 May 2010

KEM SummaryKEM operations in accordance with 1985 Contract of Work (CoW) and Pinjam Pakai agreement with Dept of Forestry. KEM commenced production in 1992

KEM ceased mining activities in May 2003 and ceased processing of stockpiles in February 2005

Reclamation and rehabilitation activities for mine closure completed in 2008.

KEM will continue monitoring programs until closure criteria is achieved and CoW relinquished– expected by 2013

Post 2013 monitoring will continue by PT Hutan Lindung Kelian Lestari – funded through trust fund

3rd Governor’s Climate and ForestsTaskforce meeting 2010 – Banda aceh 18-20 May 2010

Closure Planning & Preparation

• In 1998 KEM developed Closure Planning Guidelines which were used to then develop the mine closure planning process

• In 1999 a Mine Closure Steering Committee (MCSC) was established to set the direction for the development of the final KEM Mine Closure Plan. The final meeting of the MCSC was held in June 2003

• A number of technical, community and employee surveys were undertaken to gather relevant information to assist in the mine closure planning process

3rd Governor’s Climate and ForestsTaskforce meeting 2010 – Banda aceh 18-20 May 2010

MCSC

• The committee was co-chaired by the KEM President Director and Bupati Kutai Barat

• MCSC membership comprised representatives from government (local, provincial & central), communities, NGOs, universities and KEM.

• MCSC operated under an agreed Charter and administration was conducted by a Secretariat.

3rd Governor’s Climate and ForestsTaskforce meeting 2010 – Banda aceh 18-20 May 2010

Govt. KEM/RT

Representatives from Stakeholders

1.Dams 2.Environment 3.Site&Assets 4.ComDev

Working Groups

Secretariat

Mine Closure Steering Committee (MCSC)

Community Universities

3rd Governor’s Climate and ForestsTaskforce meeting 2010 – Banda aceh 18-20 May 2010

MCSC Process• Consultation with

all stakeholders• Working groups

established for:– Dams– Environment– Site assets– Community

• 2-way information• Decisions made

through consensus• Conflict resolution

Representatives

MCSC

1 2 3 4

Working Groups

Secretariat

3rd Governor’s Climate and ForestsTaskforce meeting 2010 – Banda aceh 18-20 May 2010

PROPOSED PROTECTION FOREST AREA – 6750Ha

3rd Governor’s Climate and ForestsTaskforce meeting 2010 – Banda aceh 18-20 May 2010

Post Closure Commitments

• Monitoring – surface water quality, groundwater quality, rehabilitation succession, fauna succession, geotechnical stability, employee and community welfare

• Maintenance – permanent structures, wetlands, rehabilitation

• Security – permanent structures, forest protection

• Beneficial uses – in accordance with forest protection plan (perda)

3rd Governor’s Climate and ForestsTaskforce meeting 2010 – Banda aceh 18-20 May 2010

Post Closure Institutions

• PT Hutan Lindung Kelian Lestari (HLKL) established to act as vehicle for long term monitoring, maintenance & protection of site

• Yayasan Anum Lio (community foundation)

• Funding for institutions through trust funds– Long term Monitoring&Maintenance US$11m– YAL US$2.4m

• Board of trustees from stakeholders