Icha Myrza
Feby Sallyanto
Rakhmat Dody Sudjatmiko
Yulli Dewi Indriasari
IPMI International Business School
Amelia Naim Indrajaya
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Since its establishment, PT. Vale Indonesia has pledged to reduce CO2 emissions by constructing a hydroelectric power plant, which commenced operations in 1979. In addition, starting in 2019, PT. Vale began employing electric boilers powered by hydropower for processing facility operations. With this invention, the usage of high-sulfur fuel oil (HSFO) is decreased by 67,047 barrels annually. The electric boiler utilized by PT Vale was also the first in Southeast Asia's processing sector.
PT Vale lowered GHG emissions by 330,688 tonnes of CO 2eq in 2022, to 1,640,387 tonnes of CO 2eq, or 17% less than in 2021 (1,971,075 tonnes of CO 2eq). Over five years, from 2018 to 2022, PT Vale reduced GHG emissions by 373,563 tons of CO2eq.
PT. Vale not only uses renewable energy for its operations, but it also helps local communities by organizing home waste management initiatives based on a circular economy, sorting economically useful garbage, and utilizing waste as an alternative fuel in the form of Refuse Derived Fuel (RDF).
In 2024, PT Vale announced a groundbreaking project in East Luwu, Indonesia, to develop a refuse-derived fuel (RDF) processing facility. This cutting-edge plant sought to transform municipal solid waste into sustainable energy, beginning construction early in the year and being operational within the same time frame.
The RDF facility not only lowered operational expenses connected with landfills and fuel usage, but it also helped to promote a circular economy by converting trash into a valuable energy resource. PT Vale worked closely with the Ministry of Environment and Forestry and local governments to guarantee coordinated efforts in support of national and global goals for zero waste in landfills and decreased carbon emissions.
Those innovations put PT Vale in a position as an environmentally responsible mining firm. The RDF facility, which processed 50 tons of trash and produced 14 tons of energy solutions, had a beneficial impact on the triple bottom line by addressing economic, environmental, and social sustainability. Recognized both locally and nationally, PT Vale's project drastically reduced carbon emissions, consistent with PT. Vale Indonesia's commitment to climate resilience and global climate change mitigation will result in zero waste going to landfills in 2025.
From Waste to Green Energy
As a leading mining company, PT. Vale Indonesia is committed to environmental stewardship. The Company's ambition goes beyond traditional business methods, as they aim not only to extract important resources but also to be at the forefront of environmental restoration. One of the company's goals is to continuously commit to restoring and maintaining the natural environment affected by our mining activities. They strive not only to strike a balance between resource extraction and environmental preservation but also to lead the industry in establishing new norms for sustainable mining methods. By seamlessly blending responsible mining operations with a deep dedication to nature, PT. Vale Indonesia sees a future in which economic growth and environmental vitality coexist peacefully.
The operational footprint of PT. Vale Indonesia includes Sorowako Village, Nikkel Village, Wasopunda Village, and Wawondula Village. This premier waste management facility, equipped with cutting-edge bio-drying technology, is designed to sort and treat waste with a daily capacity of over 50 tons. This innovative effort aligns with our commitment to environmental responsibility and community welfare since it directly serves the garbage of approximately 17,000 homes.
Should the project be successfully implemented, PT. Vale could expand this impactful model beyond the territories of its operation. PT. Vale can expand the beneficial outcomes of sustainable waste management to other areas, it is potentially that in the long term, it will be able to become one of the new income streams that emphasizes the use of renewable energy in the company.
PT. Vale Indonesia's comprehensive waste management process is designed not only for successful sorting but also to generate economic value from trash. Processing this waste is estimated to yield an annual value of 1.2 billion Rupiah, with the benefits going directly to the local community. This sustainable endeavor is expected to create more than 5,000 tons of alternative fuel each year, providing a significant resource to local businesses. Beyond waste reduction, this project demonstrates the company's commitment to environmental responsibility and societal welfare by promoting a circular economy that benefits both industry and the local population.
PT Vale Indonesia's waste-to-energy innovation represents a comprehensive commitment to sustainability. By converting waste into a useful energy resource, the firm not only improves operating efficiency but also actively contributes to larger environmental and social goals. This case study demonstrates mining businesses' revolutionary potential in promoting ethical and creative operations.
By pioneering such environmentally responsible activities, PT. Vale Indonesia demonstrates leadership in the industry, highlighting that economic success and environmental care are not incompatible. The spokesperson of Vale mentioned "This ground-breaking method demonstrates the company's commitment to negotiating the convergence of profitability and responsible resource management, providing a good example for the larger business community. PT. Vale Indonesia's waste-to-energy initiative shows the transformative potential of innovative thinking, demonstrating how firms can play a critical role in crafting a sustainable and successful future."
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Adriansyah Chaniago, Vice President Director
Widiya Kumoro, VP IT
Icha Myrza, Interviewer
PT Vale Indonesia Tbk is Indonesia's biggest nickel producer. The firm is a subsidiary of Vale, the world's second-largest mining company, with headquarters in Brazil. Vale Indonesia is a foreign investment business that discovers, mines, processes, and manufactures nickel matte, an intermediate product, from lateritic ores at its mining and processing facilities at Sorowako on the island of Sulawesi.