PTFI 2014 External Environmental Audit

In 2014, the seventh external environmental audit of PTFI was carried out by PT LAPI ITB, with the objective of evaluating PTFI’s compliance with national environmental laws, environmental-related government regulations and environmental standards. The audit also considered the adequacy of PTFI’s environmental management strategies to achieve best and feasible environmental management practices and the effectiveness of PTFI’s environmental management system in the actual implementation toward continuous improvement. The field portion of the audit was conducted in May 2014.

The executive summary of the audit and a matrix of the recommendations and PTFI’s responses are posted below. The response matrix will be updated quarterly.

PTFI 2011 External Environmental Audit

The PTFI 2011 External Environmental Audit was lead and conducted by experts from the Institute for Research and Community Services of the Bandung Institute of Technology in Bandung, Indonesia, supported by staff from the US based consulting firm MWH. The field portion of the audit was carried out in June 2011 and all key operational and support areas were addressed in relation to regulatory requirements and best management practices.

2008 MWH Audit

MWH (formerly Montgomery Watson Harza) was selected to conduct the 2008 External Environmental Audit. The External Environmental Audit consisted of an independent, professional, team-based evaluation focused on environmental considerations. The Audit team, consisting of MWH staff and Indonesian and international subcontractors, performed facility observations at the PTFI project site in Papua the week of November 9, 2008.

The Audit was conducted in general conformance with ISO 19011:2002 and the Audit Procedures Manual (APM) prepared specifically for this Audit. The Audit addressed all key operational areas and support facilities that comprise PTFI’s Papua operations, and reviewed PTFI’s general compliance with the key Indonesian government environmental requirements.

2005 Montgomery Watson Harza Audit

PTFI volunteered to conduct an external environmental audit every three years. External environmental audits have been performed in 1996, 1999, and 2002. Montgomery Watson Harza (MWH) was selected to perform the 2005 external environmental audit.

The field verification portion of the audit was independently conducted by MWH and a team of Indonesian and international subcontractors at PTFI headquarters in Jakarta and at the PTFI jobsite in Papua, between September 21 and October 6, 2005. The audit process was consistent with internationally recognized auditing protocols. At PTFI’s request to maintain transparency, several observers from the Indonesian regulatory community were invited to participate in the audit.

2002 Environmental Risk Assessment

Parametrix conducted an Environmental Risk Assessment in order to determine if there were any additional risks beyond those identified and approved as part of the 300K AMDAL (EIS) process. The work, conducted in the field at the mine site in Papua, Indonesia, is comprised of three integrated assessments encompassing more than 90 individual studies spanning five years.