ENVIRONMENTAL AUDITING

Background

Potential coal in Indonesia, especially on the Borneo and Sumatera island are very abundant. Coal resources in Indonesia aprroximately 90.45 billion tons with  5.3 billion tons proven reserves, or about 9% of total world coal resources which reached 998 billion tons. Therefore, coal mining is one component of economic sustainability in Indonesia

Coal mining are activities with  high risk or significant impact to the environment. Coal mining, especially operate by open pit mining method have characteristics that change the landscape, removing pioneer vegetation, changing land contours, Stripping top layer soil which is rich by the fertile nutrients, causing air pollutants and produce liquid waste that can be acid. Therefore, coal mining should be managed by good mining practices principles which prioritizes preserving the environment and sustainable development.

Efforts to restore the function and capacity of the environment as a result of mining activities is through reclamation and closure activities after mining ends. Therefore, companies must have a Plan of Reclamation and Mine Closure Plan that must be submitted by the company to the ministers, governors or regents/mayors before the exploitation/production step begin.

To ensure the implementation of reclamation and mine closure, mining companies have to provide reclamation and Mine Closure assurance, which the number is based on the Plan of Mine Reclamation and Mine Closure Plan which has been approved by ministers, governors or regents/mayor. Supervision of the implementation of the Mine Reclamation and Mine Closing performed by ministers, governors and regents/mayors. To carry out supervisory duties, assigned functional Mine Inspector.

Acid Mine Drainage

Overburden is  rocks that must be removed, so the ore can be mined and processed to obtain the metal for commercial purposes. Many metals occur in nature in the sulfide minerals form. When the ore mined and rock covers that contain sulfides are exposed to the open air, then water, oxygen and bacteria reacts to produce solution of sulfuric acid. The acidic water can dissolve metals contained in the cover rocks and cause adverse environmental impacts to the water bodies if not managed properly. This process is known as acid mine drainage. Coal mining potential in the acidic water surrounding the mining area. Acid mine drainage is formed from rocks that contain minerals mine sulfide and oxygen through contact with air and water. Acid mine drainage are characterized by lower pH, increasing levels of sulphate, shed and bring the heavy metal content. Indications of acid mine drainage in coal mining area is the appearance of the precipitate or yellow-orange in mine water flow, the sulfur odor, and acidity of the soil.

Why was the audit topic important  

Water is an essential requirement for the living things. Living creatures will not survive if the need for clean water that pollutants free does not fulfill. River is one of the water resource that variety of life be it plants, animals, and humans depends, so the cleanliness of the river should be maintained.
Living creatures will always produce waste in their lives, things that can do is to reduce and manage it so it will not damage the surrounding environment. God created the river with its ability to self-purification of a wide range of pollutants, but the self-purification ability have a limit. If too many/heavy pollutants, the cleanliness of the river can not be returned. Therefore necessary to regulate both the number or the concentration of pollutants that can be thrown into the river.

Mining is one important support sector for the economy in Indonesia as a country with many natural resources but the mining activities also have a high risk or significant impact on the environment. therefore it is very important to have a rulles for environmental management of mining so the activities can be proceed without causing excessive and uncontrolled negative effects on the environment. One of the negative effects of coal mining is the emergence of acid mine drainage that requires the management system of acid mine water.

Above considerations, it is important to do the examination conducted to assess whether the environmental management of coal mining has been done and the controls and supervision system has adequate.

Audit Scope

Environmental management of Coal Mining on the mining license holder (IUP) and the Coal Mining Agreement Contractor (PKP2B)

Audit Targets

Examination of the specific objectives for the management of coal mining was conducted to assess whether:

1. Internal Control System of Coal Mining Environmental Management has been adequate;
2. Corporate Compliance in Environmental management of coal mining.

Audit Objectives

This examination aims to assess whether acid mine drainage that produced from mining activities have been well managed and whether the control and supervision conducted by the relevant agencies have been sufficient to control the management of acid mine drainage.

Audit Criteria

1) Law No. 4 Year 2009 regarding Mineral and Coal Mining:

(1) Article 95 : IUP and IUPK holders shall:

(A) apply the principles of good mining peactice;

(E) comply with the tolerance limit of environmental carrying capacity.

(2) Article 96 letter e states that the application of the rules of good mining practices, IUP and IUPK  holder shall implement the management of mines remaining from the mining activities in the form of solid, liquid, or gas to meet environmental quality standards before being discharged into the environment.

2) The Government Regulation Number 55 Year 2010 regarding Guidance and Supervision Management of Mineral and Coal Mining Article 13 paragraph (1) which states that the Minister supervising the implementation of the management of mining operations carried out by provincial and district/city governments in accordance with their authority;

3) Decree of the Minister of Mines and Energy No. 1211.K/008/M.PE/1995 dated July 17, 1995 regarding Prevention and Control of Environmental Pollution and the destruction of the General Mining Operations:

(1) Article 9:

(1)) Paragraph (1) : Run off water that flows on the surface of the open areas should be channeled through the channel are functioning properly to settling ponds before being discharged into public waters;

(2)) Paragraph (2) : settling ponds must be made in a location that is stable and well maintained and functioning properly.

(2) Article 10 states that water from mining operations before being discharged into public waters must be processed first so that it meets environmental quality standards in compliance with applicable laws.

4) Minister of Environment Decree No. 113 of 2003 regarding Waste Water Quality Standard for Enterprises and/or Coal Mining activity:

(1) Article 6 which states that every person in charge of business and/or coal mining activities shall process waste water from mining operations and waste water from processing / washing activity, so the quality of waste water that is discharged into the environment does not exceed waste water quality standards.

(2) Article 7 which states that every person in charge of business and/or coal mining activities required to manage water affected by mining activities through sedimentation ponds.

(3) Article 10 paragraph (2) which states that beside the obligation referred to in paragraph (1) person in charge of business and/or coal mining activities are required to:

(1)) Perform self-monitoring levels of waste water quality parameters, at least check the pH of the wastewater and record waste water volume daily;

(2)) Take and examine all levels of waste water quality parameters as specified in the annex to this decision periodically at least 1 (one) time in 1 (one) month conducted by the accredited laboratory;

Methodology

The methodology used in this investigation are as follows:

1) Checks completeness of documents related to the mining company's permit for environmental management

2) Examination of the management of surface water flow (drainage) in the mining area is adequate to avoid the mixing of fresh water with acid mine drainage.

3) Physical checks whether mining companies have had acid mine drainage treatment plant.

4) Check whether it has carried out monitoring of the quality and quantity of acid mine drainage at the compliance point and water bodies.

Findings and recommendations

From the examination it was found that the following matters:

1) Mining companies do not have a settling pond so that the acid mine drainage directly discharged into water bodies

2) Mining companies have had a settling pond, but has not been managed well. The treatment has not been done by adding lime/alum to reduce acid levels, the pool has been shallowing and monitoring is not done routinely and adequately

3) Settling pond capacity could not accommodate the amount of acid mine drainage.

4) settling pond should be stratified between ponds are not done properly, it cause the deposition process and the mixing of lime/alum will be imperfect

5) Mining companies do not have a wastewater discharge permit.

6) Inadequate drainage channel conditions so that the surface water and acid mine water was mixed

7) The mining company not  perform measurement of pH and debit daily

The Audit Board of the Republic of Indonesia recommends that the Minister of Energy and Mineral Resources :

1. Coordinate with the Minister of Internal Affair ordered the regent intended to give warning to the concerned Head of Department to enhance supervision over the management of acid mine drainage and provide a written warning to the IUP concerned to treat acid mine drainage according to the regulation.

2. Ordered the Director General of Minerals and Coal to improve guidance and supervision over the management of acid mine drainage PKP2B company and provide a written warning PKP2B Directors to make efforts to acid mine water treatment according to the regulation.

3. Improve the guidance and supervision of the implementation of general mining operations carried out by the Governor, Regent / Mayor;

4. Coordinate with the Minister of Internal Affair to ordered the Regents to instruct the Head of Department of Mines and Energy in their respective areas to increase field supervision, especially in the implementation and application of environmental management and good mining techniques by IUP and impose sanctions to the IUP that is not commplied.

Challenges and barriers

Human Resources The Audit Board of the Republic of Indonesia that is graduated from Environmental Engineering and Mining Engineering is very limited so that knowledge of environmental management techniques and principles of good mining management is still lacking.

Lessons learned

1) Strict implementation of sanctions against non-compliance of mining companies in managing the environment is an important factor to create a environmental management of mining according to the regulation

2) Supervision is an important factor in environmental management of mining.

3) Every mining company have to manage their activities according to good mining practice.

4) Planning of drainage channels should be well prepared so that the acid mine drainage can be directed to the treatment plant and will not be mixed with fresh water. Drainage channels in the mine area also aims to reduce the volume of fresh water entering the mined area. This technique can control the direction and volume of water and minimize the impact of acid mine drainage on the river as the receiving water body.

5) Overburden Reclamation must be done immedietly to reduce contact with water surface (fresh water) so that the formation of acid mine drainage can be minimized.