antam sr 19 june-1

www.antam.com

Operating Sustainably

Sustainability ReportYear 2007

Corporate ProfilePlease see page 8

Corporate Policy,Corporate Governance, and

Management SystemPlease see page 16

Sustainability PerformancePlease see page 24

Corporate ProfilePlease see page 8

Corporate Policy,Corporate Governance, and

Management SystemPlease see page 16

Sustainability PerformancePlease see page 24

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

CROSS REFERENCE WITH GRI (G3) 62

CORPORATE INFORMATION 69

HIGHLIGHT 1

INTROdUCTION: A CLOSER LOOk AT THIS

REPORT3

LETTER FROM THE BOARd OF

COMMISSIONERS4

LETTER FROM THE BOARd OF dIRECTORS 6

CORPORATE PROFILE:

INTROdUCING ANTAM8

ANTAM IN BRIEF 9

ANTAM IN FIguRES 2007 12

CERTIFICATION ANd ExTERNAL ACkNOWLEdgEMENT 13

OPERATIONAL ANd dEVELOPMENT AREA 14

POLICY, CORPORATE GOvERNANCE ANd

MANAGEMENT SYSTEM16

IMPROVINg THE CORPORATE gOVERNANCE ANd MANAgEMENT SySTEM 17

IMPLEMENTINg AN INTERNATIONAL STANdARd MANAgEMENT SySTEM 22

STAkEHOLdER ENgAgEMENT 23

Table of contentsTable of contents

EconomyWe 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.

EnvironmentAntam’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.

Highlight

Introduction:A Closer Look at This Report Letter from the Board of Commissioners Letter from the Board of Directors Corporate Profile: Introducing Antam

2

Sustainability Report 2007 www.antam.com

SocialAntam is committed to participate in the community development surrounding its mines by utilizing the Community Development program, the Partnership Program, and the Environmental Development Program. In 2007, Antam spent Rp55 billion on community development activities, an increase of 69% compared to 2006.

Antam spent Rp28 million, an increase of 30% compared to 2006 on employee education and training.

Target Indicator Unit 2007 Target 2007 Actual

Operational Process (Productivity)

Nickel tonnes/employee/day 0.0309 0.0319

Gold (Pongkor) gram Au/employee/day 7.59 7.37

Precious Metals Refinery (Logam Mulia)

kg dore/employee/day 0.795 0.980

Operational Risk Work and Safety Health Score Zero Fatal Accident 0 2

Regulation and Environmental Process

GCG Index Index 80 82.07

Mine closure (On Time Schedule)

Percentage 50 55

Effectiveness of Community Development & Surrounding Community Program

Percentage 100 100

Employee skill and competency

% of HR Composition Best Practices

Percentage 100 107

Target and Achievement 2007

www.antam.com

Policy, Corporate Governance and Management System Sustainability Performance Cross Reference with GRI – G3 Corporate Information

3

Sustainability Report 2007

The 2007 Sustainability Report is our third yearly presentation of the summary of our contribution

to sustainable development. For the second time, the format follows the framework set out by

the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines G3.

We believe the framework will be useful as a reference for the information contained in this report.

This report presents information related to the sustainable development practices at all of our

business units.

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, especially in the areas of economics,

environmental management and community development.

We would be pleased to hear any question or feedback to further improve our report in the

future. We believe your opinion will help us to reach our goal in implementing a world class

sustainability initiative.

Introduction:A Closer Look at This Report

4



Ir. Wisnu Askari MarantikaKomisaris Utama

From left to right: Prof. Dr. Ir. Irwandy Arif, M.Sc.,

Ir. Supriatna Suhala, M.Sc., Ir. Wisnu Askari Marantika, Ir. Suryo Suryantoro, M.Sc.

“We are integrating the sustainable development concept into our activities.”

Letter from the Board of Commissioners

www.antam.com

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Dear stakeholder,

The Indonesian archipelago is well known for its vast and rich mineral resources with its location at the Pacific

Ring of Fire. Antam’s mineral deposit is spread throughout Indonesia, beginning from bauxite deposit at Riau

and West Kalimantan, gold at West Java, and nickel ore deposit at Southeast Sulawesi and North Maluku. The

deposit of nickel, our main commodity, is largely located at the eastern part of Indonesia which covers 68% of

the archipelago. The mineral potential at the eastern part of Indonesia is huge as it contains 81% of Indonesia’s

mineral deposit.

Antam seeks to find new deposits to sustain its business. Discovering new deposits is difficult. As such, Antam

seeks to best develop its human capital, especially in the field of mining.

The vast, high quality reserves and excellent competencies of human resources are keys to sustainable operation.

We realize mine closure is part of a natural stage of a mine. We closed several mines such as Gebe, Cikotok and

Cilacap. That said, several other mines are planned to be closed in the coming years.

Sustainable economic, environmental and social development are not merely words. We are integrating the

sustainable development concept into our activities.

The Board of Commissioners oversees and advises the Board of Directors in performing its managerial duties to

increase the shareholders and stakeholders’ value.

We realize it is still a long way toward our 2010 Vision. The commitment and the spirit from the Board of

Commissioners, 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.

Our third sustainability report is also a reflection of the implementation of good corporate governance (GCG) by

presenting transparent and clear information.

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.

We are hopeful this report can be useful as part of our communication and transparency to our stakeholders.

Ir. Supriatna Suhala, M.Sc.Commissioner

Prof. Dr. Ir. Irwandy Arif, M.Sc.Independent Commissioner

Ir. Wisnu Askari MarantikaPresident Commissioner

Ir. Suryo Suryantoro, M.Sc.Commissioner

6



From left to right: Ir. Syahrir Ika, MM.,

Ir. Darma Ambiar, MM., Ir. Dedi Aditya Sumanagara,

Kurniadi Atmosasmito, SE., MM., Ir. Alwin Syah Loebis, MM.

“We realize our activities, from exploration,

production and post mining, may have an

impact to the environment and social aspects

of the community.”

Letter from the Board of Directors

www.antam.com

7



Dear stakeholder,

I am pleased to present our third sustainability report to you. This report highlights our performance as well as our

challenges we faced in the year 2007.

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.

Antam aims to integrate the concept of sustainability development at its operations. We aim to benefit the

community surrounding its mines.

We realize our activities, from exploration, production and post mining, may have an impact to the environment

and social aspects of the community.

The Commissioner-level Environment and Post Mining committee is responsible for ensuring a proper environmental

and social management. At the operational level, Antam forms an Environmental and Post Mining Department

which is headed by a Senior Manager. Environmental protection and post mining initiatives are part of Antam’s

responsibility with respect to proper environmental and social management.

Antam is also committed to the good implementation of work safety and health, for employees and contractors.

Antam will focus more on the development of the physical, socio-economic, cultural, community and regional

aspects in the coming years. We aim to obtain Green PROPER at all of our mines by 2010. We believe our

foundation is stronger to face future challenges. We aim to create a brighter future with our stakeholders.

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.

Ir. Darma Ambiar, MM.Director of Development

Ir. Alwin Syah Loebis, MM.Director Operations

Ir. Dedi Aditya SumanagaraPresident Director

Ir. Syahrir Ika, MM.Director of HR and General Affairs

Kurniadi Atmosasmito, SE., MM.Director of Finance

8



Corporate Profile:Introducing AntamAntam in Brief9

Antam in Figures 2007 12

Certification and External Recognition13

Operational and Development Area14

www.antam.com

9



Antam is an export oriented, diversified and vertically integrated Indonesian mining company. Our

mining operation is spread throughout the mineral rich Indonesia. Our activities include exploration,

mining, processing and marketing.

Antam was established as a state owned company in 1968 through a merger of several single

commodity national mining companies. In 1997, Antam listed 35% of its shares at the Indonesia

Stock Exchange (formed after a merger of between the Jakarta and Surabaya Stock Exchange).

The public listing was part of a financing exercise the fund the FeNi III ferronickel expansion project.

In 1999, 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.

Operational and Development Area

Antam’s head office is located in Jakarta. The nickel operations are located in Southeast Sulawesi

and North Maluku. Antam’s Pongkor gold mine is located in West Java, while its precious metal

refinery unit is located in Jakarta. Antam owns and operates a bauxite mine in Bintan. The iron

sands operation is run by Antam’s subsidiary, PT Antam Resourcindo. Antam has a vast bauxite

and nickel deposits in West Kalimantan and North Maluku, respectively.

Antam’s main commodities are nickel ore, ferronickel, gold, silver, bauxite, and iron sands. Antam

also provide precious metal processing services. Antam hopes to offer exploration services in the

future through its exploration unit, Geomin.

In 2007, Antam owned three subsidiaries. PT Antam Resourcindo operates iron sands mine in

Kutoarjo, Central Java, and a gold mine in Cikotok, West Java. Antam formed Antam Finance

Ltd (Mauritius) and Antam Europe BV (Netherlands) to help issue bonds to finance the FeNi III

expansion project in 2003. As Antam refinanced the bonds in December 2006, Antam Finance

Ltd (Mauritius) and Antam Europe BV (Netherlands) were in the process of liquidation. In

September 2007, Antam made an investment in 60% PT Borneo Edo International which owns

a bauxite mining license at West Kalimantan. In January 2008, Antam increased its investment

from 4% to 80% ownership at PT Mega Citra Utama (MCU) which owns a bauxite mining

license at West Kalimantan.

In 2007, Antam had four main activities, nickel mining, gold mining and processing, bauxite mining

and exploration unit. Antam operates four nickel mines, one gold mine, and one bauxite mine.

Antam owns one precious metals processing and refining facility and one exploration unit. Most

of company’s income was generated from nickel and gold, both contributing 99% of Antam’s

revenue in 2007.

Nickel mining operation.

Antam in Brief

10



Achievement

The year 2007 was a record breaking year in terms of total return to shareholder. Antam’s share

price rose 176% to Rp4,475 at the end of the year. Antam’s market capitalization amounted to

Rp42.7 trillion (US$4.5 billion) at the end of 2007. In 2007, Antam’s share price rose as high as

Rp5,050. Antam also gives return in the forms of dividend. Since its listing at the Indonesia Stock

Exchange in 1997, Antam consistently distributes dividend to its shareholders. In 2007, Antam

paid a cash dividend of Rp621 billion, or 40% dividend payout from the company’s net income as

of 31 December 2006. The amount is equal to Rp65.12 per share (or Rp325.58 per share prior to

a 5:1 stock split in July 2007).

Antam’s sales increased 113% to Rp12,008 billion, and with a moderate increase of operating

costs, net margin increased 230% to Rp5,132 billion (US$562 million). Antam’s Earning per Share

(EPS) rose 230% to Rp538.08 from Rp162.79 in 2006. 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.

Despite an increase of Antam’s total equity due to a 105% rise in free cash flow to Rp8,764 billion,

and without adding new debt, Antam was able to increase its return on equity to 79%, a significant

jump compared to 36% in 2006. In 2007, Antam reduced its debt to equity ratio to 10%.

Antam’s profit margins rose significantly in 2007. In 2007, Antam’s gross margin amounted to 60%,

while operating and net margin rose to 57% and 43%, respectively.

Value Creation

In 2006, Antam’s net profit amounted to Rp1,553 billion with EPS of Rp 162.79. In 2007, Antam net

profit amounted to Rp5,132 billion, a 230% increase with EPS of Rp538,08. Antam’s net margin

rose significantly to 43%, largely due to increased prices of nickel and gold as well as a rise in

nickel ore and ferronickel sales.

Underground gold mining at Pongkor.

www.antam.com

11



Strength

Antam is located in Indonesia, a mineral rich country. The average returns and margins of Indonesian

mining companies are higher than the average of its international mining peers. Antam aims to

create and increase its value through the development of its vast reserves and resources.

As an Indonesian mining company, Antam may benefit from the richness of Indonesia’s mineral

deposit. As well, as a state owned company, Antam may benefit from government policy which

may prioritise state owned companies in developing Indonesia’s mineral deposit.

Antam has the commitment to implement good corporate governance practices. Antam aims

to create value to its shareholders. Antam aims to treat its shareholders, both majority and

minority, equally.

Antam has a solid track record of operating history. Antam has nearly four decades of experience

in exploration, processing, refining and marketing of mineral products. Antam’s exploration unit,

Geomin, has experiences to successfully find profitable deposits. Antam also has a positive track

record in operating modern processing and refining plants.

Antam has diversified, long term and loyal customers. Antam does not rely its market into a single

region or country.

Inline with a strong balance sheet, healthy cash position and prudent financial management,

Antam is poised for growth.

Antam Power Plant lll at Pomalaa.

12



Antam in Figures 2007

Sales contribution from gold operation 9%

Sales contribution from ferronickel sales 48%

Sales contribution from nickel ore sales 41%

Revenue from nickel segment Rp10,687 billion

Revenue from gold segment Rp1,163 billion

Percentage of sales increase 113%

Operating Cashflow Rp6,182 billion

Retained Earnings Rp7,785 billion

Ownership of the Government of Indonesia 65%

Non Tax Contribution to the State Rp689.4 billion

Number of Employees 2,716

Investment for Environmental Management Rp42.6 billion

Operational Area 4,998 hectares

Reclamation Area 3,876 hectares

Partnerships Program Expense Rp10.3 billion

Recipient of the Partnership Program 2,312

www.antam.com

13



Best 2006 Environmental Reporting at the 2007 Indonesia Sustainability Reporting Award (ISRA).

Annual Report Award 2006 • Ranked 1st Overall • Ranked 1st SOE Non Finance Category

League of American Communication Professionals (LACP) 2006Vision Awards Annual Report Competition • Platinum Winner (Materials Category) • Gold Winner (Best In-House Report Category) • Ranked 11th from over 2,500 international entries

Ranked 1st in the Mining and Energy category - 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, Beijing.

Ranked 1st at the Trusted Company category at the Corporate Governance Perception Index 2006.

Bronze Medal for the North Maluku Nickel Operation at the 2007 Reclamation Award from the Department of Energy and Natural Resources.

Certification and External Recognition

14



HEAD OFFICE

SalesAssets

Employees

Rp5,618 billion-

282

GOLD AND REFINING

Sales Assets

Employees

Rp707 billionRp1,163 billion

740

BAUXITE AND IRON SANDS

SalesAssets

Employees

Rp212 billionRp158 billion

175

NICKEL AND REFINING

Assets SalesEmployees

Rp5,501 billionRp10,687 billion

1,504

I N D O N E S I A

2 37

6

4

5

8

10

11

5

313

12

9

14

15

4

57

8

21

6

Type Location

Bauxite Mine Kijang

Gold Factory Cikotok

Gold Mine Cikidang

Irons Sands Mine Kutoarjo

Irons Sands Mine Lumajang

Precious Metal Refinery Jakarta

Gold Mine and Factory Pongkor

Nickel Mine and Smelters Pomalaa

Nickel Mines Tanjung Buli, Mornopo, Gee

Antam’s ProjectsOperations (100% Antam)

1

2

3

4

5

6

7

8

9

1

2

3

9

10

11

12

13

14

15

Head Office and Geology Unit

Gold

Nickel

Iron Sands

Bauxite

*currently operational

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%

Certain Minority Stake Joint Venture Projects

PT Nusa Halmahera Minerals* Antam 17.5%

PT Cibaliung Sumberdaya Antam 10.25%

PT Sorikmas Mining Antam 25%

PT Gag Nickel Antam 10%

PT Weda Bay Nickel Antam 10%

PT Dairi Prima Mineral Antam 20%

PT Galuh Cempaka* Antam 20%

4 Tsingshan Nickel and Stainless Project Antam 60%

5 PT Borneo Edo International Antam 60%

PT Mega Citra Utama Antam 80%

1

6

7 SGA Mempawah Antam 55%8 Sponge Iron with Krakatau Steel Antam 34%

9

Operational and Development Area

www.antam.com

15



HEAD OFFICE

SalesAssets

Employees

Rp5,618 billion-

282

GOLD AND REFINING

Sales Assets

Employees

Rp707 billionRp1,163 billion

740

BAUXITE AND IRON SANDS

SalesAssets

Employees

Rp212 billionRp158 billion

175

NICKEL AND REFINING

Assets SalesEmployees

Rp5,501 billionRp10,687 billion

1,504

I N D O N E S I A

2 37

6

4

5

8

10

11

5

313

12

9

14

15

4

57

8

21

6

Type Location

Bauxite Mine Kijang

Gold Factory Cikotok

Gold Mine Cikidang

Irons Sands Mine Kutoarjo

Irons Sands Mine Lumajang

Precious Metal Refinery Jakarta

Gold Mine and Factory Pongkor

Nickel Mine and Smelters Pomalaa

Nickel Mines Tanjung Buli, Mornopo, Gee

Antam’s ProjectsOperations (100% Antam)

1

2

3

4

5

6

7

8

9

1

2

3

9

10

11

12

13

14

15

Head Office and Geology Unit

Gold

Nickel

Iron Sands

Bauxite

*currently operational

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%

Certain Minority Stake Joint Venture Projects

PT Nusa Halmahera Minerals* Antam 17.5%

PT Cibaliung Sumberdaya Antam 10.25%

PT Sorikmas Mining Antam 25%

PT Gag Nickel Antam 10%

PT Weda Bay Nickel Antam 10%

PT Dairi Prima Mineral Antam 20%

PT Galuh Cempaka* Antam 20%

4 Tsingshan Nickel and Stainless Project Antam 60%

5 PT Borneo Edo International Antam 60%

PT Mega Citra Utama Antam 80%

1

6

7 SGA Mempawah Antam 55%8 Sponge Iron with Krakatau Steel Antam 34%

9

16



Corporate Policy, Corporate Governance, and Management SystemImproving the corporate governance and management system17

Implementing International Standard Management System22

Stakeholder Engagement23

www.antam.com

17



Corporate governance is an evolving concept. Antam believes a consistent and continued

implementation of good corporate governance will help ensuring a sustainable growth. Antam

believes corporate management should be based on the principles of transparency, accountability,

responsibility, independency, fairness and equality.

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. Since then, Antam

has improved its corporate governance practices in view of increasing the shareholders and

stakeholders value. Other state owned companies frequently conduct visits to Antam for corporate

governance study. In the long term, Antam believes the GCG implementation may help increase

the investors’ trust and improve the investment condition in Indonesia as a whole.

Laying a solid foundation to managing and supervising the company

The Corporation Law No. 40/2007 states a corporation governing body consists of the Shareholders

Meeting, the Board of Commissioners, and the Board of Directors. 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.

Antam formulates a Corporate Policy Manual to clearly divide the roles and responsibilities of

the Board of Commissioners and the Board of Directors. The Corporate Policy Manual is one of

the three major GCG documents. Two other major documents are the Management Policy and

the Standard Operating Procedure. The Corporate Policy Manual consist of corporate guidelines

which must be adhered by Antam’s employees.

The chapters at the Corporate Policy Manual are:

• 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, Antam improved its GCG practices with the finalization of the revised Corporate Policy

Manual, completion of performance assessment of the members of the Board of Directors and

members of the Commissioner-level Committees, risk management, corporate sustainability

report, and corporate policies. Antam also established a division to handle GCG implementation

which is headed by an Assistant Senior Manager. In 2007 Antam showed an improvement in

corporate governance practice compared to last year.

Corporate Policy, Corporate Governance, and Management System

Gold ore processing at Pongkor.

Improving the Corporate Governance and Management System

18



Strategic Planning

The Board of Commissioners and the Board of Directors are responsible in setting the strategic

direction of the company. 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.

Antam believes strategic planning will better help guide the direction of the company in achieving

its vision. Antam communicates its strategic direction and planning regularly. As well, Antam

regularly reviews its strategic direction to keep the company on track in realizing its vision.

Supervision and Control

Antam conducts supervision and control through internal audit. The internal audit is responsible for

the efficient implementation of internal control, risk management and good corporate governance.

Internal audit practice is based on the Internal Audit Charter, Internal Audit Standard Profession

and Code of Conduct from The Institute of Internal Auditor. Antam utilizes risk based audit at its

business process to align with risk management.

Risk Management

Antam believes risk management is key in decision making process. Antam implements risk

management through context application, risk identification, risk analysis, risk evaluation, handling

policy, supervision and communication process.

Antam has a special department in risk management. The risk management department is

responsible in providing constant assessment of risk in decision making process. Antam proactively

implement risk management in its decision making process.

Operation

Antam faces operational challenges in the form of finding economical and profitable reserves.

Antam also faces operational challenges in the form of equipment, materials, environment and

work and health safety aspects. Antam operates in accordance with the existing law as well as

internal guideline. Antam operates with a view of creating a sustainable sustainable profit and

growth. Antam requires its contractors to follow the internal operation guideline.

Underground gold mine at Pongkor.

www.antam.com

19



Antam’s operational policy includes:

• Exploration activity which incorporate community interests and comprehensive information.

• Bankable Feasibility Study which will allow a proper risk analysis.

• Production aspect that is consistent with Antam’s long term plan.

• Proactive marketing.

• Environmental preservation, mine closure and post mining are integrated parts of Antam’s

mining operation. The mining operation must be based on a proper environmental management

and compliance to the existing standard.

• Implementation of a healthy and safe working environment which adheres to the existing

regulation and related requirements.

• Outsourcing based on a mutual benefit relationship.

Human Resource

Antam ensures its human resource asset is a key factor in achieving the company’s goal. The

human resource management is founded on a meritocracy system based on skill and performance.

Antam’s human resource management system is free from any discrimination including ethnic

group, religion, race and political interests. Antam’s human resource management incorporate all

issues related to human resource such as human resource planning, work termination, employees’

benefit and medical needs.

Corporate Social Responsibility

Antam embeds the corporate social responsibility in its corporate values, code of conduct and

national and international regulations. Antam conducts CSR practices through stakeholders’

identification, implementation, communication and adherence to the existing regulation.

Code of Conduct

Every Antam employee must sign the corporate code of conduct. The code of conduct serves as

a business practice guideline.

Antam socializes its code of conduct through coaching and mentoring. Antam forms a helpline

to answer any queries related to code of conduct. Antam’s employees may report any issues

related to the code of conduct to the helpline. Antam treats all information made to the helpline

with utmost confidentiality.

Antam’s employees may talk or report to their superior officer or directly through the Senior

Vice President Corporate Secretary, Senior Manager Legal and Compliance or Senior Manager

Human Resources Management. Employees may also talk with the Board of Directors for more

important issues.

Induction program for Antam’s new employees.

20



Antam will form an Employee Convention Team should there be any violation. Members of the

team come from the head office or business units. Antam selects members of the team based on

their competency and knowledge.

Antam has an internal audit division which is responsible for internal supervision and control, risk

management as well as good corporate governance implementation. Internal Audit may examine

employees’ complaints in relation to accounting, internal control, fraud as well as employees

and management behavior. The internal audit may also investigate wrongful conducts such as

dishonesty, unethical conduct, conflict of interest, improper leadership, inaccurate information to

the public, as well as violation of existing regulation. Despite a number of reports since the code

of conduct is launched, none have been proven.

Keeping the Shareholder’s Trust

External parties have recognized Antam’s GCG implementation. Antam ranked first in the category

of Trusted Company with a score of 82.07 at the Corporate Governance Perception Index 2006.

The event was held by an independent institution, Indonesian Institute for Corporate Governance.

The survey covered 15 public companies and 8 state owned companies.

The study also showed a 0.407 positive correlation between the GCG practice and return on

equity. The positive correlation indicated any GCG improvement was also likely to increase the

stakeholders’ benefit.

www.antam.com

21



Code of ConductAntam’s management formulates the company’s code of conduct in accordance

with the existing law and regulation. As well, the code of conduct also adheres to the

society’s norm.

The Board of Commissioners supervises the implementation of the code of conduct

at the Board of Commissioners and Board of Directors level. Antam’s Director of

GA and Human Resource supervises the implementation of code of conduct at

employees’ level.

THE PRINCIPLES OF CODE OF CONDUCT

1. Equality and Respect to Human Rights.

2. Healthy and Safe Working Environment.

3. Fair working opportunities.

4. Conflict of Interest.

5. Unwarranted payment.

6. Gifts and Entertainment.

7. Relationship with the Government.

8. Relationship with Supplier.

9. International Trade.

10. Confidential Information.

11. Supervision and Utilization of Assets.

12. Intellectual Property Rights.

Corporate Secretary

• Learning and Assessment • HR Management

GCG Committee

Nomination, Remuneration & Human Resources Development

Committee

Board ofCommissioners

Audit Committee

Environment & Post Mining

Committee

Risk Management Committee

Business Units Internal Auditor External Auditor

Board ofDirectors

Risk Management

Environmentand

Post Mining

General Meeting of Shareholders

Coordination

Formal line of command

22



Antam’s business units keep proper management system documentation to ensure smooth

operational process and continuous improvement.

Antam aims to manage its business units in accordance with the international standard. 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.

• Pomalaa Nickel Mining Business Unit meets the requirements of Quality Management

System ISO 9001 and Environmental Management System ISO 14001.

• Precious Metal Processing and Refinery Business Unit meets the requirements of Quality

Management System ISO 9001, Environmental Management System ISO 14001 and Quality

Laboratory Management System ISO 17025.

• Geomin Unit meets the requirements of Quality Management System ISO 9001.

Antam strives to improve its business processes. In 2002 Antam established Quality Management

division to facilitate improvement process by providing support for improvement process at the

head office and business units. Examples of business process improvement include:

• The implementation and integration of Balanced Score Card into the Performance

Management System.

• The implementation of Malcolm Baldrige Criteria for Performance Excellence.

In 2007, Antam received Gold medal at the International Convention on Quality Control Circle

(ICQCC) in Beijing. In 2006, Antam also received similar award at the same event held in Bali.

Implementing International Standard Management System

www.antam.com

23



Antam understands the importance of communication with its stakeholders. Antam engages its stakeholders in strategic

planning process, as well as implementation and evaluation of company’s initiatives. Antam utilizes a number of tools to

ensure effective communication with its stakeholders.

Stakeholder Engagement

Operational Meetings

Consultative meetings between Antam and its business partners.

Shareholders general meeting

Annual meeting to discuss company performance and strategic policy.

Annual Report and Press Release

Reports that communicate the company’s performance to public and media.

Bipartite Forum:Management and Labor Union

Meetings to discuss industrial relation and employee related matters.

Mining Operation Meetings

Meetings that discuss environmental impact and mine operation.

Tripartite Forum:Management, Labor Union and Government

Meetings to discuss industrial relation problem that cannot be settled in bipartit forum.

Meetings with Buyers

Meetings to obtain customer’s expectations, requirements, feedbacks and complaints on Antam’s products and services.

Development Planning Meetingwith Local Stakeholders

Meetings to discuss local development planning.

Community Development and Relation

Managing the interests of the local surrounding communities.

Partnership and Environmental Development Program (PEDP)

Program to develop local economy and infrastructure.

Local Community

LocalGovernment

PEDP

BusinessPartner Employee

Buyer

Mining Authority

Antam

Shareholders

24



Sustainability PerformanceFinancial Performance25

Environmental Performance29

Social Empowerment46

Implementing Human Rights Through Commitment and Education 53

Building Sustainability Together with Community54

Responsibilities towards Product Impact60

www.antam.com

25



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.

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

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

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.

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.

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

SALES AND PROFITS(In billion Rupiah)

Sales

Net Profit

Operating Profit

04

2,85

9.5

810.

3

1,09

6.6

05 06 07

3,25

1.2

841.

9

1,09

9.8

5,62

9.4

1,55

2.82,40

3.7

12,0

08.2

5,13

2.16,

796.

1

Financial Performance

26



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

commodity producer, with the exception of ferronickel.

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

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

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

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

ferronickel cash cost. Antam currently studies the best energy alternative and hopes a decision to

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

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

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

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.

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.

LABOR EXPENSES(In billion Rupiah)

04 05 06 07

99

244

68 5

346Pension and other liabilities

Medical Expenses

Salaries

91 8 1

22

62 7

80 1

222

12 2

6 1

OPERATING CASH FLOW(In billion Rupiah)

04 05 06 07

,711

1

538,4

247

967

www.antam.com

27



Sharing Prosperity through Supporting Local Economy

As the biggest Indonesian state owned mining company, Antam participates in the efforts to

improve the welfare of the surrounding community.

Antam is committed in empowering the surrounding communities around its mines. Antam utilizes

local resources and gives recruitment priority to local community. Antam also helps to provide

infrastructure in the surrounding community.

Antam aims to provide sufficient employees’ welfare. Antam also utilizes post mining programs

and supporting the surrounding community through the Community Development Program, the

Partnership Program and the Environmental Development Program.

Antam shares its empathy through sharing with others. *Including tax, royalty and other non tax contribution.

CONTRIBUTION TO THE GOVERNMENT*(In billion Rupiah)

07

2,57

1

06

928

05

806

04

390

FUNDS DISTRIBUTED THROUGH THE ENVIRONMENTAL DEVELOPMENT PROGRAM(In billion Rupiah)

Natural Disaster Aid

Infrastructure Development

House of Worship

Education and Training Aid

Medical Aid

05 06 07

.44

.81

3.8

FUNDS DISTRIBUTEDTHROUGH THE PARTNERSHIPPROGRAM(In billion Rupiah)

07050.

31

06

.94.

.90.951.

0

1.4

2.3

1.7

1.2 1.

41.4

0.02

0.05 0.15

0.7

0.4

FUNDS DISTRIBUTED THROUGH THE ENVIRONMENTAL DEVELOPMENT PROGRAM(In billion Rupiah)

Natural Disaster Aid

Infrastructure Development

House of Worship

Education and Training Aid

Medical Aid

05 06 07

.44

.81

3.8

FUNDS DISTRIBUTEDTHROUGH THE PARTNERSHIPPROGRAM(In billion Rupiah)

0705

0.3

1

06

.94.

.90.951.

0

1.4

2.3

1.7

1.2 1.

41.4

0.02

0.05 0.15

0.7

0.4

• 2005: Funds were distributed to industrial, trade and services sectors.

• 2006: Funds were distributed to industrial, trade, animal husbandry, fishery and services sectors.

• 2007: Funds were distributed to industrial, trade, animal husbandry, fishery and services sectors.

28



Head of Social and Economy Sectors of the Regional Planning Agency Bogor Regency

Ir. Nano Supriatna, MM

The local government of Bogor Regency has recognized

positive influence from Antam’s presence in the

neighborhood. Since 1999, 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 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. For example, if Antam is building road

facilities and bridge for the people of Nanggung village, then there will be positive as

well as negative multiplier effects to social, economy and environment such as easier

transportation to send agricultural, plantation crops, fishes to the market and easier

access to education and health facilities. The facilities however also contribute to the

pollution caused by the traffic.

In environmental aspect, Antam has conducted many efforts to reduce the environmental

impacts caused by its activities.

However, we expect for better coordination between Antam and local government in

social, economy and environmental activities, which will be discussed in Development

Planning Conference. This is important to avoid any overlapping in planned activities

stated in local government budget.

Local government and Antam will formulate 5 years activities planning. This is

according to Antam’s Community Development preparation to develop master plan

for anticipating post-mining period. It is expected to reduce the risk of community

dependency on Antam, therefore, the mining closure may have minimal impacts

because Antam and local government already arrange necessary preparations to

achieve independent society.

www.antam.com

29



Preserving the Environment, Maintaining Sustainability

Strong commitment to preserve the environment, foster relentless care beyond mining

operations

Antam understands that mining activities can pose potential damage to the environment and

the society. However, Antam believes it is possible in mining business to preserve balance with

nature and environment.

With strong adherence and commitment from all of Antam’s employees to restore land function

during mining operation and post mining activities, sustainable environment may be realized.

As codified in chapter 33 verse 3 of the 1945 Indonesia Constitution, “The earth, water and the

natural resources are owned by the state and vastly used for the prosperity of the people”, Antam

conducts mining activities to be used for the prosperity of the people without jeopardizing harmony,

conformity, balance, equal justice and sustainability for now and future.

Policy and Code of Conduct

Antam’s approach to environmental management is stated in occupational health and safety

(K3) policy. Antam prioritizes K3, care for environment preservation and participate in community

development in the context of sustainability development when conducting operations.

The Environment policy emphasizes the following:

• Make every effort to use system, methodology, equipments and materials with lowest negative

impacts to environment on every mining activity.

• Oblige to maximize the use of natural resources in the context of conservation and

lowering waste.

• Oblige to execute and comply with environmental policy (Environmental Impact Analysis,

AMDAL) in operation activities.

• Oblige to minimize land disturbance and conduct rehabilitation program to restore land

function, including the protection of flora and fauna within the lands.

• Oblige to have emergency response procedures for potential activities that may cause

environmental accidents.

• Have mine closure and post mining plan in every mining activity.

• Obliged to audit, evaluate and improve environment management on regular basis to improve

environmental performance.

All Antam’s units/divisions when conducting work are bound in code of conduct. Environmental

code of conduct stated that beyond comply to the regulation, Antam shall attempt to reduce

waste, emission and the use of Hazardous and Poisonous Materials (B3); to eliminate risks caused

by operational activities or products; to minimize pollution environment problems effectively and

efficiently; to deliver compulsory training on company’s regulation, law and policy on K3; to ensure

all mining and related employees understand and act upon environmental and K3 procedures.

Environmental Performance

30



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. The structure reflects Antam’s

concern and main priority of management for environment and post mining aspect.

It is expected with this new structure that environmental policy will get more support in its

implementation, in line with global demand to be more conscious on environmental aspect.

Furthermore, 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.

Environmental Cost

Antam’s commitment in environmental sector also demonstrated in the increase of environmental

cost every year. The realization of environmental cost in 2007 compared to 2006 increased 6% to

Rp43 billion. In 2008, Antam budgeted Rp57 billion.

To support the implementation of several environmental programs in 2007, total employees

assigned at environmental division reached the highest amount ever of 13 employees. Antam

expects to increase the number of employees in 2008 by 5 more employees (two from bachelor

degree level and three from diploma certification).

ENVIRONMENTAL MANAGEMENT EXPENSE(In billion Rupiah)

ENVIRONMENTAL MANAGEMENTAND RECLAMATION LIABILITIES(In billion Rupiah)

07

107

06

89

05

77

04

82

Pengeluaran Lingkungan(Rp Milyar)

0

10

20

30

40

50

04 05 06 07

23 22

4043

Grafik Pengeluaran Kapital dan Operasional Lingkungan 2004 - 2008

www.antam.com

31



Environmental Management System

In the effort to manage environment inline with international standards, Antam follows the

environment management standard system developed by the International Organization

for Standardization (ISO) covered in ISO 14000 series. The ISO 14001 standard requires the

environmental management system to cover the commitment and policy, planning, implementation

and operation, audit and follow up action as well as management study. Antam’s main operational

areas has received ISO 14001 certification and conduct regular inspections and internal and

external environmental audit every 6 months, in accordance to ISO 14001 requirements.

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.

Managing Resources Responsibly

Below is discussion of Antam’s performance in resources utilization, including soil, energy, water

and material.

Land

For Antam, the responsibility of using the land means to understand functional purposes prior

to exploitation as well as the potential use, the ecological and social value and community

development expectation while the lands are under the company’s operations.

Just as shown in chart, the percentage of lands needs to be rehabilitated has trended down in the

last three years. Total areas that need rehabilitation, including open pit mining, infrastructure and

active operational areas can only be rehabilitated after mine closure. The reduction was due to

several mining locations in post mining program and also Antam rehabilitates the areas once the

reserves are exhausted, not until cease of operations.

In 2007, Antam planned to rehabilitate 231.8 ha of lands in all operational areas, however Antam

has realized 228.05 ha or above 98% of the target. Until the end of 2007, the total land opening

was about 4,997.7 ha and total land rehabilitated was 3,875.9 ha.

The ratio between lands require rehabilitating and total land opening showed downtrend. In 2005,

the ratio was 29% and in 2007, the ratio decreased to 22%.Total land use until 2007 was 4,997.7 hectares.

Non-rehabilitated land

Rehabilitated land

22%

78%

REHABILITATED LAND TO TOTALLAND USE RATIO UNTIL 2007

32



Energy

Research and Development

Studying energy use and identifying the energy saving opportunities are first step in energy

conservation and cost saving. In 2006 and 2007, Antam’s gold business unit Pongkor participated

in Energy Audit Program conducted by Energy and Mineral Resources Department (ESDM).

The program facilitates ESDM to provide an incentive to the industry in form of energy audit as

well as energy conservation identification and recommendation. On the other hand, the industry

obliges to examine and conduct study follow up, so it is expected to achieve significant energy

saving not only from cost of financial aspect, but also from the environmental aspect.

In 2008, Antam’s nickel business unit Pomalaa will conduct energy audit and hopefully with the

recommendation, energy intensive ferronickel process may be more efficient, thus, it contributes

advantage to the environment as well as enhancing the Antam’s products competitiveness.

The Search for New Energy Resources

To anticipate of power requirement in the future and considering current operations and business

expansion plan, Antam is trying to find new energy resources. For short-term (4-5 years) requirement,

Antam has identified several energy resources and currently in various implementation phases.

The exploration for new energy resources attempts to apply renewable energy components.

From the three new power resources that are in exploration phase, the agreement with PT Tamboli

Energy has reached the next phase. In September 2007, 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 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.

This hydroelectric plant will be built in the Tamboli River, The regency of Kolaka (about 63 km from

Pomalaa) using run-of-river method. There will be no man-made dam, therefore sustaining the

environment preservation.

www.antam.com

33



SOURCE OF ALTERNATIVE ENERGY

Source Capacity Source of Energy

Used at Progress

PT Tamboli Energy 15 MW Hydro Pomalaa Construction.

PLTU 150 MW Coal Pomalaa

Feasibility Study. Expected completion in 2008.

Study on IPP (Independent Power Producer) scheme. Expected completion in 2008.

PT Poso Energy 90 MW Hydro Pomalaa Feasibility Study

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).

The energy audit result in 2006 showed that there was potential energy saving about 7100GJ per

annum (with the no-cost, low-cost and high-cost initiatives). However, as audit report delivered in

November 2007, the possibility of having the energy saving initiative may be started in 2008.

ENERGY CONSUMPTION AT PONGKOR

Source of Energy Consumption 2007 Consumption 2007 (GJ)

National Grid 45,061,760 kWh 162,222.30

Diesel Oil 316,356 liters 11,532.78

Thermal Oil 268,135 liters -

Electricity Generator (back up) 48,221 kWh -

Diesel Oil

National Grid

SOURCE OF ENERGY AT PONGKOR

7%

93%

34



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. As mentioned in 2006 sustainability report, the improvement of

efficiency in power consumption will be focused on reduction of greenhouse effect emission.

The ferronickel plants currently require about 88 MW power and supplied by Antam’s diesel

power plant, with capacity of 102 MW (as the main power source) and 58 MW (as back up

power source).

One of current power saving efforts is utilizing sludge oil to rotary kiln as additional fuel.

ENERGY CONSUMPTION AT POMALAA

Source of Energy Used at Consumption 2007 Consumption 2007 (GJ)

Marine Fuel Oil (MFO)

Power Plant 143,033,804 liters 5,441,117

Industrial Diesel Oil (IDO)

Ferronickel Plant 20,190,216 liters 768,051

Coal Ferronickel Plant 109,049,257 kg 2,835,281

Water

Water is important in mining and metal processing. However, it is also required by the surrounding

community at operational areas and environment to support the ecosystem. Pomalaa and Pongkor

have been re-circulating the water into the system, hence reducing the amount of water taken from

the environment.


Currently gold mining activities as well as gold ore processing activities no longer use the

water directly from nature. Water required for mining and processing activities is taken from

water re-circulation. The water saving program has been done since 1998. The only domestic

water needed was taken from the nature through well and dug well, with total water extraction

2,151.5 m3 in 2007.

SOURCE OF ENERGY AT POMALAA

MFO

Coal

IDO

31%

60%

9%

Description Source Amount (M3) Recirculation Amount (M3) Percentage of recycled water (%)

Mine recycled water Water from waste treatment plant 5,180,191 • Back Filling • Drilling water into the mine

243,0124,507,959

4.6987.02

Plant recycled water Waste water to tailing dam 898,875 • Tailing Dam to the plant 469,655 52.25

Total recycled water • Waste water from the mine• Waste water from the plant to the

tailing dam

6,654,643 • Waste water and water from the tailing dam into the plant

5,649,846 84.90

WATER RECIRCULATION AT PONGkOR

www.antam.com

35



Although Antam is using water recirculation for mining and processing, in 2007 approximately

3,729,346 m3 water volume was disposed to Cikaniki River (with authorization of local government),

through mining and processing outlets. 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, as well as the ground water that seeps

from the mine during mining process.

• Processing Plant outlet: stream of rainwater captured in tailing dam and decant pond.

The above water volume was considered acceptable due to Pongkor’s rainfall could reach

6,000 mm per year.

In 2007, total water saved approximately 6,800,874 m3 (not included rainwater and ground water

from mine site, which volume is assumed equal to volume streamed to the Cikaniki River).

WATER TAkEN FROM THE ENVIRONMENT

Description Source Installed Capacity Usage Total Consumption (thousand M3/

year)

Inlet 1 Drilling well 75 m3/day Domestic 1.658

Inlet 2 Digging well 10 m3/day Domestic 0.493

TOTAL 2.151

TREATED WASTE WATER DISPOSAL

Description Disposal Destination Water Category Total Disposal (thousand M3/year)

Mine Treatment Plant Cikaniki River B, C, D 1.953

Cikaret Treatment Plant Cikaniki River B, C, D 1.776

TOTAL 3.729

* Water category is based on the Decree No. 38/1991 from the Governor of West Java on Water Category and Water Quality Standard.


In 2007, the water volume extracted approximately 7,249,271 m3. Water used at plants is being

re-circulated in order to reduce the use of natural water. The water recirculation discharge 940 m3

per hour while plant disposed water discharge 635 m3 per hour.

Currently Antam have built two re-circulation ponds for clean water and dirty water from plants.

The clean water pond is to hold the water overflow from the plant’s cooling system. While the dirty

water pond is to hold the waste from slag cooling process. Currently Antam plans to re-circulate

water used by ferronickel plants, including the construction of liquid waste flow treat diagram.

36



Furthermore, there are four environment disposal outlets (check dams) to hold rainwater from mine

surface. The four dams were constructed as rainwater sediment control facility. The discharge

amount from several dams depends on the rainfall.

WATER TAkEN FROM THE ENVIRONMENT

Description Source Usage Total Water Taken(million M3/year)

Inlet Kumoro River Domestic 5.935Inlet Huko-huko River Production 1.314

T O TA L 7.249

TREATED WASTE WATER DISPOSAL

Description Disposal Destination Total Disposal(million M3/year)

Plant Outlet Sea 5.563

Material

Material is the biggest cash cost component in mining and processing activities. Furthermore, the

efficiency of using materials means reducing need for resources. In its activities, Antam attempts

to conserve materials through recycling efforts.


MATERIALS IN GOLD MINING AND PROCESSING

Material UsageTotal

(thousand tons)

Gold Ore Raw material 389.88

Sodium metabisulphide Cyanide destruction 1.09

NaCN Gold binding 0.53

HCl Carbon leaching 0.44

Lime Maintain/increase pH level 0.33

NaOH Maintain pH level 0.19

H2O2 Cyanide destruction 0.11

Others - 0.53

Most of processed materials are still contained within the disposed water, hence the recycle efforts

is conducted to substitute the processed materials. The recycle effort shown from the 469,655 m3

of water being pumped from the tailing dam to the plant (thickener unit) to be used in the process.

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.

www.antam.com

37




MATERIALS IN NICkEL MINING AND PROCESSING

Description Usage Total (thousand ton)

Nickel Ore Ore preparation 1,292

Coal Reductor Reductor 49.76

Limestone Ore preparation 13.60

Anthracite Reductor 12.19

Burnt Lime Refining 2.48

Carbide Refining 1.25

Others Refining 0.35

Most of the waste contains nickel component that can be used as nickel ore substitution. Therefore,

the recycle effort in ferronickel smelting process as follow: 17,845 tonnes of metals from slag

treatment are being re-used in the process. This recycle process can substitute nickel ore as much

as 6.6%. Furthermore, at least 40,385 tonnes of dirt (pellet shape) are being fed back into the

process and substitute nickel ore requirement as much as 3.13 %.

Managing Waste, Avoiding Catastrophe

Furthermore, besides improving the environment management effort to comply with the regulation,

Antam also participates in PROPER (Environmental Compliance Audit) program conducted by

the Ministry of Environment. The last PROPER ranking in 2005 for Nickel Business Unit Pomalaa

and Gold Business Unit Pongkor are blue. It means Antam has implemented environmental

preservation effort as instructed by the regulation. 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. Antam executes effluent

analysis at various sampling points and requests independent laboratory to carry out inspection

every three months. The findings will be submitted to the authorities regularly.

From October until December 2007, monitoring result showed the level of total suspended solids

(TSS) in several effluent quality observation points in Pomalaa operational areas, exceeded the

effluent quality standard as required by The Government Environmental Regulation (Peraturan

Menteri LH) no.9/2006 on Waste Quality Standard for Nickel Mining Business and/or Activities. It

happened as result of high rainfall during those months, caused overflow of stockyard resulting in

the waste with suspended dense content. To anticipate in the future, Antam will conduct repairs

and improve the wastewater channel, hence such contamination may not occur.

38



TREATED WASTE WATER QUALITY

Pomalaa Effluent

Parameter Environmental Standard

Lowest Highest

pH level 6-9 7 8.5

Total Suspended Solid 100 3.2 345.6

Copper 2 0 0.0905

Cadmium 0.05 0 0

Zinc 5 0 0.327

Plumbum 0.1 0.005 0.028

Nickel 0.5 0.009 0.056

Chrome Hexavalent 0.1 0.0008 0.022

Chrome Total 0.5 0.0015 0.11

Iron 5 0.002 0.364

Cobalt 0.4 0 0

Pongkor Effluent

Parameter Environmental Standard

Lowest Highest

pH level 6-9 7.03 8.4

Total Suspended Solid 200 3 69

Copper 2 < 0.02 0.28

Zinc 5 0.01 0.19

Chrome Total 1 < 0.02 0.02

Cadmium 0.1 < 0.03 < 0.03

Mercury 0.005 < 0.0005 < 0.0005

Plumbum 1 < 0.01 < 0.01

Arsenic 0.5 < 0.005 < 0.005

Nickel 0.5 < 0.02 < 0.02

Free Cyanide 0.5 < 0.005 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. An independent laboratory is involved to do such

inspection every three months. The findings are submitted to authorities on regular basis.

In 2007, the measurement result on all Antam’s operational area did not indicate below the

emission quality standard set by the local and national regulation. This achievement due to various

prevention efforts implemented in Antam operational areas.

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39



EMISSION LEVEL

Parameter EnvironmentalStandard

Pongkor Pomalaa Unit

Lowest Highest Lowest Highest

NO2 1000 1 71 0.155 44.427 mg/l

SO2 800 1 460 0.43 127 mg/l

Lead 12 0.03 9 0.004 0.052 mg/l

Particle 350 2 59 0.68 337 mg/l

Solid Waste

Solid wastes usually come from mining activities such as slag and tailing. Tailing is material left

from the ore separation process from hydrometallurgy process while slag is by-product material

of metal separation from the ore from pyrometallurgy process. Normally slag is a mixture of metal

oxides and used as waste disposal mechanism on metal separation process. Different process

methods result in different tailing and slag.


Gas emission management from ferronickel plants starts from the discharge from drying,

calcinations, smelting and refinery process. The emission control facilities at ferronickel plants are

bag house filter, cyclone and electrostatic precipitator.

Solid waste from nickel smelting plant amounted to 698,060 tonnes of slag and used as filling

materials for road and the beach. The surrounding communities also use slag. The use of slag is

under permission from the Ministry of Environment.


From underground mining in Pongkor, total tailing volume was 186,271 dmt. Most of the tailing is

being backfilled to the mining stope, which was 135,989 dmt. 96,744 dmt is being pumped to the

tailing dam, and as much as 89.527 dmt to mud collection dump.

Most of the waste materials (the stones with no ore content) are used for mining road and some is

being put back to mine.

The tailing produced from processing has been tried as plant agent. The tailing ability as plant

agent depends on the tailing shape; the smaller the granules, the more difficult it is as plant agent

due to bad soil drainage. It is also determined from the tailing content itself. The use of tailing has

been approved by Ministry of Environment.

Electrostatic precipitator at ferronickel plant.

40



Burying the Waste, 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. The application of

this technique also allows the disposal of waste from mineral

process. Such application will produce physical and chemical

stability to the environment.

This process has several advantages, such as:

• Tailings are kept underground. As such, negative impacts to

the surface could be avoided. It is also environment friendly

as it does not require a vast tract of land to store the tailings,

the volume of which could be very large.

• Strengthening the base of the mines and improving the mine’s ventilation circuit.

• Preventing the ceiling from collapsing due to excessive air pressure.

• Supporting ore extraction process.

There are also several disadvantages of this method, such as:

• The existence of groundwater pollution risk by the tailings.

• Un-mined mineral components could be dissolved in the tailings

• Mining cycle is delayed.

In view of its environmental and social advantages, Antam utilizes cut and fill underground gold mining process,

implements backfilling method by utilizing the tailings. To reduce the risk of ground water pollution, Antam uses

adhesive materials such as cement at Pongkor.

During the gold mining process, slurry from the plant is processed in the cyanide detoxification unit to eliminate the

existing cyanide. Slurry is then streamed to a thickener facility, where flocculation process takes place to separate

solid slurry from the liquid one. The overflow will stream down to the tailing dam, while the thicker part will go into the

backfill dam.

When the mine stope is ready to be filled, the tailings will be mixed with cement in the backfill silo, and then pumped

back into the mine. Unused slurry will go into Fatmawati mud stockpile. This activity is done regularly, as needed.

In 2007, out of 322.260 DMT volume of tailings, as much as 135.989 DMT were being returned into the mining gap. On

average, filling is done on three mine fronts every month.

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41



Hazardous And Toxic Waste (B3)

Antam various mining processes resulted in various B3 wastes. The government regulates the

handling of B3 waste. 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.

Type of Waste Amount Units

Oil, Used Oil and Sludge Oil 1,012,791 Liters

Used Grease 2,539 Kg

Ashes 3,811 Kg

Solid Hazardous and Toxic Waste

Used packaging, contaminated materials, medical waste and others 21,862 Kg

Used chemical bottles 520 Unit

Used batteries 96 Unit

Liquid Hazardous and Toxic Waste 3,000 Liters

At Logam Mulia, suppliers will take back empty packaging to be managed according to the

regulation.

Greenhouse Gas

Antam also pays attention to the greenhouse gas emission, in line with the global demand to lower

contribution on global warming. Currently, Antam is calculating greenhouse gas effect (GGE). In the

future, Antam expects the amount of GGE released can be independently calculated so reduction

initiatives can be done.

Biodiversity

From 6,047 ha of Pongkor mining area, approximately 2,658 ha or 44% of total area is located in

the Halimun Salak Mountain National Park. This is important for Antam as always gives its best

effort to live harmony with natural environment and surrounding communities. As realization of

Antam’s concern, Antam and Halimun Salak Mountain National Park Agency conduct research on

Java Eagle (Spizaetus bartelsi), an endangered species on the red list of International Union for

Conservation of Nature-(IUCN). Even though Antam has no direct impact on protected biodiversity,

flora and fauna survey has been identified species listed in Red List IUCN (2005).

42



NUMBER OF SPECIES SURROUNDING ANTAM SITE

Category Fish Birds Other Fauna Flora

Critically Endangered - - - 4

Endangered - - 2 2

Vulnerable 1 1 - 3

Near Threatened - 2 - -

Least Concern 3 51 3 12

Data Deficient 1 - 2 1

Antam also concerns on the environment condition in its operational areas. For example, the

sedimentation problem in Pomalaa operational area is getting worse by the immigrant habit to cut

down mangroves forest.

Mine Closure Plan And Post Mining Activities

Currently Antam’s mine closure program and post mining activities take place at Gebe (nickel,

open pit), Cikotok (gold, underground) and Cilacap (iron sand, open pit).

Mine closure and post mining activities cover the following:

• The rehabilitation of disturbed land. By returning the land to its function and use.

• Revegetation is being done through observing diversity and functions of local species, therefore

emphasize on multicultural replantation.

• Preparation and development of renewable local resources to support post mining activities.

At Cikotok, the post mining activities also involve the community in fruit and forest plantation

(which used as an opportunity to create new opportunity). Antam offers support in form of training

and provide seeds. The type of tree utilized are mangosteen, mango, rambutan and durian while

for wood producing trees is jenjeng wood.

Environmental Compliance

Although Antam strives for conduct environmental management based on standards and regulation,

currently Antam faces claims from local communities in Tanjung Pinang on environmental issues,

which are allegedly by bauxite mining operations at Kijang in 2005. Antam believes the claims will

be settled favorably under applicable law and regulation.

Reclamation at the closed Gebe nickel mine.

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43



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, Antam took part in the effort to reduce global warming by planting as much

as 4,000 trees concurrently at all its operational areas on November 28, 2007. These activities

involved communities surrounding operational area to raise awareness on the threat of global

warming. This event is planned to be held every year.

The tree planting initiative is done concurrently in various Antam’s business units such as:

Pongkor Gold Mine

The planting of 1,350 fruit plants (rambutan, guava, durian, mango, jackfruit and petai) and 800

forest trees (rasamala, puspa, jamuju, mahogany). Approximately 300 people involved, among

others were employees, community leaders, ordinary people and local government.

Kijang Bauxite Mine

The planting of 850 mahogany trees and 150 eucalyptus trees.100 people involved at Wacopek

East Bintan sub district.

North Maluku Operation: The planting of 400 trees (mango, guava, longan, rambutan, papaya,

jackfruit, nutmeg, cempedak, and papaya). 30 people involved including Antam employees, other

companies, communities and village officials.

Pomalaa Nickel Operations

The planting of 450 trees (glodokan tiang, kayu biti) at Kolaka Sports Center involved more than

300 people.

Gebe Nickel Mine

400 mahogany trees were planted by 70 people.

Cikotok Gold Mine

The planting of 400 trees (mango, mangosteen and durian) in Pasir Laban involved 300 people.

Cilacap Iron Sands Mine

The planting of 400 trees (Glodok/Pelindung) in Karang Benda village Adipala sub district involved

about 200 people.

Head Office

Approximately 10,000 mangrove trees are planted at Angke Kapuk protected forest and Soedyatmo

highway. There were about 350 people took part in planting.

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.

Planting trees by Antam’s Employees.

44



Restoring Mangrove Forest in Pomalaa

Mangrove Forest is a very important element in the

coastal area, as a habitat and breeding place to

various coastal animals. Furthermore, its function to

help to lessen water flow, therefore makes the

sedimentation process better. In the area where

mangrove forest is being destroyed for development,

the disruption on sedimentation process and the habitat

function often create problems to the local people.

I n Pomalaa operational Area, South Sulawesi, 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. The area

was formally mangrove forest that was cut down to open settlements and to meet the migrant needs

on woods. The mangrove deforestation reduces the area’s ability to hold back the sedimentation that

stream from Antam’s mining area.

The deforestation also caused the shrinkage of the fish communities in the vicinity. The fishermen

have to go out all the way to middle of the sea to get the amount of fish they need. Most of the local

people blame Antam’s sedimentation as the reason of mangrove deforestation, therefore created

tension between Antam and the surrounding communities.

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, therefore

since 1991 Antam has carried out the mangrove forest planting as part of reclamation activities.

The planting was done along the beach where Antam collaborated with Haluoleo University to get

the plant species, seeding technique, fertilization and the optimal planting season for the area. Antam

has its own seeding activities where the seed is taken from the local species within the area. In 2007,

Antam has planted 235,000 mangroves trees on 23.5 ha of coastal land.

Besides planting activities, Antam also educate communities of the mangrove forest function and

benefit for all parties. Because the success in mangrove trees planting, community realized the

importance of mangrove forest. At the end, they took part in Antam’s planting effort.

Antam expects program continues along with Antam’s reclamation activities until mangrove forest

back to its original state.

Supporting the Effort to Preserve Protected Fauna

Antam operational areas are located near to areas with rich biodiversities. Various species in the area are not

just valuable from conservation aspect, but also from economic standpoint. One of Antam’s contributions to

preserve protected species, Antam invited various parties, from leading researchers to national park bureau to

do in-depth studies. As an example of the studies are the research on coconut crab (Birgus Latro) at Yoi Island,

Central Halmahera (see box) and Java Eagle (Spizaetus Bartelsi) at Halimun Salak Mountain National Park.

www.antam.com

45



Coconut Crab, the Coconut Tree’s Best Friend at Yoi Island

Yoi Island in the Regency of Central Halmahera is located 20

km from Gebe Island. Like Gebe Island, this little island with the

population of 563 people, has abundant marine natural resources.

One of its potential natural resources and the current local favorite

is coconut crab (Birgus Latro).

The large anthropoid – with the length reaching 1 meter and

weight up to 17 kg- is known to climb coconut trees. It is no

surprise that the growth is trailing the spread of coconut plants

in 33 tropical countries.

Coconut crab is well known for its delicious taste and as specialty

dish for the folks from Northern Maluku. Priced at Rp50,000 per kg (up to Rp300,000 when served in restaurants), the

species has high economic potential. The crab is hand captured almost everyday.

However, with the slow growth of coconut crab, the high economic potential may endanger their survival. According

to testimony by the local fishermen, there’s a decrease in the number of coconut crab captured. If previously they

could catch 20 crabs per night, now they are only able to get 5 to 6 crabs and the size are much smaller compared

to years ago.

Currently coconut crab is listed in the protected endangered species according to Government Regulation No. 7/1999

on the plants and animals species preservation. Although in 1983 until 1994 this anthropoid is categorized as rare

species by the IUCN Red List, since 1996 there is deficient data on this animal group. More studies on the lifecycle and

the habitat of this animal need to be conducted.

Realizing the importance of conservation effort and sustainable fishery activities for this species survival, Antam,

working together with the team from Department of Water Resources Management, Bogor Agricultural Institute (IPB)

lead by Dr. Ir. Sulistiono M.Sc., conducted a study on the habitat, population and reproduction pattern of coconut crab

in Yoi Island.

As part of Antam’s environment and social responsibilities to the area, we hope the study findings become an input

for the local government to take action in preserving the species. Furthermore, we hope the findings can open ways

for cultivating the species and regulating the catching based on it reproduction pattern, thus, providing an alternative

livelihood and sustainable economic booster for the local community.

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. (Currently, the mine’s physical closure has achieved

60% and it is estimated that by April 2008, the closure will be completed).

46



The Key Success Factor of Our Successful Performance

Concerns towards workers, employees and indigenous people are the key success factors

to corporate’s performance

Human resources are among Antam’s most valuable assets. Therefore, Antam strives to provide

them with the best available working environment and conditions. In return, Antam expects its

employees to make meaningful contribution to the growth of Antam.

As a mining company in Indonesia with the vision to becoming a company with an international

standard in 2010, Antam strives to continuously develop the skills of its work force to the highest

level as possible in order the face future challenges.

Recruitment

Antam strives to recruit the best candidates that are highly dedicated to the mining world. The

amount of permanent employees declined in 2002-2007. However, there has been an increase

in non-permanent employees. One of the reasons was because a number of operational areas

such as Gebe, Cikotok and iron sands mines had been closed down as the mine reserves had

been depleted.

EMPLOYEE TURNOVER 2007

Jakarta Head Office

Strategic Business Unit (SBU) Nickel

SBU Gold

SBU Bauxite

SBU Logam Mulia

Geomin Unit

11

53 11

611

60

1113

24

Recruitment Dismissal/Retired

NUMBER OF EMPLOYEES

Permanent

Non-permanent

04 05 06 07

921

712

902

63 1

003,3

2 58,2

9 47,2 107,2

Social Empowerment

www.antam.com

47



Employees Welfare

Antam is committed to providing benefits especially to its permanent 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, work incentives, severance

pay, overtime pay, pension benefits, business trip allowances, medical allowance and year

end bonus.

The pension program includes medical allowances for retirees and their families of three children.

The children who qualify for the program are those who are 25 years old or below, do not have any

source of income and/or are not married.

The employee’s income components include:

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. It is one of Antam’s top priorities in its efforts to minimize all

types and levels of accidents.

Zero Accident concept is applicable to all employees, partners, people and the environment in

the workplace. In the environment sector, the provisions of Antam’s Quarter Impact Analysis are

implemented at all operational activities. The education on HSE is also routinely held.

No PERMANENT INCOME

1 Main salary

2 Representation Allowance

3 Company’s Allowance

4 Additional Company’s Allowance

5 Position Allowance

6 Special Allowance

7 Work Performance Allowance

8 Business Unit Allowance

No NON PERMANENT ALLOWANCE

1 Reading Allowance

2 Transportation Allowance

3 Non-Practice Allowance

4 Regional Allowance

5 Shift Allowance

6 Cashier Allowance

7 Adjustment Allowance

8 non-PHDP Wage Allowance

9 Benefit increase

10 Overtime Allowance

11 Field Allowance

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2007 OCCUPATIONAL HEALTH AND SAFETY PERFORMANCE

Unit Usaha Incident Category TOTAL

Minor Serious Fatal

SBU Nickel 9 4 - 13

Buli & Gee Nickel Operation

11 1 1 13

SBU Gold - Pongkor 4 - 1 5

SBU Logam Mulia 1 - - 1

SBU Bauxite - Kijang 1 - - 1

Cilacap (post mining) - - - -

Cikotok (post mining) - - - -

TOTAL 26 5 2 33

Total working hour : 15.137.690 hoursWork days lost : 16.710 days

Two fatal accidents took place in 2007, each at SBU Nickel - North Maluku Operation and SBU

Gold - Pongkor. The incidence happened due to the increased intensity of mining operational

activities that contributed to the increase in risk in occupational safety and health.

The tragic accidents fell upon Antam’s mining business partner. Therefore, Antam strives to improve

the workplace safety and health management system, especially for the business partners.

Health Management

Antam is concerned about the medical benefits for its employees.. The medical services provided

for all employees include preventive as well as curative treatments of illnesses/diseases.

Among the proactive efforts undertaken by Antam regarding health management is the education

on serious illnesses for its employees. For example, in February 2007, Antam held a scientific

lecture on HIV/AIDS and illegal drugs. 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

all of its employees.

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. There has been no report on any form of nepotism or gender, ethnicity, religious or

age discrimination with regards to recruitment, working, training, compensation, allowance or

personnel dismissal issues.

Antam also complies with the ILO number 111 on equal salary for the same job. There is no

discrimination against female or male employees on salary issue. Rewards are given to employees

based on competence and length of service with the company regardless of their gender.

Based on 2007 data, Antam’s work force consisted of 2,701 permanent employees and 136 non-

permanent employees. Out of this number, 200 employees occupy managerial level position, of

which 20 employees (10%) are female.

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49



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. Antam established a Learning

Center in October 2006 at Jakarta Main Office. 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.

Antam strives to give each employee 12.5 training days every year. In 2007, the average training

days were 10 days. However, Antam was able to improve the productivities of its employees as

the training programs were conducted based on a learning need analysis. The performance of

Pongkor, which exceeds its production target, was an example of this productivity improvement.

Antam’s 2007 Training Man days:

1. Head office: 2,162

2. SBU Nickel: 1,4285

3. SBU Gold: 7,815

4. SBU Logam Mulia: 1,469

5. SBU Iron Sands: 435

6. Geomin Unit: 1,265

In 2005, Antam spent Rp14 billion in training programs while in 2006 the training spending reached

Rp21 billion. In 2007, out of Rp40 billion training budget, Rp28 billion was realized.

In 2007 more than 1,600 people received education and training that helped them find suitable

jobs and positions within the company. They received hard competencies trainings in accordance

to their roles and soft competencies trainings in communication, negotiation, and political skills,

as well as CSR principles.

The implementation of Antam’s training programs are based on the the needs of the organization.

The participants are chosen based on several considerations such as competency gap/strength

analysis, work analysis and organizational need analysis.Monitoring activity at Power Plant at Pomalaa.

05 06 07

41

04

01

42

82TRAINING AND EDUCATION EXPENSES(in billion Rupiah)

50



The training programs provided at Antam are:

1. Leadership Development Programs(AMDP, ALDP).

2. Core Sector (mining, geology and process) Specialist Development Program (ASDP).

3. Meeting Coordination Implementation and Work Unit Consolidation Training.

4. E-learning Program (up to beginners study).

5. Pre-retirement Program.

6. Overseas trainings

7. Case study program.

8. Internship program.

9. Study aid and scholarship (Bachelor, Master, Doctorate degree).

10. Induction Program (For shift worker, 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 Score Weight Index

Work 77,331 0,137 10,594

Work Benefit 75,900 0,158 11,992

Work Assessment 67,767 0,047 3,185

Supervision/Superior 78,238 0,068 5,320

Team Work 81,867 0,066 5,403

Working Condition 75,136 0,249 18,709

Communication & Information

77,417 0,069 5,342

Self Development 71,090 0,071 5,047

Organization 73,229 0,136 9,959

1 75,552

The Freedom of Associations and Industrial Relations

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). 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, and Collective Bargaining 99).

The objective of the industrial relations among shareholders, buyers, investors and all stakeholders

related to Antam’s operations, is to achieve a win-win situation.

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.

Antam Management Development Program.

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51



Statement fromdr. Guntur Tjora, Head of Perpantam

With the motto “Productivity and Welfare Together” that is inline with Perpantam’s

organizational guidelines “Perpantam for a better Antam”, we strive to create a conducive

and harmonious business environment. Perpantam is not established to attack Antam, but

to help Antam improves its performance.

Perpantam is one of the pillars that support the corporation. Perpantam will not fight for

the workers’ demands without studying the company’s condition. Perpantam will neither

support any policy of the company that does not pay attention to the workers’ condition.

With regards to the workers’ rights and obligations, Perpantam and Antam’s management

are in the same position.

Perpantam adheres to the principles of:

1. Equality

Perpantam and Management are equals in making decision/policy involving the

workers’ rights and obligations.

2. Fairness

Aspirations raised by the workers or policies implemented by the management should

be fair and are acceptable to both parties. For example, if employees request 20 times

increase in salary, Perpantam will view such demand as unreasonable. On the other

hand, Perpantam will view any request to employees to work overtime 5 times more

often in a week by the management for example, as an indecent request. Perpantam

will only fight for aspirations that meet the principle of decency.

3. Balance

To have the balance between rights and obligations with regards to welfare issues.

Perpantam has handled several conflicts well. When agreement can’t be reached among

employees, Perpantam and Management, Perpantam will bring the problems to Bipartite,

an independent institution registered at the Department of Labor. This mechanism has

been agreed upon in the Collective Bargaining agreement . This institution will recommend

solution to the problem, and up to this moment, its recommendation has been well received

by all parties.

Furthermore, Perpantam expects:

1. The management to be more sensitive to the employees’ conditions and to be more

responsive to constructive aspirations.

2. The management to increase its cooperation with Perpantam to develop the company

together to achieve a sustainable growth forAntam.

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Conflict Resolution

Antam’s Human Resources Policy contains a clause that regulates the process of dispute

settlement. The Collective Bargaining chapter 16 verses 85-95 and chapter 17 verses 96-99 also

regulates this issue. If a disagreement cannot be settled internally, Antam and the employees

could request an arbitration proceeding from a third party. As the last option, the dispute could

also be settled through the Labor Court.

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 . Through

its community development programs, Antam is continuously learning on how to improve

our interactions with local and indigenous people. 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 committed to care for its human resources, the workers, staff, indigenous people as

well as the community surrounding the operation areas. It is a manifestation of the company’s

appreciation to those who are behind Antam’s progress and success.

From Nanggung Village, Pongkor

Outside Nanggung Village, Pongkor

ORIGIN OF EMPLOYEES 2007

77%

23%

From nearby regions (Kijang and Riau Islands)

Outside Riau Islands

SBU Bauxite KijangSBU Gold Pongkor

49%

51%

Southeast Sulawesi

Outside Sulawesi

Other Sulawesi regions

SBU Nickel Pomalaa andNorth Maluku Operations

43%

22% 35%

www.antam.com

53



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., Commitments to respect Human

rights have been campaigned globally. Human rights issue is also stated in Antam’s code of

conduct chapter 1 on Equality and Respects toward Human Rights.The establishment of GCG

Committee, which directly reports to the Board of Commissioner, could also be interpreted as

Antam’s commitment toward human rights issues.

Implementation of human rights in Antam is based on the company’s human resource policy, code

of conduct and collective bargaining agreement. All of them refer to the national and international

arrangements.

In its code of conduct, Antam ensures that there should be no human rights principles violation

in all of its operational activities. Among the issues that are discussed in the code of conduct are

rights equality, non-discrimination, freedom of association, 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. By adhering to this principle, Antam

believes that discrimination incident will not took place in the company.

With regards to supplier relationship, Antam requires the inclusion of human rights articles in

the working contracts with all partners and suppliers. The partnership will only be established

once they undergo a selection process and the relationship with suppliers will be based on

ethical principles.

Policy on Child Labor and Forced LaborAntam is in compliance with the Indonesian Regulation on Labor as well as with the International

Convention related to child labor and forced labor. 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, and not forced.

Education Program on Human RightsThe 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, Antam’s

employees and the environment.

The socialization of code of conduct to Antam’s employees and partners is done continuously,

therefore the respects to human right principles can be maintain at highest standard.

To monitor many aspects related to human resource and human rights, Antam created Nomination,

Remuneration and Human Resource Development Committee. Through these efforts, Antam

oversees the implementation of human rights principles, so that any incidents of human rights

violation against employees and the surrounding community can be prevented from occurrence.

Implementing Human Rights Through Commitment And Education

54



Antam implemented CSR long before CSR was campaigned globally

Antam has implemented corporate social responsibility programs for a long time with satisfactory results. Antam continuously studies and implements issues that are related to corporate social responsibility towards the community, especially those surrounding Antam’s mine site and business operation.

One of the CSR embodiments is put forth in various activities as summarized in Antam’s CSR program. The program covers activities in social, environment, human resource and economy sectors.

By applying the “beyond compliance” principle, Antam’s current and future CSR programs have and will go beyond the compliance of Law No. 40 year 2007 on Corporation regarding CSR.

CSR PROGRAM BUDGET

(In billion Rupiah)

Program 2006 2007* % Increase

Community Development 15 37 150

Environmental Development 11 8 (27)

Partnership 5 10 108

TOTAL 31 55 78

*The 2007 budget has not entirely included the Natural Preservation element (as part of CSR in accordance to PerMen BUMN 2007)

In one of the details, Antam’s CSR programs on social sector are put forth in the implementation of Community Development (ComDev) Program, Partnership Program (PK) and Environment Management (BL). The programs are applied to all of Antam’s operational area, from SBU Bauxite Kijang in Riau islands, SBU Gold Pongkor in Bogor, main office, UB Geomin and SBU Logam Mulia in Jakarta, SBU Nickel Pomalaa in Southeast Sulawesi, 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. ComDev and Environment Management program is inseparable from the company’s operational activities. Antam’s Community Engagement is included in its ComDev program.

Meanwhile, 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.

Education is one of the main focus areas ofAntam’s CSR initiatives.

Head Office, SBU Logam Mulia andGeomin Unit

SBU Nickel

SBU Gold

SBU Bauxite

COMMUNITY DEVELOPMENTBUDGET ALLOCATION 2007

77%

8%3%

12%

ENVIRONMENTAL DEVELOPMENTBUDGET ALLOCATION 2007

SBU Nickel

SBU Gold – Pongkor

SBU Bauxite

Head Office,Geomin Unit, Cikotok and Cilacap

30%

41%21%

8%

PARTNERSHIP PROGRAMBUDGET ALLOCATION 2007

SBU Nickel

SBU Gold

Head Office andCilacap

Managed through the Ministry of State Owned Enterprises

43%

43%

6%

8%

Building Sustainability Together with Community

www.antam.com

55



The Community and Environment Development activities that had been done and are currently

on-going are:

1. Education

2. Health Improvement

3. Public Facilities

4. Religious Facilities

5. Natural Disaster

6. Environment Preservation

7. Active Involvement from community

Overcoming malnutrition One of the routine programs at SBU Gold - Pongkor in 2007 was to support 30 children under 5 years old with malnutrition problem. The program was implemented based on the data provided by the village officials and community leaders. This program provided the children with extra meal, immunization, milk, green bean and other needs for 6 months, and a team from Antam and Village Integrated Service Unit (UPTD) monitored the development.

Clean Water Facilities Construction Clean water is an absolute necessity for the community. For that reason, Antam built Clean Water Facilites (SAB) to improve the life quality of the surrounding communities. Clean water facility has been constructed in SBU Gold - Pongkor, SBU Nickel - Pomalaa and SBU Nickel - North Maluku Operation.

At SBU Gold - Pongkor, water from the water spring in Cileles Halimun Mountain is streamed down for 25 km to Cisarua and Malasari Village using bamboo pipes. The direct benefit from the SAB is now experienced by 2000 people in the area. SAB in Pongkor is a collaboration effort between the community, government and Antam.

The parties who had been involved in the joint-cooperation contributed to the success of creating the Rp 1 billion clean water facility. Antam’s contributions were in form of raw materials and funds for a total amount of Rp900 million. The community provided manpower and self funding for a total amount of Rp100 million, and the local government acted as the coordinator of the stakeholders interests.

The local government and the community are responsible for the maintenance of the SAB facility in Ulu-ulu. They charge Rp1,000 per family as SAB maintenance fee. Infrastructure DevelopmentIn addition to clean water facilities, Antam also pays attention and accommodate other facilities that are deemed important and can improve the quality of life. Antam has built facilities such as roads, schools, bridges and houses of worships in accordance to the local community needs.

At Antam’s operational areas, the construction of public facilities and infrastructures, either new buildings or repairing the existing facilities, has become routine. In 2007, Antam has built roads, bridges, worship houses, repaired school buildings, renovated the resident’s houses and many others.

Antam helps to build worship places at Pomalaa.


SBU Nickel

SBU Gold

SBU Bauxite


77%

8%3%

12%


SBU Nickel


SBU Bauxite


30%

41%21%

8%


SBU Nickel

SBU Gold



43%

43%

6%

8%

56



Revegetation-Green Antam ProgramMangrove Forests in Indonesia have been experiencing degradation from year to year. In 2005, there were only 1.5 million hectares of Mangrove Forests, compared to 3.7 million hectares in 1993. About 73% of the forests fall under damaged category. This situation is very dreadful considering Mangrove Forests are vital to the environment. Locally, they act as the ecosystem provider that supports life, while globally, they have very important roles to lessen global warming. As part of Antam’s concerns to the poor condition of the country’s mangrove forests, Antam planted 10,000 trees at Angke Kapuk Protected Forest in December 2007. The program was carried out in collaboration with Jakarta Agriculture and Forestry Agency. Antam is planning to continue the program in the future.

Medical Equipment Aid for Senior HomeIn the business areas where Antam has entered post-mining phases, Antam continues to be concerned about the well being of the surrounding communities. Antam intends to help build communities that are independent and possess good quality of life. One of ComDev’s post-mining programs in Cilacap in 2007 was to care for the senior citizens. Antam provided senior homes with medical supplies such as medications, mattresses, blankets, bed sheets and others. Caring for the senior citizen is form of Antam’s commitment to improve the quality of community health.

Community InvolvementAntam actively participates in local development and strives to support local government development policy through synergical CSR programs that are called Trimitra (Antam – Local Government - Community). Trimitra facilitates the meetings and discussions for local development between the company, community and local government. Such meetings are called Development Planning Convention (Musrenbang). Discussions on community needs and their realization plans take place at the Musrenbang.

Natural Disaster AidNatural disasters which occurred in several parts of the country were also assisted by the program. Antam sent aids to the victims of these natural disasters in form of foods, medicines and medical services. Antam also sent out rescue teams to assist the people suffering from the disasters.

Several areas that suffer natural disaster and are assisted by Antam’s Environmental Development Program are flood over Jakarta at the beginning of 2007, the eruption of Gamkomora mountain in North Maluku, flood and landslide in Morowali, central Halmahera and earthquakes in West Sumatra, Yogyakarta and Bengkulu.

Partnership ProgramIt is a program to empower small businesses to become strong and independent entities by using the fund from the company’s profit. The program provides loans for micro, small and medium business (prioritizing those next to the operational area) with small administration fee that has to be returned in installment.


SBU Nickel

SBU Gold

SBU Bauxite


77%

8%3%

12%


SBU Nickel


SBU Bauxite


30%

41%21%

8%


SBU Nickel

SBU Gold



43%

43%

6%

8%

Antam aids victim of Gamkonora Mountain eruption at West Halmahera.

www.antam.com

57




SBU Nickel

SBU Gold

SBU Bauxite


77%

8%3%

12%


SBU Nickel


SBU Bauxite


30%

41%21%

8%


SBU Nickel

SBU Gold



43%

43%

6%

8%

Snapshot of Antam’s CSR Program

SBU Nickel Pomalaa

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. The

first batch program was held in September until December 2007. Total

participants were 208 people in 7 villages.

The local government also supported and socialized this program. Learning

activities included reading, writing and counting as well as practical know-

how skills such as sewing and cooking. The program’s instructors were

school teachers and UPTD Kolaka Sub-district Education Agency. This was

the first time such a program was carried out by Antam, and due to its

success, it will be continued in the coming years.

Seaweed Partnership Program

This program was launched in 2005. It was initiated by the PKBL team of SBU

Nickel Pomalaa by conducting a survey on the economic potential of the areas

surrounding the mine. The existing seaweed cultivation groups were provided

with additional financial capital for worker, seed, nylon rope and building wood

platform. They were also given additional training on seaweed cultivation and

processing.

• 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: Rp6,500,000 to Rp7,500,000

• Exports to Japan, China, USA, etc (indirectly, through buyers from other region)

• Cultivation Period: Harvested every 45 days.

Seaweed is one of the most valuable and competitive products of Southwest Sulawesi, especially the Kolaka

regency. Based on a research on this business sector, the sea in this area is one of the three seas in Indonesia

that are most suitable for seaweed cultivation.

58



Drs.H.Buhari Matta.M.S

Regent of Kolaka, Southeast Sulawesi

The physical developments undertaken by

Antam have moved the economy and improved

the community’s welfare.

Antam’s presence at Regency of Kolaka is truly

felt. While Antam’s CSR programs are stipulated

by law, Antam’s sense of moral and social

responsibilities cause Antam to continuously

develop the communities together with the

local population.

The physical development contribution that was done by SBU Nickel Pomalaa, such as

public and infrastructure facility, education, health improvement and worship houses

facilities, has directly or indirectly move the economy of the local people.

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.

Antam also supports the Home Renovation program for the needy people conducted

by the Kolaka local government. There were at least 7,000 homes that received floor

renovation program and 800 homes that received disposal duct installation. Antam

provided 20,000 pack of cement for this program.

The Illiteracy elimination program supported by Antam has also reaped great success.

www.antam.com

59



SBU Gold Pongkor

Free Medication Program

Partnering with doctors, this once a year free medication program

has truly been beneficial to the community. Antam brings the

doctors to visit a village’s public hall, where the free medication

program has been announced before hand. In one day work, the

doctor normally can handle up to 2,000 patients.

However, the local community wishes for an increased frequency

of the doctor’s visit. They also wish that the doctors do not only

come to the public hall, but also to reach the people in villages.

The reason that due to the long distance between the villages and the public hall, the transportation cost can

go beyond the medication fee, especially if the patient suffers from heavy illness.

Ivory Stone Sculpture Partnership Program

Although Udin has only officially partnered with Antam since 2006,

Antam has given special attention to Udin since 2002 for his business

and talent in the ivory stone craftsmanship.

Since he was small Udin, who grew up in Pongkor area, has had

a talent in the art of ivory stone carving, a stone which carries

unique characteristics. He refined his artistic talent at art school in

Yogyakarta. He is also a talented painter.

Udin first joined an exhibition with Antam at INKOWAPI (The Association of Indonesian Cooperatives and

Female Entrepreneurs) in 2006, and he won the first place for Best Craftsmanship. In Indonesia Expo and

Kowani fair in 2006, his work was purchased to be used as the present for the winner of Adipura Award from

the minister of Evironment. In the INACRAFT exhibition in 2006, President Susilo Bambang Yudhoyono bought

his work directly.

Partnering with Antam means more than expanding market opportunities. It can also develop the talent

and art skills of local youngsters. The partnership provides not only financial assistance but also moral and

knowledge support.

60



Antam offers safe products and provide adequate safety information

Antam’s products such as nickel ore, ferronickel, bauxite and iron sands, with the exception of

gold or silver bars produced by SBU Logam Mulia, are not being directly used by the general

consumers, therefore the exposure to human safety and health is relatively minimal.

Antam’s gold and silver products are not listed in the hazardous material list, which is based

on the Government Regulation no. 74 year 2001 dan Ministry of Labor regulation No 187 year

1999. Antam, however, strives to take responsibilities beyond what is required by the law. 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.

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, compliance to specification and quick response

in order to ensure costumers will get the best service. 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).

Simple Life Cycle Of Mineral Products

ProcessesManaged byAntam

• Overburden• Landscape• Run Off Water• Air Ambience

Bauxite

• Overburden• Landscape• Run Off Water• Air Ambience

UndergroundReserve

• Tailing• Overburden

Emission

IndustrialRaw Material:Gold, SilverFerronickelAluminium

Metal ProcessingIndustry

Production

EndProduct

Open PitMine

ProcessingNickel Ore

IntoFerronickel

Processing ofGold Ore intoDore Bullion

UndergroundMine

GoldNickel

Processing ofDore Bullion

intoGold & SilverBar & End

Product

Open PitMine

Use

Waste (Recyclable)Effluent, mainly:• Cyanide• TSS• Emission

Emission

End Product

InitialProcess

InitialProcess

Shipment

Shipment

Responsibilities Towards Our Products

www.antam.com

61



Nickel Lifecycle

Nickel is a white-silvery metal that is hard but can be shaped easily. Because of its flexible nature

and unique characteristics such as its unchanging character when being exposed to oxygen, its

resistance to oxidation and its ability to maintain its original character under extreme condition,

nickel is commonly used for commercial and industrial applications.

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.

Ferronickel is the main material to make austenitic stainless steel (SS 200/300) that is widely used

by various industries. Besides stainless steel, nickel is also used in batteries, coins, and many

other applications.

Gold Lifecycle

Gold is mined using open pit mine or underground mine methods. In 2007 Gold production in

Indonesia was estimated at 171 mt out of the world’s total production of 2,444 mt (about 7%).

Antam’s gold mines in Pongkor and Cikotok are underground gold mines.

At Antam’s Pongkor mine, gold and silver are found bonded to each other within the ore. The

material that contains gold, or the gold ore, is then sent to a processing plant to extract dore

bullion, which contains 6-15% gold and 90-92% silver. The dore bullion is then sent to SBU Logam

Mulia to be refined into fine gold and silver bars.

Aluminum Lifecycle

Aluminum is a metal that is commonly found and used in various applications that range from

window or door frames, car engine components to space shuttle.

Bauxite is the main source of ore for the production of aluminum. It was named after the village

where it was found, Les-Baux-de-Provence in Southern France, by a French geologist, Pierre

Berthier. After being mined, Antam’s bauxite ore is washed, filtered and then kept in two-storage,

before being sold to alumina producers in Japan and China.

From top to bottom: Ferronickel, nickel ore, gold products, bauxite ore

62



Cross Reference with GRI-G3ECONOMICS PERFORMANCE INDICATORS

Economics Performance Page

EC1Economic value that is directly generated and distributed, including revenues, operating Costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

25-27

EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change.

Not reported

EC3Coverage of the organization’s defined benefit plan obligations.

25-27

EC4Significant financial assistance received from the government.

No financial aid from government

Market Presence

EC5 Range of standard entry level wages compared to local minimum wages at the area of operation.

Not reported

EC6 Policy, practices, and proportion of spending on local suppliers at the area of operation.

27

EC7 Procedures for local hiring and proportion of senior management hired from the local community at the area of operation.

52

Indirect Economics Impact

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

27

EC9Understanding and describing significant indirect economic impacts, including the extent of impacts.

Not reported

www.antam.com

63



ENVIRONMENTAL PERFORMANCE INDICATORS

Materials Page

EN1 Materials used by weight or volume.

36

EN2 Percentage of the use of recycled materials.

35

Energy

EN3 Direct and indirect energy consumption from primary energy source.

33

EN4 Indirect energy consumption by primary source.

34

EN5 The amount of energy saved due to conservation and efficiency improvements.

Not reported

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

No product relevant to this category

EN7 Initiatives to reduce indirect energy consumption and the achieved reductions.

34

Water

EN8 Total water consumptions by source.

35-36

EN9Water consumption that significantly affect the water sources.

35-36

EN10Percentage and total volume of water recycled and reused.

35

Biodiversity

EN11 Location and size of land owned, leased, managed in, or adjacent to protected areas and areas of high biodiversity value outside the protected areas.

31, 41

EN12Description of significant impacts by activities, products, and services upon the biodiversity in protected areas and areas of high biodiversity value outside protected areas.

41

EN13Protected or restored habitats.

31

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.

41, 44, 45

EN15 The number of IUCN Red List species and national conservation list species with habitats in Areas affected by operations, by level of extinction risk.

42

64



Emissions, Effluents, and Waste Page

EN16Total direct and indirect greenhouse gas emissions by weight.

Not reported

EN17Other relevant indirect greenhouse gas emissions by weight.

Not reported

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

41

EN19 Emissions of ozone-depleting substances by weight.

Not reported

EN20 NO, SO, and other significant air emissions by type and weight.

Not reported

EN21Total water discharge by quality and destination.

35-36

EN22Total weight of waste by type and disposal method.

41

EN23 Total number and volume of significant waste spills.

Not reported

EN24Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

No hazardous waste transported aboard

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.

Not reported

Products and Services

EN26 Initiatives to mitigate environmental impacts of products and services, and the extent of impact mitigation.

42-45

EN27Percentage of products sold and their packaging materials that are reclaimed by category.

Most of product shipped in bulk shipment

Compliance

EN28 Monetary value of penalties and the total amount of expenses that arise from sanctions due to non-compliance to environmental regulations

42

Transport

EN29 Significant environmental impacts due to transporting of products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

60

Overall

EN30Total environmental protection expenditures and investments by type.

30

www.antam.com

65



LABORS PRACTICES AND DECENT WORK PERFORMANCE INDICATORS

Employment Page

LA1 Total workforce by employment type, employment contract, and region.

46, 52

LA2 Total number and rate of employee turnover by age group, gender, and region.

46

LA3 Benefits provided to full-time employees

26, 47

Labor/management Relations

LA4 Percentage of employees covered by collective bargaining agreements.

Not reported

LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements.

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.

Not reported

LA7Rates of injury and fatalities, lost days, and absenteeism by region.

48

LA8Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

48

LA9Health and safety topics covered in formal agreements with labor unions.

Included in collective agreement

Training and Education

LA10Average hours of training per year per employee by employee category.

49

LA11Programs for skills management and lifelong learning that support the continued Employability of employees and assist them in managing their career.

50

LA12Percentage of employees receiving regular performance and career development reviews.

Not reported

Diversity and Equal Opportunity

LA13Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity.

52

LA14 Ratio of basic salary of men to women by employee category.

Not reported

66



HUMAN RIGHTS PERFORMANCE INDICATORS

Investment and Procurement Practices Page

HR1Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.

Not reported

HR2Percentage of significant suppliers and contractors that have undergone screening process based on human rights principles that have been implemented.

Not reported

HR3Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

50, 53

Non Discrimination

HR4Total number of incidents of discrimination and actions taken.

No decimation case

Freedom of Association and Collective Bargaining

HR5Operations identified in which the right to exercise freedom of association and collective actions taken to support these rights.

50-52

Child Labor

HR6Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor.

53

Permanent and Temporary Labor

HR7Procedures identified as having significant risk for existence of permanent and temporary labor, and measures to contribute to the elimination of 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.

Not reported

INDIGENOUS RIGHTS

HR9Total number of incidents of violations involving rights of indigenous people and actions taken.

No case claim on indigenous conflict

www.antam.com

67



SOCIETY PERFORMANCE INDICATORS

Community Page

SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including the start of operation, during the operation phase, and at the end of operation.

54-59

Corruption

SO2Percentage and total number of business units analyzed for risks related to bribery and corruption.

Not reported

SO3Percentage of employees trained in organization’s anti-corruption policies and procedures.

Not reported

SO4Actions taken in response to incidents of corruption.

20

Public Policy

SO5 Description on general policy and contribution on the participation in public policy development and lobbying.

17

SO6 Total value of financial and in-kind gains as the results of contributions to political parties, politicians, and government related institutions.

Antam does not receive financial benefit form non-operational activities

Anti Competitive Behavior

SO7Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes.

No anti-competitive case

Compliance

SO8Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.

No anti-competitive penalty

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PRODUCT RESPONSIBILITY PERFORMANCE INDICATORS

Customer Health and Safety Page

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

60

PR2Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

No case claim on health and safety of product

Product and Service Labeling

PR3Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

60

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

No case claim on product information

PR5Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

60

Marketing Communications

PR6Programs that support the adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

Not reported

PR7Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

No case to marketing communication

Customer Privacy

PR8Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

No case to information security

Compliance

PR9Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services.

No case to product provision

www.antam.com Laporan keberlanjutan Antam 2007

69

Corporate Information

COMMISSIONERS, DIRECTORS AND SENIOR STAFF

BOARD OF COMMISSIONERS

Wisnu Askari Marantika President Commissioner

Suryo Suryantoro Commissioner

Supriatna Suhala Commissioner

Irwandy Arif Independent Commissioner

BOARD OF DIRECTORS

D. Aditya Sumanagara President Director

Alwin Syah Loebis Operations Director

Kurniadi Atmosasmito Finance Director

Darma Ambiar Development Director

Syahrir Ika General Affairs and Human

Resources Director

CORPORATE INTERNAL AUDIT

Tuti Kustiningsih Senior Vice President

Internal Audit

CORPORATE SECRETARY

Bimo Budi Satriyo Senior Vice President

Corporate Secretary

HEAD OFFICE SENIOR MANAGERS

Achmad Djamalilleil Senior Manager Information

Technology Group

Agus Yulianto Senior Manager Environment

and Post Mining

Ari Karnalin Senior Manager Learning

and Assessment

Bachtiar Maggalatung Senior Manager Program

Management Office

Eko Marthias Senior Manager Risk

Management

Hari Widjajanto Senior Manager Corporate

Strategic Development Group

Hikmat Gunantara Senior Manager Legal and

Compliance

Ibrahim S. Corporate Social

Responsibility Group

M. Basir Senior Manager Supply Chain

Management Group

Pim Premono Senior Manager Marketing and

Customer Support Group

Rinanti Agnes Arsadjaja Senior Manager Operations

Controlling

Surianto Senior Manager Tokyo

Representative

Suharno Senior Manager Human

Resources Management

Syafri Isman Senior Manager Internal Audit

Service Delivery

Tuhiyat Senior Manager Accounting

and Budgeting

Tantiyo Budi Senior Manager Treasury and

Financial Engineering

BUSINESS UNIT EXECUTIVES

Denny Maulasa Senior Vice President of Nickel

Mining Business Unit

Winardi Senior Vice President of Gold

Mining Business Unit

Robinson Tampubolon Vice President of Logam Mulia

Precious Metals Refinery Unit

Lukman Alie Vice President of Bauxite Mining

Business Unit

Widyo Soesilo Vice President of Unit Geomin

BUSINESS UNITS

NICKEL MINING BUSINESS UNIT

Pomalaa Nickel Mine and Ferronickel Plant

Jl. Jend. Ahmad Yani No. 5

Pomalaa, Kolaka 93652,

Sulawesi Tenggara

Ph. (62-405) 310 171

Fax. (62-405) 310 833

North Maluku Operations Office

P. Buli, Maba, Halmahera Tengah

Ph. - Fax. (62-21) 781 2736

Makassar Office

Jl. Dr. Sam Ratulangi No. 60

Makassar 90122

Sulawesi Selatan

Ph. (62-411) 872 234, 871 648, 872 012

Fax. (62-411) 872 237



70


Name of Corporation

Perusahaan Perseroan (Persero) PT Aneka Tambang Tbk or PT Antam Tbk

Founded

July 5, 1968

Authorized Capital

Rp3,800 billion

Issued and Fully Paid Capital

Rp953.8 billion

Ownership

Government of the Republic of Indonesia 65%

Public 35%

Line of Business

A leading Indonesian diversified mining and minerals processing company,

Antam’s businesses are vertically intergrated from exploration and mining

through to processing, marketing, and trading.

Contact Us

PT ANTAM Tbk

Gedung Aneka Tambang

Jl. Letjen TB Simatupang No. 1, Lingkar Selatan, Tanjung Barat

Jakarta 12530

Indonesia

Tel : (62-21) 789-1234, 781 2635

Fax : (62--21) 789-1224

E-mail : [email protected]

For more information please visit our website www.antam.com.

Ternate OfficeJl. Batuangus No. 11Ternate 97727, Maluku UtaraPh. (62-921) 22221, 21686Fax. (62-921) 22819

GOLD MINING BUSINESS UNITPO Box 1, Pos NanggungBogor 16650, Jawa BaratPh. (62-251) 369 999Fax. (62-251) 681 543e-mail : [email protected]

LOGAM MULIA PRECIOUS METALS REFINERY BUSINESS UNITJl. Pemuda - Jl. Raya Bekasi Km. 18Pulogadung, Jakarta 13010Ph. (62-21) 475 7108Direct marketing (62-21) 478 65492Fax. (62-21) 475 0665, 296 3043e-mail: [email protected]@logammulia.com

BAUXITE MINING BUSINESS UNITJl. Bintan KijangTanjung Pinang 29151, Kepulauan RiauPh. (62-771) 61177, 61520Fax. (62-771) 61921

GEOMIN UNITJl. Pemuda No. 1Pulogadung, Jakarta 13210Ph. (62-21) 475.5380Fax (62-21) 475 9860e-mail : [email protected]

ANTAM TOKYO REPRESENTATIVE OFFICENew Aoyama Building, East 15071-1, Minami Aoyama, 1-ChomeMinato-ku, Tokyo 107-0062, JapanPh. (03-3423) 8031Fax. (03-3423) 8033

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