3rd Governor’s Climate and Forests Taskforce meeting 2010 – Banda aceh May 2010 PT. KELIAN EQUATORIAL MINING MINE CLOSURE....working together for sustainable solution...

3rd Governor’s Climate and Forests Taskforce meeting 2010 – Banda aceh May 2010 KEM KEM Site Location

3rd Governor’s Climate and Forests Taskforce meeting 2010 – Banda aceh May 2010 Polishing Pond POST-235 Namuk Lingau Plateau Upper Nakan Ex-Pit Wetland Lower Nakan KEM Contract of Work/Lease Area – 6750Ha

3rd Governor’s Climate and Forests Taskforce meeting 2010 – Banda aceh May 2010 KEM Summary KEM operations in accordance with 1985 Contract of Work (CoW) and Pinjam Pakai agreement with Dept of Forestry. KEM commenced production in 1992 KEM ceased mining activities in May 2003 and ceased processing of stockpiles in February 2005 Reclamation and rehabilitation activities for mine closure completed in KEM will continue monitoring programs until closure criteria is achieved and CoW relinquished– expected by 2013 Post 2013 monitoring will continue by PT Hutan Lindung Kelian Lestari – funded through trust fund

3rd Governor’s Climate and Forests Taskforce meeting 2010 – Banda aceh May 2010 Closure Planning & Preparation In 1998 KEM developed Closure Planning Guidelines which were used to then develop the mine closure planning process In 1999 a Mine Closure Steering Committee (MCSC) was established to set the direction for the development of the final KEM Mine Closure Plan. The final meeting of the MCSC was held in June 2003 A number of technical, community and employee surveys were undertaken to gather relevant information to assist in the mine closure planning process

3rd Governor’s Climate and Forests Taskforce meeting 2010 – Banda aceh May 2010 MCSC The committee was co-chaired by the KEM President Director and Bupati Kutai Barat MCSC membership comprised representatives from government (local, provincial & central), communities, NGOs, universities and KEM. MCSC operated under an agreed Charter and administration was conducted by a Secretariat.

3rd Governor’s Climate and Forests Taskforce meeting 2010 – Banda aceh May 2010 Govt.KEM/RT Representatives from Stakeholders 1.Dams2.Environment3.Site&Assets4.ComDev Working Groups Secretariat Mine Closure Steering Committee (MCSC) CommunityUniversities

3rd Governor’s Climate and Forests Taskforce meeting 2010 – Banda aceh May 2010 MCSC Process Consultation with all stakeholders Working groups established for: –Dams –Environment –Site assets –Community 2-way information Decisions made through consensus Conflict resolution Representatives MCSC 1234 Working Groups Secretariat

3rd Governor’s Climate and Forests Taskforce meeting 2010 – Banda aceh May 2010 PROPOSED PROTECTION FOREST AREA – 6750Ha

3rd Governor’s Climate and Forests Taskforce meeting 2010 – Banda aceh May 2010 Post Closure Commitments Monitoring – surface water quality, groundwater quality, rehabilitation succession, fauna succession, geotechnical stability, employee and community welfare Maintenance – permanent structures, wetlands, rehabilitation Security – permanent structures, forest protection Beneficial uses – in accordance with forest protection plan (perda)

3rd Governor’s Climate and Forests Taskforce meeting 2010 – Banda aceh May 2010 Post Closure Institutions PT Hutan Lindung Kelian Lestari (HLKL) established to act as vehicle for long term monitoring, maintenance & protection of site Yayasan Anum Lio (community foundation) Funding for institutions through trust funds –Long term Monitoring&Maintenance US$11m –YAL US$2.4m Board of trustees from stakeholders