Energy Consumption

PT TIMAH Tbk has long-term initiatives to reduce its energy consumption or generated emissions, such as:

  1. Solar PV installations in several operational units, including 3 MWP at the smelter and 93 kW at offshore mining vessels in 2023;
  2. Substitute fuel for gas for burner rotary dryer equipment in 2024;
  3. Utilize biochar as a reductor at the smelter unit in 2024;
  4. Utilize hydrogen for ship engines in 2025;
  5. Utilize co-fairing biomass at smelt starting from 2030;
  6.  Consistently using bio solar up to B80 in 2050;
  7. Electrification of mining equipment such as forklifts, bus, trucks, and shovels in 2050

Energy Consumption [F.7] [302-1]

To support its operational activities, the Company uses fuel energy that comes from biodiesel (B30) fuel reaching 80%, marine fuel oil (MFO) at 15%, and electricity (PLN) at 5%. Fuel is used to support mining activities and transportation, while electricity is used for smelting and lighting. Appropriate use of energy is crucial for the mining sector since efficient usage of energy can improve productivity and reduce operational costs. In order to improve the effectiveness of the extraction process of tin metal from tin ore, the Company has completed the high-tech smelting installation in TSL Ausmelt, and at the end of December 2022, the Company utilized Metallurgical Hot Commissioning to conduct a performance assessment on this Furnace, this furnace has been operating since March 2023 and produced 1,255 metric tons of Tin.

Since 2021, the Company has started to utilize New and Renewable Energy (NRE) solar cells at Air Jangkang Reclamation Village, Bangka, and Selinsing Reclamation Village, East Belitung. the Company also utilized biodiesel (B30) for several supporting instruments in its operational areas. The implementation of energy management patterns in the Company refers to the ISO 50001 certification - Energy Management System and refers to the Government Regulation No. 70 concerning Energy Conservation, the details of the management is as follows: [F.7]

Until the end of 2022, the Company recorded a total measurable energy savings of 74,943 GJ. This energy savings comes from optimizing the operation of Production Suction Vessels, Sea Exploration Drill Vessels Transport Vessels (Tug Boats and others), and several other energy efficiency initiatives. The energy efficiency initiatives carried out by the Company are as follows:

In 2019, due to the change in the energy source of the smelting facilities in the Metallurgical Unit from PLTD to PLN electricity, there was an increase in electricity consumption and conversely, there was a decrease in MFO consumption. Until the end of 2022, Muntok Metallurgical Unit has not used energy from renewable energy sources, other than PLN supply and fossil energy sources of MFO and the like. The recapitulation of the Company's energy consumption for the last 3 (three) years is as follows:

Intensity of Energy

The intensity of energy is calculated as the total energy required, both from electricity consumption and fuel consumption, for production per tonne of product. The calculation does not include the use of external energy from outside the company. The energy intensity value in 2022 reached 90.78 GJ/Tonne, which increased from 2021 to 76.48 GJ/Ton due to the decline in tin production. [302-3]

Energy Efficiency Efforts [POJK51. F.7] [302-4]

The Company is committed to consistently implementing energy efficiency efforts through:

  1. Optimizing the operation of main energy equipment both in terms of maintenance and operation;
  2. Carry out preventive maintenance of main energy equipment on a regular basis according to the schedule;
  3. Replacement of inefficient equipment;
  4. Monitoring fuel usage in real-time;
  5. Substituting energy sources to more efficient energy both in terms of cost and impact on the environment.

New and Renewable Energy (NRE) [F.7]

The Company is currently utilizing NRE of Biodiesel (B30) in 2022, the use of B30 as the main energy source reached 80% of the total energy consumption for mining operations, thus, reducing the GHG effect of 32,842 tCO2e. Another NRE source is the On-grid Solar PV which has been installed at Air Jangkang Reclamation Village, Bangka, and Selinsing Reclamation Village, East Belitung which were inaugurated at the end of 2022 with a capacity of 10 Kilo Watt Peak each (KWP). In 2022, the Company has carried out planning for the development of Solar PV NRE on the following main equipment:

  1. Installation of 3 MWP Solar Panel PV at Muntok Metallurgical Unit;
  2. Installation of 93 KWP Solar Panel PV at KIP with a hybrid system.

This is in line with the Company's vision of becoming an environmentally friendly world-class mining company, as proven in January 2023 with the signing of a collaboration Memorandum of Understanding (MoU) between PT TIMAH Tbk and PT Bukit Asam Tbk through its subsidiary PT Bukit Energi Investama to realize NRE development plans, especially Solar PV.