Health and Safety

Merdeka Copper Gold is fully committed to ensuring the safety and well-being of our workforce also the communities surrounding our operations. Our company consistently provides a safe and conducive working environment, in strict adherence to relevant laws and regulations. We have established an Occupational Health and Safety (OHS) Policy and implemented a comprehensive OHS system that encompasses procedures, implementation protocols, and performance monitoring. Merdeka’s implementation of the OHS Management is in accordance with the Mineral Mining Safety Management System as well as the internationally recognized ISO 45001:2018 standard.

One of the key guiding documents at Merdeka is the Health Safety and Environment Management System Manual. This manual outlines the minimum K3 standards that are applicable to all our mining projects and operations, encompassing all employees as well as business partners such as contractors, visitors, and other stakeholders. As per the manual, the Executive and Executive General Manager are responsible for formulating strategies and overseeing the OHS performance across all operational areas and mining projects based on extensive mapping and identification processes of high-risk tasks. Mitigation procedures to address risks, an integral component of our OHS management system, are outlined in the Collective Labor Agreement, which governs the relationship between workers and the company.

Merdeka has developed a risk management framework that includes conducting risk assessments for various processes, including planning, activities related to projects, operations, and departments, as well as change management. These assessments aim to identify potential impacts on our business and work objectives, while also providing us with opportunities for improvement and the implementation of effective mitigation measures.

To ensure that incidents are handled appropriately and serve as valuable lessons for the future, Merdeka adheres to incident management standards enabling us to adopt a consistent approach to defining, communicating, and managing incidents.

The Merdeka K3 Division conducts periodic evaluations of our OHS risk management practices, focusing on addressing significant impacts such as work accidents, investigating incidents, and promptly reporting them to the appropriate law enforcement agencies.

Additionally, Merdeka has established a Crisis Management Team (CMT) to effectively respond to significant incidents that may affect our employees, communities, operations, environment, finances, and investments. The CMT comprises a core team consisting of the CEO, COO, President Director, CMT Coordinator, and other key members, including General Managers, representatives from HRD, External Affairs, HSE, Legal, Finance, as well as external experts. The roles and responsibilities of the CMT are outlined in our Crisis Management Response Plan. Supporting the CMT are Emergency Management Teams (EMT) and Field Response Teams (FRT). The FRT, also known as the Emergency Response Team (ERT), are field-based teams responsible for providing initial response to protect life, property, and the environment during incidents. The FRT/ERT’s operational needs are coordinated by the EMTs, which are present in every mining operation and project and collaborate with the CMT and other relevant parties.

In 2022, the CMT conducted an earthquake preparedness exercise with a scenario simulating a magnitude 7.7 earthquake. During the same year, PT Bumi Suksesindo, the operator of the Tujuh Bukit Gold Mine, dispatched an ERT team and logistical support to Cianjur, West Java, which had been struck by an earthquake. This team, which has frequently participated in various humanitarian missions, worked alongside the disaster preparedness team under the coordination of the Ministry of Energy and Mineral Resources (ESDM) from November 23 to December 2, 2022.

Chart 1. Crisis Management Team Structure.

Emergency Response Team training at the Tujuh Bukit Gold Mine.

Merdeka has established an OHS Committee at every mining operation and project, including the Jakarta headquarters. The committee members come from various departments, with the Head of Mining Engineering serving as the chairman. Across all its mining operations and projects, Merdeka consistently promotes the OHS culture, selects, and evaluates contractor commitments to OHS, from the selection process to post-job completion. Additionally, Merdeka organizes various training sessions and audits for both the company and contractors.

To ensure the well-being of employees, Merdeka conducts annual medical check-ups for all employees of the Group and contractor employees. Merdeka has also developed a Medical Emergency Response Plan (MERP) and in 2022 has engaged a third party to provide medical evacuation and emergency medical management across all of Merdeka’s mining operations and projects. Various webinars featuring health experts as speakers are organized to raise health awareness. Health facilities, including clinics and health posts staffed with doctors and paramedics, are provided throughout Merdeka’s mining operations and projects.

During the pandemic, to reduce the risk of COVID-19 transmission in the workplace, Merdeka has implemented control measures such as access restrictions, pre-screening for symptoms and travel history, COVID-19 prevention education programs, regular health and hygiene checks, and mask usage. In collaboration with local governments, these COVID-19 prevention efforts are carried out in all operational areas and mining projects, which also participate in the “Increasing COVID-19 Prevention in and through the Workplace” program organized by the International Labour Organization (ILO).

Table 1. Number of clinics and health services at Merdeka mining operations and projects.

Merdeka consistently strives to minimize health and safety risks. To gather information and analyze high-risk activities, Merdeka implements the Critical Risk Management (CRM) Program, considering industry statistics, historical risk and incident data, and safety management system audits. Merdeka also carries out the TAHAN (Tidak Aman Hentikan Laporkan Amankan) program for workers at all management levels to reduce risks and hazards in the workplace. Through TAHAN, workers are encouraged to stop work and alert others if they identify unsafe behaviors, engage in positive communication to agree on the safest ways to complete tasks, and raise awareness among other workers about potential hazards. Every three months, Merdeka awards the top three non-supervisory employees who demonstrate exemplary adherence to TAHAN across all operational areas and mining projects.

Increasing HSE Culture

HSE Culture Implementation Training for 972 employees, totaling 173,971 training hours, and for 2,317 contractors, totaling 2,614 training hours.
Performance evaluation of HSE conducted for 499 contractors.
Certified ISO 45001:2018 HSE Management System surveillance audits conducted by independent auditors at Tujuh Bukit Gold Mine, Wetar Copper Mine, Pani Gold Project, PT Merdeka Mining Servis, PT Merdeka Copper Gold Tbk, AIM Project (Acid, Iron, Metal) managed by PT Merdeka Tsingshan Indonesia, and Konawe Nickel Project (BSI-CSI).
Routine HSE audits conducted for mining operation and project management companies and contractors.
Independent third-party Critical Risk Standard (CRS) audits covering traffic management, working at height, and tire management conducted at Tujuh Bukit Gold Mine, Wetar Copper Mine, and AIM Project managed by PT Merdeka Tsingshan Indonesia.
Merdeka’s HSE Division, along with HSE teams in operational areas and mining projects, conducted audits of all contractors based on the HSE Survey Contractor List Document.
All managers and supervisors conducted Critical Risk Management verifications at least twice a month since July 2022.
Conducted training for the Crisis Management Team with a scenario of a magnitude 7.7 earthquake.

Worker Health

Organized webinars and consultations with invited health experts.
Conducted annual medical check-ups for 100% of Merdeka Group employees and 4,104 contractor employees.
Implemented a COVID-19 booster vaccination program for all employees and 4,104 contractor employees throughout 2022.

Worker Safety

Zero fatalities from work accidents.
TRIFR: 0.97, LTIFR: 0.11.
Implemented fatigue detection cameras to identify fatigue among heavy truck operators.
Implemented the TAHAN program across all sites and awarded the top three best TAHAN performers every quarter.
PT Bumi Suksesindo (BSI) hosted the 19th Indonesian Fire and Rescue Challenge (IFRC), participated by 24 teams representing various companies in Indonesia, including PT Merdeka Copper Gold Tbk as the parent company of BSI. The event took place in Banyuwangi, East Java, from November 14 to 22, 2022. IFRC serves as a platform for sharing knowledge and experiences in the field of rescue operations.