Significance

Energy is one of the key factors which drives global economic development. The energy markets around the world are currently experiencing challenges in balancing supply and demand since the rapid rise of energy demand. This resulted in the price fluctuation of operating costs across various industries as well as the Company’s businesses. Therefore, the Company emphasizes on maximizing the efficiency of energy management.

Management Approach

The Company aims to maximize the energy efficiency by integrating an energy management plan with the GHG emissions management strategy. However, the energy consumption patterns in a particular business are different from the others; for example, open-pit mining is prevalent in Indonesia, while mining in Australia is carried out underground. This can explain some of the differences in energy consumption and leads to different energy conservation activities as follows:

· Open-pit mining business: Most of the energy consumption is in the overburden removal and coal hauling activities. Accordingly, the energy conservation projects focus on improving the energy efficiency of these transportation systems. For instance, change of haul truck to conveyor belt and improvement of transportation routes for maximum efficiency of fuel consumption.

· Underground mining business: Most energy is consumed for coal extraction with heavy machines and coal transportation by conveyor belts. Therefore, the energy conservation projects focus on enhancing the efficiency of electricity consumption, for example, the use of automatic control systems to calculate optimal speed in coal cutting and conveying, and regular machine inspections to maintain equipment efficiency.

· Thermal power business: Most of the energy is consumed in the boiler to generate electricity. The Company accordingly emphasizes the efficiency improvement by properly balancing the proportion of electricity and heat production in order to meet the changing customer demand across different seasons.

· Renewable power and solar rooftop solution business: Most of the energy is primarily consumed for transportation activities. The Company therefore places emphasis upon the proper traveling plan to maximize fuel consumption efficiency.