Our operations are subject to Indonesian laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection.

The State Ministry of Environment (Kementerian Negara Lingkungan Hidup) (“KLH”) is the Government agency responsible for implementing the Government’s environmental regulations and policies, in the field of environmental impact controls, and local government agencies supervise our mining operations. KLH reports directly to the President of the Republic of Indonesia and coordinates its activities with various Government agencies, including the Ministry of Energy and Mineral Resources.

We are committed to achieving high standards of environmental management of our coal mines. We have formulated environmental operating policies for several areas, including hydrocarbon management, hazardous waste management, use lifting of materials, air quality and water quality, among others. We also have formulated postmining recovery and rehabilitation plans to satisfy land designation, function and layout stipulated by the Government. Our policies aim to control acid mine drainage, sediment control in runoff water from mining areas, management of hydrocarbons and waste products.

We are responsible for monitoring hazardous waste on a daily basis. We have appointed licensed third parties to manage collection and storage of toxic and hazardous waste. Currently, we have engaged consultants and are working on implementing and getting certification on ISO 9001 Quality Management System and ISO 14001 Environmental Management Standard.