We implement Environmental and Social Impact Assessments prior to undertaking greenfield or brownfield expansion projects. These assessments identify potentially affected stakeholders and their representatives, as well as potential impacts from the outset, and provide a framework for developing both stakeholder engagement and mitigation plans. Many of our operations use baseline assessment tools to help identify community needs and provide a baseline against which we can measure our performance over time. Our active mining sites have mine closure plans that specify measures for managing environmental impacts at the end of mine life, while our ongoing community investment programs aim to build community resilience and individual capacity for sustainability post-closure.
We are committed to respecting the human rights of community members and, when unavoidable, conducting community resettlement activities in alignment with international best practice. This commitment is reflected in our Social Performance and Human Rights Policy. We did not have any resettlement activities in 2020.
PT-FI completed its Environmental Impact Assessment (AMDAL) in 1997 in compliance with Government of Indonesian regulations and the company’s policies and practices on management of the environmental and social impacts of our operations. The AMDAL, approved by the Government of Indonesia, describes PT-FI’s management plans for environmental and social impacts. PT-FI’s Environmental and Community Affairs departments jointly compile data and program results and submit biannual Environmental Planning and Monitoring Reports to the Government of Indonesia.
Sedimentation Impact Mitigation
During 2020, PT-FI continued its collaboration with Indigenous Kamoro communities located along the coastal areas of eastern Mimika, in particular, Fanamo, Omawita and Otakwa. Some of the traditional waterways used by the Kamoro to access their traditional sources of livelihood have been impacted by the levee extension construction necessary to maintain the safety of our controlled riverine tailings system.
Acknowledging that sedimentation impact mitigation is a cross-departmental responsibility, PT-FI’s Sedimentation Task Force continued work with these communities as well as with key local government and religious institutions on our impact mitigation strategy.
Our multi-stakeholder approach in mitigating sedimentation impacts resulted in development of a land-water transportation program combined with economic development activities aligned with Kamoro culture and livelihoods. The land-water transportation program includes an integrated passenger boat and bus service with optimal routes and schedules determined through consultation with local community members and the local Mimika government. During Phase One of the program (from 2013 to 2018), PT-FI regularly engaged with the affected local communities in planning, implementing, monitoring and evaluating our social mitigation programs to address the impact of tailings and sedimentation.
Phase Two of the program, which began in 2019, continued with enhancements to the local land-water transportation system and added a focus on local economic development – vegetable and coconut farming and fisheries.
Program interventions throughout 2020 included:
Providing roundtrip boat service between Pomako and the PT-FI-constructed Omauga dock for the people from Manasari and Otakwa, including 3 return boat trips carrying approximately 18 passengers. Since the second week of March 2020, boat service was suspended due to COVID-19 outbreaks resulting in the Government of Mimika Regency prohibiting operation of mass transportation services from red zones (high intensity of active COVID-19 cases) to green zones (zero active COVID-19 cases) and vice versa.
Providing bus transportation with strict health protocols for five directly-impacted Kamoro villages to access their gardens and fishing grounds as well as markets in Timika; including during the year, there was a monthly average of 82 bus trips and 156 truck trips.
Continuation of coconut program assistance covering 200 hectares and 368 farmer groups, including distribution of approximately 26,100 coconut seedlings.
Continuation of vegetable program assistance, including seeds and fertilizer as well as help with marketing, was provided to 177 households and routine outreach assistance by local government staff every two weeks.
In October, PT-FI opened one grocery in both Manasari and Otakwa; these were part of the collaboration between PT-FI and the Mimika Government in opening the economic hub in the eastern Mimika Region. Operating groceries are expected to reduce regular travel by community members to Timika to purchase and sell their goods and produce. Total transactions through December 2020 was $14,800.
PT-FI, together with the local government and affected local communities, implements regular monitoring and evaluation to assess the effectiveness of our mitigation programs on impacted communities. However, due to COVID-19 outbreaks, there was only a limited number of monitoring and evaluation activities to program areas in 2020.
In collaboration with the local government, PT-FI supports the establishment and growth of an economic and transportation hub in Otakwa village located to the east of Timika. The hub will support an Integrated Center for Marine and Fishery Activities as well as an increase in coastal transportation access for Kamoro communities located east of the current network.
Please refer to the Communities and Economic Value Contributed sections of our website for additional information on Community and Economic Development programs in Indonesia.
Community Grievance Mechanisms
To support constructive engagement and resolution of issues that may arise, we maintain site-level grievance mechanisms where community members can share their questions, concerns and complaints outside of any other engagement forum. These community grievance mechanisms serve as an early warning system and help to manage and reduce potential risks by identifying and addressing problems before any potential escalation into larger conflicts.
Our community grievance mechanisms are available in local languages, tailored to local cultures and allow us to document and track issues and concerns raised by local community members and respond in a timely manner. Grievances typically are received by community engagement team members in the field through engagement at established company or community forums, in writing via physical drop boxes or via local telephone hotlines. Grievances then are reported to the site Community Grievance Officer, who relays the grievance to the relevant department for evaluation. Community engagement team members help investigate grievances and work with community members to acknowledge the grievance, address concerns, solve problems and mitigate or remedy impacts. For grievances with potentially high community impacts, senior management and applicable government authorities are engaged, as appropriate.
During 2020, our global operations recorded 140 community grievances in our web-based management system, mostly regarding community benefits, environmental concerns, health and safety, and land rights. This system allows us to track grievances, identify thematic trends, report resolutions and measure our performance.
In 2020, we completed a review of our global community grievance procedures against the UN Guiding Principles (UNGPs) effectiveness criteria. The ICMM’s updated good practice guidance on Handling and Resolving Local-level Concerns and Grievances, which together with input from community members and their representatives, will be incorporated into our Community Grievance Standard Operating Procedure. Process improvements include, but are not limited to, access accommodations for vulnerable groups, guidance on impact assessment and remedy, and establishment of a formal feedback loop to inform continuous improvement. These enhancements will be rolled out in 2021 along with improved management systems.
Below are examples of community grievances:
In Arizona, a local resident living on a primary transportation route to our Safford mine reported recurring speeding instances by our carriers in a 25 mph zone. Over the course of four years, from 2017 to 2020, Safford worked in partnership with its carriers to address these concerns. Mitigation began with direct engagement with specific carries to reinforce the importance of thoughtful and safety-focused driving behaviors. This included a presentation to carrier safety leads at our annual Carrier Safety Conference as well as direct engagement with Graham County leaders to troubleshoot to speeding concerns on this stretch of roadway. In early 2020, to increase awareness during COVID-19 related stay-at-home orders, a communication was shared with our North America carriers to encourage thoughtful, safe and resident-focused driving behaviors. This was followed by a site donation of two solar-powered speed radar signs to add an engineered control to the roadway. Since Safford’s donation of these signs, installed by Graham County’s Highway Department on both ends of the 25 mph zone in July 2020, no further grievances have been received regarding carrier speeding.
In 2020, El Abra received a grievance from in the Indigenous community of Taira regarding potential impacts to an archaeological site. El Abra mobilized an archaeologist to conduct an independent investigation. While a scratch was detected on a pipeline within a few meters of the archaeological site, there were no impacts to the archaeological site itself and no indication that El Abra or its contractors damaged the pipe while conducting a topographic survey using drones in the area. The results of the investigation were shared with the complainant and the grievance was closed.
At PT-FI in 2020, a few Amungme community members protested over perceived land impacts to highland areas related to the environmental and social impact assessment (AMDAL) being undertaken by PT-FI. Through the scheduled public consultation process, PT-FI engaged with these individuals, their Indigenous institution representatives and village heads representing the three highland Amungme villages to address their concerns, provide clarity and foster open and transparent communication regarding the AMDAL process. This included explaining that the AMDAL related to existing operational areas and no new land would be required in the highlands. The grievance was closed and the AMDAL process continued as planned.
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