Berau Coal has introduced new technologies to enhance its operations and reduce the environmental impact of mining on local communities

‘Our key philosophy is to take care of the people’
PT BERAU COAL

Berau Coal has seen various incarnations since it was first established in 1983, but today it is the fourth-largest coal mining company in Indonesia, 90 per cent locally-owned, and one of the fastest-growing firms in the sector. In fact, the company is in the early stages of planning an initial public offering of 30 per cent of its shares through the Singapore Stock Exchange, with further developments to be announced by the end of this year.

With total geological resources of around 2.5 billion tons, equating to about 700 million tons of mineable coal, and a current maximum yearly production of 15 million tons, Berau Coal foresees a profitable future. “We are concentrating on exploration at the moment so that we can accurately measure our total resources; then we can plan ahead and hopefully push our limits up to 20 million tons a year by 2010,” says Bob Kamandanu, president director of the company.

Berau Coal has a wide range of satisfied customers across Asia, and its current planned year’s production of 12 million tons is already contracted almost in its entirety. As demand continues to outpace supply, Mr Kamandanu hopes to produce 13.5 million or even 14 million tons next year, making sure the company benefits from the current, relatively high, international coal price.

BOB KAMANDANU President Director of PT Berau Coal

Coal mining is traditionally a controversial activity in as much as it affects local communities and environments. In these aspects, Berau Coal has proved itself to be an industry leader, focusing strongly on corporate social responsibility and the well-being of the communities affected by its activities, earning a Social Empowerment Award from the Ministry of Social Welfare in June this year for its efforts.

“My key philosophy when we come into a new area is to take care of the people,” says Mr Kamandanu. Bearing in mind that the company’s main strategy for growth is based on increasing production, its priorities vis-à-vis the people in each area are creating awareness of and allaying fears about the potential impact of mining activities.

“We explain to people that we aim to minimise the nuisance factor and enhance social and economic activities. As well as encouraging farming in the areas, we check the environmental impact of the new development and provide a complete picture of mine closure, letting all concerned know what the area will be like once we are finished with mining activities there,” explains the president director.

Mr Kamandanu has also met with the regent of the Berau area to discuss the promotion of tourism with the aim of helping to create a sustainable industry that can directly improve the lives of local people for the long term.