GOOD CORPORATE GOVERNANCE CORPORATE SOCIAL RESPONSIBILITY

guidance regarding health and safety and environmental sustainability that is focused on communities surrounding the mine location. The programs which are implemented by the Company include community relationship development, society empowerment through job creations, infrastructure development and allocation of aid for natural disasters. The performed environmental management, monitoring and reporting includes:  Built settling pond at the mine area  Maintaining pH stability of the water in the settling pond pH of water in the settling pond is between 6 to 9,  Cooperation with the sub contractors to perform the management and storage for Hazardous and Toxic Waste B3 such as used oil, gemuk, used batteries and used machinery cotton waste.  Efforts to minimize the mine waste that can pollute the environment by conducting daily and weekly inspections and monthly evaluations.  Daily monitoring of water quality at the mine location.  Monthly monitoring of water quality at mine location by the Lab.  Perform airemission and ambient and noise tests by the Lab per semester.  Monitoring noise and dust around the mine site.  Monitoring the level of erosion.  Monitor slopes and embankments.  Monitoring the acidity of overburden. The Company is committed to continue developing community relations through the development programs that focus on health and education and technical assistance as well as jobs creation for the local people.

16. ENVIRONMENTAL IMPACT ASSESSMENT EIA

The operations of mineral and coal mining which is the mining business activities beyond the geothermal, petroleum and natural gas, and ground water has an important role in providing real added value to national economic growth and sustainable regional development. The mining a collection of minerals in the form of ores or aggregates, beyond geothermal, petroleum and natural gas, and ground water. Coal mining is the mining of carbon deposits which are contained within the earth, including solid bitumen, peat moss and asphalt aggregates. In the Act it is stated that to obtain a Mining Permit IUP for Exploration Article 39 and the Special Mining Permit IUPK Article 78 one of the requirements is to conduct the EIA. The State Ministry of Environment KLH is the government agency that serves to implement and supervise the implementation of government policy in the environmental field, in the environmental impact control, and supervise the mining operations of the Company by local government agency. KLH is directly under the President and in coordination with other Agencies or Departments of the Government including the Ministry of Energy and Mineral Resources ESDM in the case of mining. In the Company’s organization, the party who is responsible for the environmental management is the Environment Superintendent who is part of the Department of Technical Services and Engineering, and assisted by the Head of Mining Engineering. In addition, the Company has a special officer to perform daily monitoring of the environment, rehabilitation and mine vegetations. The Company oversees the mining activities quarterly and biannual surveillance by the Government authorities. The Company has obtained the approval of the EIA. The employees of environment division monitor the Companys daily operations activities and report reclamation of the areas which are formerly mined to be filled and replanted by using the services of local companies, so the Company also