Corporate Social Responsibility

Press Statement

In reference to Thomson Reuters' article titled "Greenpeace cut ties with Indonesian paper firm linked to deforestation" published on 17 May 2018

1 June 2018

"Further to GEAR's CSR press statement issued on 18 May 2018, the Group had since carried out an internal analysis using Landsat imagery for the period between 2013 to 2017. From the analysis, it was found that of the alleged 5,000 hectares of deforested area, approximately 2,942 hectares are logged over areas (areas approved for forestry plantations) of which 2,316 hectares were encroached by illegal loggers and illegal miners, 227 hectares were harvested by HRB and the remaining did not have any deforestation activities. The Group has since lodged reports to the relevant law enforcement agencies, including the Police and Forestry Division pertaining to the illegal logging and mining activities as well as taken active steps to increase security patrols.

As highlighted in GEAR’s annual report, the Group had also conducted harvesting activities in the production forest and sold acacia logs to third parties."

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18 May 2018

"Golden Energy and Resources Limited ("GEAR") and its subsidiaries ("Group") would like to clarify that its existing forestry business, PT Hutan Rindang Banua ("HRB") only became part of the Group following the completion of a reverse takeover in April 2015. GEAR is managed independently from the other business units under Sinar Mas and has no connections with PT Muara Sungai Landak.

To the best of GEAR's knowledge, 227 hectares of the Hutan Alam (logged over) area were cleared since April 2015 using a selective cutting process and followed by replantation to support the local community. This was in accordance with approval received in the form of Rencana Kerja Tahunan (yearly operational plan) from the Regional Forestry Division in South Kalimantan Province and Forestry regulations applicable in Indonesia.

HRB only sells logs from acacia trees that are part of its planted forestry assets. HRB's customers are third parties and the business does not supply any logs to Asia Pulp and Paper Group ("APP") and/or its affiliates."

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Community Development Programme

We have made substantial efforts to integrate with the local population in the vicinity where our mines are located, as we believe that these efforts are integral to the stability and development of our business.
As part of its community development programme initiative, we engage in activities aimed at fostering community relationship and empowering such communities, such as implementing various programmes to provide economic, technical, social, infrastructure, educational and healthcare assistance to the local communities.

We have provided the local communities with new employment opportunities by recruiting/employing and training local residents to work in fields that demand high skills, such as heavy equipment operators and drivers.

We also provide capital, technical, training and marketing support to assist local residents to set up small businesses, such as livestock farms, or seek employment in local industries.

Reclaimed land is also transferred back to the local communities for community development purposes.

We have also contributed to the social and cultural welfare of the local communities by establishing Islamic study groups in mosques and contributing the necessary facilities and materials, and collecting donations to organise religious celebrations and benefit orphans.
We perform public works development and maintenance, such as developing and constructing new wells, improving school facilities and infrastructure and providing school buses and repairing roads, bridges and public facilities (some of which were major roads and bridges connecting villages or functioning as the main route of activity).

To promote cultural values, we sponsor and participate in traditional events and social functions, such as Indonesia’s Independence Day celebrations.

We recognise the importance of education, and in 2011, we provided scholarships to 230 students from schools located in the province of South Kalimantan. In addition, we also distributed spectacles to students and teachers.

We had also arranged for free mass cleft lip surgery for children and adults from Jakarta and West Java in cooperation with Obor Berkat Indonesia, as well as providing various medicines for the West Sumatra Police.

We are committed to continuing to develop community relations by expanding its diverse CSR initiatives.

Environmental Conservation Programme

We are mindful that certain aspects of its mining operations may have an environmental impact on our surroundings. Therefore, with the view to conserve and preserve the surrounding development, we have made sustainable development an integral part of our CSR programme and have strived to implement environmental protection policies.

Our ECP initiatives include :
  • Designating an environment superintendent and other special officers to conduct daily monitoring of the environment, mine reclamation and rehabilitation and vegetation;
  • Reclaiming used land and thereafter developing cash crops, fish farms or recreational facilities;
  • Building a settling pond at the mining areas;
  • Treating water run-off from mining areas in settlement ponds;
  • Maintaining the pH stability of the water in the settling pond (pH of water in the settling pond ranges between 6 to 9);
  • Closely monitoring the water released from the settling ponds;
  • Providing workshops containing drainage systems for holding waste oils before disposal;
  • Cooperating with the sub-contractors to perform the management and storage for hazardous and toxic materials and waste;

  • Conducting daily and weekly inspections and monthly evaluations to minimise the production of mine waste and the size of disturbed areas;
  • Closely monitoring the water quality at rivers, ponds, wells and mine waste in the mining areas daily with monthly evaluations undertaken by the laboratory;
  • Performing air/emission and ambient and noise tests by the laboratory per semester;
  • Monitoring noise and dust levels and air quality at the mining areas and at intervals along haul roads;
  • Controlling coal dust by placing fixed water sprays at intervals around the coal stockpiles;
  • Monitoring the level of erosions at slopes and embankments in particular; and
  • Monitoring the acidity of overburden.