PT Arutmin Indonesia Wisma Bakrie 2, Level 10 Jl. H.R. Rasuna Said Kav. B-2 Jakarta 12920 INDONESIA Phone. +62 21 57945678 Fax. +62 21 57945686

Natural Environment
Southeast Kalimantan Island has a typical equatorial climate of monsoon winds and alternating wet-dry seasons. The terrestrial ecosystem comprises lowland tropical rainforest, dryland farming fields, plantations, and household gardens.

Arutmin's natural surrounds are not pristine. They have experienced decades of human pressure, prior to Arutmin operations, by industry and community groups. Much rainforest has experienced exploitation or fire and is now at secondary stage. Poor soil quality has encouraged shifting cultivation over large areas. These activities have reduced water quality and therefore species diversity in many catchment areas.

Arutmin rehabilitation works at restoring the natural environment to a condition of high biodiversity, which in many cases means a condition superior to that which existed before Arutmin's arrival or operations. Revegetation work, for example, emphasises the reintroduction of native species which have disappeared from the area, alongside a complement of fruit trees to increase biodiversity and to provide a harvest crop for local populations.

Around or beyond the Arutmin area, Kalimantan houses a diverse array of mammals, reptiles, and birds. The company's detailed environment surveys have documented this species diversity. Animals native to the area include the clouded leopard, honey bear, macaque, Bornean gibbon, wild boar, squirrels, civet, langur, antelope, and mouse deer. The Asian Black Hornbill bird has important spiritual value for the indigenous Kenya, Kayan, and Ngaju Dayak peoples who paint the bird in their traditional motifs.

The area in which Arutmin operates is subject to profound social change well beyond the impact of the company. The drivers of this change are resource extraction by regional players, migration to Kalimantan, changing regional-national relations, and local politics.

A largely migrant population has flocked to Kalimantan in the last 2 decades to pursue opportunities in logging, plantations, and local mining. Settlements have been built near Arutmin to access the company's roads, community assistance, and possible work.

However, since resource extraction is neither traditional nor sustainable for local communities, they become trapped in a fragile existence. Arutmin's community work prioritises the development of sustainable economic activity for local communities. The company fosters local income-generating projects which will survive beyond the life of the mining operation.

Diverse local populations comprise Javanese, Banjarese, eastern Indonesians - mainly Buginese or Balinese - and indigenous Dayak people. Communities near mine sites are mainly Banjarese alongside a smaller number of indigenous Dayaks.

Traditional patterns of hierarchy and decision-making remain influential despite formal government structures. The variety of customs imported by different ethnic groups generates rich cultural diversity but efforts must be made to nurture all cultures in the area. Some traditions achieve widespread acceptance such as the Babalai ritual of harvest blessing.

The indigenous Dayak peoples are commonly classed into 7 broad groups: Iban, Western Groups, Punan, Barito Group, Northeastern Groups, Kayan, and Kenyah. The groups share a common spiritual code, the Kaharingan belief system. Arutmin has reached a land compensation agreement with a Dayak community whereby after mining, land will be returned in a condition ready for farming and under a form of community title. This unique and exciting development in the field of land compensation practices in Indonesia was negotiated by a local Arutmin employee who belongs to the Dayak community.

Community aspirations are constantly evolving. Arutmin retains open channels of communication with local communities to stay abreast of changing needs.

Rehabilitation
Arutmin Contemporaneous Mining and Rehabilitation Strategy, developed during nearly 2 decades of operation, restores land concurrent with mining rather than when mining is complete. The key elements of the strategy (see also The Mining Process) are as follows:

• Topsoil from cleared land is placed immediately on other areas already mined and reclaimed*.
  
  
• Minimal topsoil stockpiling occurs.
  
  
• Overburden is placed in just-mined areas so that these areas can immediately be reclaimed. As reclaimed areas reach their design profile they are graded and topsoil is spread on the surface, ready for replanting.
  
  
• Rapid-growing trees are planted to develop an environment in which rainforest species can be re-established. Some fruit trees are included in original plantings to improve habitat characteristics.
  
  
• Arutmin's strategy allows rehabilitation results in one area to be assessed over several years while mining proceeds in another area. Strategy improvements can therefore be applied to existing and future areas. International auditors assess that Arutmin's rehabilitation strategy has been fine-tuned "to such an extent that an area can be mined and restored within two years" (URS Corporation, March 2000).
  
  
• Since mining and rehabilitation occur together, mine closure work is underway and need not await the end of mining. This significantly reduces the environment and social dislocation often caused by mine closures. Closure will essentially comprise rehabilitation of final mining blocks. An overall closure framework will apply to the concession. This framework is only at a skeleton stage given the remaining length of mine-life and many possible changes in the natural or regulatory environment between now and closure.