Sustainability Report 2018

2018
Sustainability Report
RESOURCES
M E M B E R O F A S T R A
CONTINUOUS
IMPROVEMENT FOR
FUTURE GROWTH
PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018 i

CONTENTS
37
CONTINUOUS IMPROVEMENT 1
FOR FUTURE GROWTH
ABOUT THIS REPORT 2
MESSAGE FROM THE PRESIDENT 4
OUR APPROACH
DIRECTOR TO MANAGING
SUSTAINABILITY AND
8 RESULTS ACHIEVED 2018
ECONOMIC AND FISCAL BENEFITS 40
SUSTAINABILITY
ENVIRONMENTAL COMPLIANCE 44
PERFORMANCE 2018
DISPOSAL OF TAILINGS 46
AT A GLANCE
DISPOSAL OF WASTE ROCK 50
MANAGEMENT OF HAZARDOUS 53
9 INDUSTRIAL WASTES
SITE WATER MANAGEMENT 54
ABOUT THE COMPANY SITE REHABILITATION 60
PT AGINCOURT RESOURCES 12 MINE CLOSURE 62
THE MARTABE GOLD MINE 13 PROTECTION OF BIODIVERSITY 63
ORGANISATIONAL AND 21 HEALTH AND SAFETY 65

GOVERNANCE ASPECTS
LOCAL AND NATIONAL EMPLOYMENT 71
STAKEHOLDER ENGAGEMENT 29
GENDER DIVERSITY 72

EMPLOYEE DEVELOPMENT 73
33 COMMUNITY DEVELOPMENT 74
OUR LOCAL
COMMUNITIES
ii PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

82 87
SUSTAINABILITY APPENDICES
MILESTONES THE PROCESS APPLIED FOR 88
DEFINING REPORT CONTENT
85 GRI STANDARDS PERFORMANCE

INDICATOR DATA TABLES
93
LOOKING FORWARD GRI STANDARDS REFERENCE INDEX 106

EXTERNAL ASSURANCE 112
GLOSSARY 114
PTAR SUSTAINABILITY REPORT 117
FEEDBACK FORM
PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018 iii

A dump truck on
route to Ramba
Joring Pit.
iv PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

CONTINUOUS
IMPROVEMENT FOR
FUTURE GROWTH
[102-16]
Since 2013, the Company has implemented its continuous

improvement process called the Martabe Improvement Program
(MIP). The program has been very successful over the years, primarily
measured by increased production and reduced unit costs. During
this period we have increased our mill production from 3.6 million
tonnes per year (280,000 ounces of gold) to 5.6 million tonnes per year
(412,200 ounces of gold) and reduced All-in Sustaining Cost (AISC)
from $799 per ounce to $367 per ounce, representing a 54% reduction.
This remarkable outcome has been achieved without compromising
other important operational outcomes such as safety and protection of
the environment.
A more efficient operation provides a platform to identify further

possible improvements in the business. We are well positioned to
exploit these opportunities for future growth. The exploration program
continues to be a strong and successful investment in discovering
more gold. We are also commencing a pre-feasibility study on options
to treat sulphide ore, effectively to increase the life of the mine.
Economic performance, alongside environmental and social, is one

of the three pillars of sustainable development. The improvements
in efficiency delivered by the Martabe Improvement Program
directly support sustainable development by maximising resource
utilization and extending mine life, and will provide greater benefits
over additional years for all key stakeholders, including investors,
employees, government and local communities.
VISION
To become a sustainable world-class operation delivering first-quartile
performance in the gold industry.
MISSION
To develop a long-term sustainable business generating positive
outcomes for all stakeholders.
CORE VALUES
Success at PTAR is driven by our people who live by our GREAT values:
Growth and added value - for all our stakeholders.
Respect - for people, culture, and stakeholders.
Excellence - through energy, enthusiasm, and commitment.
Action - delivery and doing what we say we are going to do.
Transparency - openness, listening, engagement, honesty.
PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018 1

ABOUT THIS REPORT
[102-51] [102-52] [102-54]1
This report is the fifth annual sustainability report reporting and represent best practice for
for PT Agincourt Resources (PTAR), owner and organisations reporting on the economic,
operator of the Martabe Gold Mine in Sumatra, environmental and social impacts resulting from
Indonesia. The Martabe Gold Mine is located their activities and how they are being managed.
close to communities, agriculture, waterways and The period covered by this report is the 2018
forests, and operations at the mine potentially calendar year (the most recent report previously
impact a range of stakeholders, most important of addressed the 2017 calendar year).
which are local communities. These communities
will continue long after mine closure and the In its sustainability reporting, the Company
successful implementation of sustainable endeavours to meet the GRI reporting principles,
development at Martabe Gold Mine is therefore being:
key to the Company’s social license to operate.
Accuracy.
Sustainable development is often defined as Balance.

development that meets the needs of the present Clarity.
without compromising the ability of future
Comparability.
generations to meet their own needs2 and has
become widely accepted as a key guiding principle Reliability.
for long-term global development. It has three
Timeliness.
key aspects or pillars, being environmental, social
and economic performance. The focus of this
In addition, the Company aims to make the reports
sustainability report is therefore the significant
interesting and accessible for the majority of its
economic, environmental and social impacts
stakeholders, who may not necessarily possess
associated with operations at the Martabe Gold
familiarity with the way in which mines operate
Mine.
and the management of associated potential
environmental and social impacts.
This report has been prepared in accordance with
the GRI Standards: Core option, produced by the
This report comprises seven main sections and
Global Reporting Initiative (GRI), an international
five appendices, the purpose and content of which
standards organisation.3 The GRI Standards
are summarised overleaf.
are the first global standards for sustainability
1.

The reference codes shown here and under other section headings indicate the GRI Standard Disclosures addressed by each section
(see Appendix 3 for more information).
2.
World Commission on Environment (1987)
3.
https://www.globalreporting.org/standards
2 PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

GUIDE TO THE FOLLOWING SECTIONS IN THIS REPORT
Section Purpose
Message from The President Director To clearly communicate the Company’s commitment to sustainable
development and its principles and goals in this regard. To highlight
sustainable development performance in 2018 and expectations for the
coming years.
Sustainability Performance at a Glance Key Performance Indicators (KPIs) that provide an overview of the
Company’s progress in managing selected aspects of sustainability in
2018.
About the Company Information about the Company that provides context for understanding
the sustainable management results documented in the report,
including organisational and operational profiles, strategy for managing
sustainability, approach to impact assessment, corporate governance,
and stakeholder engagement.
Our Local Communities An introduction to the history, culture and socioeconomic status of the
local communities around the Martabe Gold Mine, key stakeholders in the
Company’s implementation of sustainable development.
Sustainability Milestones PTAR has been managing for sustainability since project
commencement. This section provides an overview of sustainability
milestones year by year, as a backdrop to understanding the sustainability
results for 2018.
PTAR’s Approach to Managing A description of general principles and practices applied by the Company
Sustainability and Results Achieved in the management of sustainability and discussion of the results
achieved in 2018.
Looking Forward Medium-term objectives and goals related to management of sustainable

development by the Company.
Appendix One Explanation of the way in which the scope, content and boundaries of this
report were established to meet the requirements of the GRI Standards.
Appendix Two Presentation of a GRI Standard data table addressing identified material
aspects or topics for the Martabe Gold Mine.
Appendix Three Cross-referencing the contents of this report against GRI General
Standard Disclosures and Topic-specific Standard Disclosures to indicate
conformance with GRI reporting requirements.
Appendix Four Independence assurance statement which provide confirmation that

PT Agincourt Resources Sustainability Report 2018 had been prepared
in accordance with GRI Standard: Core Option.
Appendix Five A glossary aimed at making sure that all readers can understand report
content irrespective of technical background or familiarity with mining.
PTAR Sustainability Report Feedback Providing readers with a form that facilitates feedback on this report.
Form

MESSAGE FROM THE PRESIDENT
DIRECTOR
[102-14]
MULIADY SUTIO
President Director

On behalf of the Board of Directors, I am pleased Uluala deposit was approved. An additional 4.6
to introduce the 2018 PTAR Sustainability Report, hectares of disturbed area was rehabilitated,
which marks five years of annual sustainability increasing total area rehabilitated to 18.3
reporting by our Company. The main purpose hectares. Finally, Martabe received a Pratama
of these reports is to provide our stakeholders (bronze) award under the ESDM1 environmental
with a balanced and accurate account of how management assessment program for mining
well the Company is implementing sustainable operations.
development. Specifically, how well we are
managing the environmental, social and
Social Performance
economic impacts associated with operation
of the Martabe Gold Mine. The Board of There is no operational outcome at Martabe more
Directors recognises that our performance in important than worker safety, and the Company’s
managing these aspects is key to maintaining goal in this regard is the elimination of workplace
the Company’s social license to operate and accidents. In 2018, our efforts were rewarded
safeguarding opportunities for future growth of with the achievement of zero lost time injuries
our business. across the entire site workforce, resulting in a
Lost Time Injury Frequency Rate (LTIFR) of zero, a
I encourage all interested stakeholders to safety performance equivalent to the best across
read this report in full, but I also will take the the mining industry internationally. To support
opportunity to highlight here some of our key further reductions in safety risk, we launched a
achievements in managing for sustainability in new program addressing major safety hazards,
2018. I have based this around the three pillars of called the Critical Controls Program.
sustainable development, being environmental,
social and economic performance, as follows. The Company maintained an active community
development program in 2018, ensuring that local
stakeholders continued to benefit directly from
Environmental Performance operation of the mine. A total of $1.25 million
The Martabe Gold Mine’s strong environmental was provided in support of programs addressing
record was maintained in 2018. No significant health, education, local business development
environmental incidents were recorded. and public infrastructure improvements. In
Discharge of treated water from the Water addition, the Company purchased goods and
Polishing Plant (WPP) to the Batangtoru River services locally to the value of $11.4 million.
remained fully compliant with permit conditions
and regulatory limits. This maintains a continuous The Company’s commitment to providing local
record of compliance since commencement communities with significant opportunities for
of operations, a result that can be accurately employment at Martabe was maintained with
described as meeting industry best-practice. 74% of employees at Martabe Gold Mine being
An Amdal Addendum addressing a range of local.
operational improvements and mining of the Tor
1.
Ministry of Energy and Mineral Resources
Economic Performance Looking Forward
The operational performance of the Martabe Gold We hope that the information contained in this
Mine in 2018 was outstanding, with benchmarks report meets the needs of our stakeholders,
being set across key operating metrics such as and we encourage suggestions as to how
gold produced and All-in Sustaining Cost (AISC). we can improve sustainability reporting
Exceptional financial results for the year in turn (there is a feedback form at the end of this
supported significant financial contributions to report). Our goal is ongoing improvement in
our stakeholders. In addition to the community our management of sustainability outcomes.
development funding and support for local Specifically, for 2019, we are expecting
businesses already mentioned, this included tax significant improvements in our planning for
and royalty payments to government amounting biodiversity protection, tailings management,
to $126 million and employee wages and benefits community development and occupational
amounting to $29 million. safety. I look forward to reporting on these
developments in the 2019 Sustainability Report.
2018 was another excellent year for exploration
at Martabe, resulting in considerable upgrades
to the classification of Mineral Resources for
the mine and the identification of high grade
sulphide mineralisation. These results support
opportunities for increased mine life, with
potential benefits for all key stakeholders.
Jakarta, October 2019
MULIADY SUTIO
President Director

Aerial view of rice paddies
in Sipenggeng Village
being farmed under a
program supported
by PTAR aimed at
improving paddy
productivity.

SUSTAINABILITY PERFORMANCE
2018 AT A GLANCE
ECONOMIC AND SOCIAL
Tax and Royalty Payments to Government Locals Employed at the Martabe Gold Mine
US$77.84M 1,970
US$126.4 million 2017 1,945 People 2017
Wages and Benefits to PTAR Employees % Local Employment

74%
US$29 million US$28.5M
2017 74% 2017
Provision of Goods and Services by Local Community Development Investments

Contractors and Suppliers
US$20.7M US$1.72M
US$11.4 million 2017 US$1.25 million 2017
ENVIRONMENT SAFETY
Numbers of Days Discharging Water to the Lost Time Injuries
Batangtoru River
333 days 297 days

2017 0 1
2017
Compliance with Discharge Permit LTIFR1
100% 100%
2017 0.00 0.15
2017
ESDM Environmental Management Assessment SMKP Minerba Audit Score2

for Mines
PRATAMA
PRATAMA (Bronze)
(Bronze)
2017
97% 93%
2017
Seedlings Planted Attendance at Safety Training Courses
3,640 2,939
2017 14,000 hours 15,000 hours
2017
1.
Lost Time Injury Frequency rate (per one million man-hours).
2.
SMKP Minerba is the government standard for mine safety management systems.

ABOUT THE COMPANY

View of the
Martabe Gold
Mine.

ABOUT THE COMPANY
PT AGINCOURT RESOURCES
[102-1] [102-2] [102-3] [102-5] [102-7]
PT Agincourt Resources is an Indonesian mining At the close of 2018, PTAR employed 814
company engaged in mineral exploration and the permanent and contract employees, 779 based
mining and processing of gold and silver. The at the Martabe Gold Mine and 35 based at
Company’s sole operating site is the Martabe the office in Jakarta. All national employees
Gold Mine in Sumatra. Corporate functions are (98% of total) are included under a Collective
managed from a headquarters in Jakarta. Labour Agreement (CLA). An additional 1,833
contractors were employed at the mine.
PTAR’s majority shareholder (95%) is PT. Danusa The Company is committed to maximising
Tambang Nusantara, owned by PT. United Tractors employment opportunities at the mine for local
Tbk (60%) and PT. Pamapersada Nusantara communities, and during 2018 over 74% of the
(40%). The remaining 5% of shares is owned by total workforce was employed locally.
the Governments of South Tapanuli Regency and
North Sumatra Province through ownership of PT
Artha Nugraha Agung.
Scale of the Organisation in 2018
Total Number of Direct Employees 814
Total Number of Contractor Employees 1833
Total Workforce 2,647
Gold Poured 410,387 oz (12,764 kg)
Silver Poured 2,895,380 oz (90,056 kg)
Total Sales US$ 574 million
Gold US$ 522 million
Silver US$ 52 million
Total Capitalisation US$ 579 million

ABOUT THE COMPANY
THE MARTABE GOLD MINE

OVERVIEW Operations at the Martabe Gold Mine are based
on three pits and a conventional carbon-in-leach
The Martabe Gold Mine is located in North (CIL) gold ore processing plant. Associated
Sumatra. Construction of the mine commenced infrastructure includes haul roads, a tailings
in 2008 with production of gold and silver storage facility (TSF), raw water storage tanks,
commencing in July 2012. As of December 2018, sediment control dams, a water polishing plant,
the Martabe Gold Mine had been in production for an analytical laboratory, a high voltage switchyard,
six and a half years with an approved mine plan explosive magazines and several workshops.
extending to 2033. Since commencement, the
mine has established a reputation for industry- Support facilities include administration and
leading operational, environmental and social support buildings, a fuel depot, warehousing
performance. facilities, a plant nursery, an accommodation
camp for the mine’s fly-in fly-out workforce,
sporting facilities and a medical clinic.
Martabe
Gold Mine
PHOTO TO BE ADDED

ABOUT THE COMPANY
Martabe Gold Mine Location
LOCATION
[102-4]
The Martabe Gold Mine operates under a

30-year Contract of Work (CoW) with the
Indonesian government. The area covered
by this agreement is 1,639 km² and extends
across four Regencies in the Province of
North Sumatra, namely South Tapanuli, Central
Tapanuli, North Tapanuli, and Mandailing Natal.
The mine itself is located entirely within the
Regency of South Tapanuli, with an active
footprint at the close of 2018 of 479 hectares.

ABOUT THE COMPANY
SITE FACTORS The site is located within the watersheds of

two streams, the Aek Pahu Hutamosu and
The Martabe Gold Mine is located in a largely the Aek Pahu Tombak. These waterways are
rural area dominated by native forest, palm oil potentially affected by runoff discharge from
and rubber plantations, and rice farming. Most the site. The Batangtoru River is potentially
of the support facilities are located adjacent affected by discharge from the site’s Water
to the trans-Sumatran highway and close to Polishing Plant.
a number of villages within the sub-district
of Batangtoru. Mining operations are located Annual rainfall at the site averages 4,553
several kilometers away on an elevated hilly millimetres. Rainfall averages are bimodal
area bordering the Batangtoru Forest. with peaks in March and November for
Pinangsori (the closest source of long-term
The majority of the landscape within the rainfall data).
mining footprint before project construction
was primary forest, secondary forest (already
logged and otherwise disturbed) and rubber
plantations. Due to the close proximity of
villages, townships and extensive plantation
areas, much of the area had experienced
prior disturbance, including the presence of
numerous walking tracks used by plantation
workers.
View of the Aek Pahu

stream, which receives
runoff from the
Martabe Gold Mine.
Villagers commonly
use local
waterways for
bathing and
washing.

ABOUT THE COMPANY
RESOURCES AND RESERVES MINERAL RESOURCES AND ORE

There are six defined mineral deposits at RESERVES
the Martabe Gold Mine. These deposits are PTAR reports on the size of its deposits using
mostly of a type known as high sulphidation two standard definitions which are consistent
epithermal deposits and comprise part of a with the Australasian Code for Reporting of
large-scale mineralised district which has Exploration Results, Mineral Resources and Ore
the potential to host further gold and gold- Reserves (‘the JORC Code’):
copper deposits. As of December 2018, the
Mineral Resource of the Martabe Gold Mine The Mineral Resource is the quantity of
was 8.1 million ounces of gold and 69 million gold or silver in defined deposits for which
ounces of silver. Ore Reserves were 4.5 there are reasonable prospects for eventual
million ounces of gold and 34 million ounces economic extraction. A Mineral Resource is
of silver, equivalent to an additional 16 years determined from exploration and sampling.
of mine operations. The Ore Reserve is the economically
mineable part of the Mineral Resource. This
estimate is derived from a Resource by
applying numerous modifying factors such
as cut-off grade, pit slopes, metallurgical
factors and economic factors. It is the Ore
Reserve that determines mine life, together
with production rate.
Night View of the

SAG Mill at the
Martabe Gold
Mine process
plant.

ABOUT THE COMPANY
EXPLORATION Mining activities in the field include clearing,

surveying, drilling, blasting, grade control
In addition to supporting mining operations, sampling, digging and trucking of waste rock
the Martabe Gold Mine is the base for the and ore, ore stockpiling and pit dewatering.
Company’s regional exploration program. PTAR Waste rock from the pits is placed in the TSF
considers the remaining potential at Martabe embankment rather than in waste rock dumps
to be high due to the size of the system and the as is done at most mines. Mining is conducted
large area remaining to be explored. Through by a mining service contractor, currently, PT
an ongoing exploration program the Company Macmahon Mining Services, utilising their own
continually seeks to extend Ore Reserves and equipment.
hence mine life.
As required, rock is blasted prior to mining, but
Exploration activities in the field are generally where possible, free digging (mining without
limited to small drill pads in addition to several blasting) is implemented. Most ore is fed
camps for workers. Material and personnel directly to a crusher, but based on grade and
movement to the drill pads is normally by degree of fragmentation, some ore is placed in
helicopter, minimising disturbance due to a stockpile near the crusher for breakdown or
ground travel. The pads are rehabilitated blending.
following completion of drilling. 2018 was
another very active year for exploration at
Martabe, continuing on from the intensive
drilling campaigns of 2016 and 2017. Twelve
PROCESSING
diamond drill rigs were operational for the The process plant at the Martabe Gold
majority of the year drilling over 85,000 meters Mine is a conventional carbon-in-leach
of core. (CIL) plant with a capacity in excess of 5.6
million tonnes of ore per annum. The plant
Exploration facilities at the mine site operates continuously except for maintenance
include offices, a core shed and a helicopter shutdowns.
operations base. At the core shed, drill core
is logged for a range of parameters including Compared with some other methods of mineral
lithology, alteration, mineralisation and degree processing, the process of gold and silver
of oxidation, and is then sampled for testwork extraction from the ore is relatively simple, the
at an off-site laboratory. Drill core has been main steps being:
archived at Martabe since 1997 for future
Crushing and stockpiling of ore.
reference if required.
Grinding and conversion of ore to form a
slurry.
MINING Leaching of gold and silver from the slurry

using cyanide.
At the Martabe Gold Mine, ore is mined from
Adsorption of gold and silver in solution
relatively shallow pits located on mineralised
onto carbon granules.
hills or ridges. Mining commenced at the
Purnama pit in 2011 and mining at the nearby Removal of gold and silver from the carbon
Barani and Ramba Joring deposits commenced granules in a process called elution.
in 2016 and 2017 respectively. In 2018, Recovery of gold and silver through
approval was received for mining at the Tor Ulu electrowinning.
Ala deposit.
Smelting to produce dore bullion (gold and
silver combined) bars ready for shipment.
All bullion produced at the Martabe Gold
Mine is refined in Jakarta.

Processing Plant
& Purnama Pit.

ABOUT THE COMPANY
After the gold and silver is removed from the

Outputs
slurry, the remainder, called tailings, undergoes
a cyanide detoxification process which reduces Material Quantity
cyanide concentration to low levels. The Gold 12.8 tonnes
tailings are then pumped to the site’s tailings Silver 90.1 tonnes
storage facility (TSF) for permanent disposal.
Overburden 6.059 million tonnes
Production at the Martabe Gold Mine requires Tailings 5.572 million tonnes
utilisation of a wide range of inputs and yields Emissions 191,236 tonnes CO2
a range of outputs in addition to gold and silver equivalent
(below). All of these inputs and outputs require
General waste 1,613 tonnes
careful management across various activities
such as transport, storage, handling, utilisation, Industrial (B3) waste 529 tonnes
collection, and disposal. The successful

management of these activities without
significant incident since commencement of
operations reflects the systematic application
SUPPLY CHAIN
[102-9] [103-1] [103-2] [103-3]
of operational controls at the Martabe Gold
Mine for risk mitigation. The operation of Martabe Gold Mine is
supported by numerous suppliers and service
providers. Important examples of work done
Key Inputs and Outputs Martabe Gold Mine under contract to PTAR include:
2018 All mining at the site, and associated civil
works, including the ongoing construction
Inputs
of the tailings storage facility, is conducted
Material Quantity by a mining services contractor.
Mined ore 5.665 Mt The transport of goods purchased nationally
Diesel fuel 15.390 Ml and internationally is managed by a
logistics services contractor. Almost all
Electricity 146,288 MWh
shipped goods pass through Sibolga Port
Grinding balls 9,312 tonnes before being trucked to site in road convoys,
Quick lime 6,599 tonnes with PTAR managing associated on-site
Sodium metabisulphite 5,133 tonnes warehousing and stock control.
Cyanide 3,331 tonnes Other major site contractors are involved

in the provision of medical, laboratory, site
Blasting materials 3,065 tonnes
security, camp administration and catering,
Caustic 2,248 tonnes geotechnical engineering and drilling
Hydrochloric acid 1,032 tonnes services.
Tailings flocculent 482 tonnes The transport of bullion from site to a
Activated carbon 236 tonnes refinery in Jakarta and subsequent delivery
of gold and silver to buyers is handled
Hydrogen peroxide 184 tonnes
by a security contractor. A feature of the
Other chemicals 124 tonnes contractual provisions applying to this
Oils & lubricants 43 tonnes service is insurance for any loss of product
once it leaves the site gold room until it is
received by the buyer.

ABOUT THE COMPANY
Specialist advice and technical studies are quality criteria being met. At the close of 2018,
provided by various consulting companies. the Company had 809 active suppliers, of
Important contracts for the purchase of which 75 or 9% were local:
goods include those for bulk chemicals,
grinding media, fuel, lubricants and spare Breakdown of PTAR Suppliers by Origin (2018)
parts. Local 75
Other Indonesia 532

The Company applies strict controls on the
procurement of goods and services to ensure Outside Indonesia 202
that cost, quality, product specification and Total 809

other important commercial outcomes are
consistently achieved:
The evaluation of tender bids or quotations SALE OF PRODUCT
is conducted by specialist procurement [102-6]
staff independently of the end-user
departments. All bullion produced at the Martabe Gold Mine
is refined in Jakarta by a state-owned refinery
Depending on value, all purchases must be
and then exported by the Company and sold.
based on an approved purchase order or
Gold and silver are commodities, and as such
contract, and all PTAR contracts contain
the Company does not brand or advertise its
a large number of standard conditions
product, and its sale of refined gold and silver
designed to protect Company interests,
does not attract particular stakeholder interest
including a set of standard Health Safety
or concern. Customer purchase specifications
and Environment (HSE) requirements for
are simple, namely percent purity and physical
site contractors.
form (usually bar or granules), and instances
Approval of purchase orders, contracts of out-of-specification product have been
and payments for goods and services are extremely rare. The main customers are banks
made in accordance with a Delegations located in Singapore.
of Authority schedule which is set and
approved by the Board, and performed
within an on-line enterprise resource
planning (ERP) system.
SIGNIFICANT CHANGES
[102-10] [102-48]
In addition to the procurement requirements There were no significant changes to the
outlined above, PTAR has a policy to support organisation of PTAR, operations at the
local business development, and preferentially Martabe Gold Mine its supply chain or sale
purchases goods and services from local of product between 2017 and 2018 with the
suppliers and contractors subject to cost and exception of changes to Boards and senior
management resulting from a change of
ownership in December 2018 (documented in
detail in the PTAR 2018 Annual Report).

ABOUT THE COMPANY
ORGANISATIONAL AND
GOVERNANCE ASPECTS
INTRODUCTION Continual improvement of health and safety
performance, with the safety and health of
The following sections detail organisational and employees and local communities being
governance aspects of particular importance to paramount.
the implementation of sustainable development
Continual improvement of environmental
by the Company, including:
performance, with protection of biodiversity
Strategy for implementing sustainable and prevention of pollution being paramount.
development.
Protection of basic human rights within
Identification of key sustainability risks and the organisations and in dealings with
opportunities. stakeholders.
Precautionary Principle. Respect for the cultures, customs and values
External standards, codes and other of local communities.
industry initiatives. Contribution to the development of local
Corporate governance. communities, through assistance in meeting
immediate needs, and also providing for
Stakeholder engagement.
sustainable development into the future.
Transparent, effective, inclusive and open
SUSTAINABILITY STRATEGY engagement with all stakeholders.
The Company’s sustainable development strategy

is documented in its Sustainability Policy.1 This IDENTIFICATION OF KEY
policy was developed following a review of two
important protocols for assessing progress in SUSTAINABILITY RISKS AND
implementing sustainable development, namely OPPORTUNITIES
the United Nations Sustainable Development [102-15]
Goals2 and the International Council on Mining
and Metals (ICMM) 10 Principles.3 The PTAR The Company’s efforts in managing sustainability
Sustainability Policy commits the Company to are directed towards the key sustainability risks
conduct all business activities in accordance with and opportunities associated with the Martabe
the following goals and principles: Gold Mine. The environmental and social risks
Ethical business practice, based on a sound associated with the Martabe Gold Mine have been
system of corporate governance. systematically assessed in detail in the project’s
AMDAL and subsequent AMDAL Amendments as
Full compliance with applicable laws and per regulation. These assessments include:
regulations.
Original AMDAL (2008).
Effective management of risk, based on
AMDAL Addendum addressing relocation of
well-developed management systems.
the plant site and other changes (2010).
Full environmental and social impact
AMDAL Addendum addressing the Barani and
assessments for all new projects, and for
Ramba Joring prospects (2016).
significant changes to existing operations.
AMDAL Addendum addressing the Tor Ulu
Ala prospect and various operational changes
1.
www.agincourtresources.com.
(2018).
2.
www.un.org/sustainabledevelopment/sustainable-development-goals.
3.
Sustainable Development Framework: ICMM Principles (2015).

View of the
lowlands
ABOUT THE COMPANY
area at the
Martabe
Gold
Mine.

ABOUT THE COMPANY
The assessment process applied in these studies is summarised as follows:
ASSESSMENT PROCESS APPLIED IN THE AMDAL PROCESS FOR DETERMINING THE

KEY ENVIRONMENTAL AND SOCIAL IMPACTS ASSOCIATED WITH A PROPOSAL
Identification of Potential Impacts

Scoping Process Evaluation of Potential Impacts
Hypothetical Significant Impacts
Defining Study Setting Study Area Boundaries

Boundaries Setting Study Timeline
Pre-construction Phase
Significant Impact Construction Phase
Prediction
Operational Phase
Significant Impact Matrix

Significant Impact
Flowchart of Significant Impacts
Evaluation
Assessment of Environmental and Social Feasibility
Environmental and Social Management Plan (RKL)

Required Controls
Environmental and Social Monitoring Plant (RPL)

ABOUT THE COMPANY
A separate source of information on The way in which these risks and opportunities
environmental and social risks associated with are addressed by the Company is documented
the project that makes direct reference to the in detail in the following sections of this report.
Equator Principles (2013) and International
Finance Corporation (IFC) Performance
Standards on Environmental and Social PRECAUTIONARY PRINCIPLE
Sustainability is an Environmental and Social [102-11]
Due Diligence Report conducted by consultants
for the Martabe Gold Mine in 2017. In the development and implementation of its
sustainability strategy, the Company supports
Integrating these two sets of information, the the “precautionary principle”, which can be
significant social and environmental impacts, stated as “where there are threats of serious
risks and opportunities associated with the or irreversible damage, lack of full scientific
Martabe Gold Mine are summarised as follows: certainty shall not be used as a reason for
postponing cost-effective measures to prevent
Key Impacts and Risks environmental degradation”2. Applying
the Precautionary Principle can help an
Health and safety of employees and the organisation to reduce or to avoid negative
community in general. impacts on the environment.
Impacts on biodiversity.
Loss of land productivity.
EXTERNAL STANDARDS,
Pollution of surface water and groundwater
resources.
CODES AND OTHER INDUSTRY
Disruption to community values.
INITIATIVES
[102-11]
Stakeholder uncertainty and concern.
To date, PTAR has not formally endorsed or
sought certification against external standards,
Key Opportunities
principles, codes or other industry initiatives
addressing sustainability. The Company
Fiscal1 and economic benefits.
applies a risk-based, rather than compliance-
Local employment and employee based approach to the management of
development. environmental and social impacts and risks.
Improvement of local community services Operational controls, such as the PTAR Codes
and community infrastructure. of Practice, have been developed specifically
for the site based on technical studies, reviews,
Local business development.
risk assessments, benchmarking of industry-
Local government capacity-building. leading practice and expert advice.
Support for community values.
A number of sources reflective of industry-
leading practice have been referenced in the
development of the Company’s operational
controls, as follows.
1.
Fiscal benefits are funds provided to government from the Company including but not limited to taxes and royalties.
2.
United Nations Conference on Environment and Development (UNCED) 1992.

ABOUT THE COMPANY
Industry Codes Referenced by PTAR in the Development of Operational Controls for Sustainability
Australian National Committee on Large Applicable ICOLD and ANCOLD dam safety guidelines are referenced as
Dams (ANCOLD) and International minimum requirements by PTAR Code of Practice Safe Tailings Disposal
Committee on Large Dams (ICOLD) and also design reports produced by the TSF design consultancy
guidelines (various) engaged by PTAR.
Business and Biodiversity Offsets Program The BBOP Standard was referenced in biodiversity offset studies
(BBOP) Standard on Biodiversity Offsets implemented by PTAR.
(2012)
Equator Principles (2013) Implementation of the Equator Principles at the Martabe Gold Mine has
been audited several times as a due diligence measure for the benefit of
third-parties.
Global Reporting Initiative (GRI) Standards The GRI Standards and the preceding GRI-G4 Reporting Guidelines have
(2017) been applied in the Company’s sustainability reports.
ICMM 10 Principles for sustainable The ICMM 10 Principles for sustainable development were referenced in
development (2003) the development of the PTAR Sustainability Policy.
ICMM Position Statement on Preventing The critical controls documented in this position paper were referenced in
Catastrophic Failure of Tailings Storage a revision of PTAR Code of Practice Safe Tailings Disposal.
Facilities (2016)
International Financial Corporation IFC Performance Standard No 6 was referenced in the development of
(IFC) IFC Performance Standard 6: PTAR Code of Practice Biodiversity Protection and in environmental risk
Biodiversity Conservation and Sustainable assessments.
Management of Living Natural Resources
(2012)
ISO 14001 (2004) and ISO 18001 (2007) The PTAR HSE Management System was developed with reference to
these international standards for environmental and safety management
systems.
United Nations Sustainable Development These sources and others were referenced in the development of the
Goals (2015) and ICMM Community current PTAR Community Development Plan.
Development Toolkit (2015)
MEMBERSHIP OF INDUSTRY
ASSOCIATIONS
[102-13]
In 2018, the Company was a member of the

Indonesian Mining Association (IMA) and
the Association of Exploration and Mining
Development Indonesia (EMD).

ABOUT THE COMPANY
COMPANY ETHICS AND Sustainability Policy.
INTEGRITY Health and Safety Policy.

[102-16] Community Policy.
The Company is committed to maintaining high Environment Policy.

standards of corporate behavior and decision-
making. These are made explicit through the These policies are available to stakeholders
PTAR Core Values of Growth, Respect, Excellence, at www.agincourtresources.com. These Core
Action and Transparency. Values and associated Company policies are
upheld across all aspects of the Company’s
The application of these Core Values to operational operations by means of a strong corporate
decision-making in support of sustainable governance framework, as described in the
management is codified by means of key Company following section.
policies approved at the Board level, namely:
Yuda Nasution (Superintendant

Geotechnical & Hydrogeology), Aris
Tambunan (Mining Manager),
Elis Hutabarat (Senior Engineer
Short Term Planning),
Adiasti Hardini (Surveyor
Mining) and Fakhrur
Razi (Engineer Short
Term Planning)
from PTAR
Mining
Department.

ABOUT THE COMPANY
CORPORATE GOVERNANCE members of the Boards of Commissioners

[102-17] [102-18] and Directors, declare dividends and
make changes to the Company Articles of
Association.
Overview
A Board of Commissioners oversees the
Corporate governance is the system of rules, actions of the Board of Directors and
practices and processes by which a company represents the interests of all stakeholders.
is directed and controlled in order to ensure It grants approvals for certain actions and a
accountability, fairness and transparency in its yearly business plan.
relationships with its stakeholders. PT Agincourt
An Audit Committee provides independent
Resources is committed to the implementation of
opinion to the Board of Commissioners,
good corporate governance (GCG) principles.
reviews the Company’s financial reports, and
monitors the implementation of corporate
PTAR Corporate Governance Framework governance.
Implementation of GCG by the Company is regulated A Resources and Reserves Governance
by a corporate governance framework directed Committee provides assurances to the
towards a range of key outcomes: Boards and Company shareholders that
Ensuring that all business decisions and Resources and Reserves are developed
activities are aligned with the Company’s Core in line with the JORC1 code and Company
Values. policy.
Maximising corporate value and return to An Internal Audit Function is responsible for
shareholders. managing the Company’s audit program,
reporting to the Audit Committee.
Protection of Company assets.
The Company is operated under the control
Ongoing improvement in operational of a Board of Directors, led by the Company’s
performance in line with industry leading President Director. The Board of Directors is
practice. responsible for the operational performance
Meeting all compliance obligations. of the Company, risk management and
Development of management competency implementation of policy such as the
throughout the organisation. Sustainability Policy.
Meeting corporate social responsibilities The operational running of the Company is

including protection of the environment, delegated to a management team, led by
stakeholder engagement, community the President Director, with divisional heads
development and employee welfare. responsible for different aspects of the
business.
Management of enterprise risk.
The performance of the Company in implementing
The Company corporate governance framework is
GCG is regularly reviewed at Shareholder and
based on a hierarchy of bodies and appointments.
Board level based on a range of information
The General Meeting of Shareholders is including company reporting, audits and audited
the highest decision-making body of the financial statements.
Company, with rights to appoint and dismiss
1.
A professional code of practice that sets minimum standards for Public Reporting of Minerals Exploration Results, Mineral Resources and
Ore Reserves.

ABOUT THE COMPANY
Operational Controls for Good Decision-making at the operational level is

subject to a wide range of controls such as
Corporate Governance
the Delegation of Authority Manual, which
In the implementation of corporate governance, sets out levels of authority for approval
the Company complies with a range of Indonesian of financial transactions, and PTAR Codes
legal requirements, specifically Law number of Practice, which define accountabilities
40/2007 on Limited Liability Companies and and required outcomes in regards to
regulations under the Indonesian Financial management of operational risk and
Services Authority. In addition to legal compliance.
requirements, the Company operates under a Employees of PT Agincourt Resources
range of internal controls, summarised as follows: are required to sign a Code of Ethics and
Decision-making at the Board level is Business Conduct. This commits every
regulated by the PT Agincourt Resources employee to outcomes related to company
Articles of Association, resolutions from governance, legal compliance, ethical
General Meetings of Shareholders and behavior at work and avoidance of conflict
annual business plans. of interest.
Decision-making at the company level is A Supply Chain Code of Conduct and
regulated by Company policies such as the Supplier Code of Conduct set out specific
PTAR Sustainability Policy. requirements for employees involved in
procurement and suppliers respectively.
KEY ELEMENTS OF THE PTAR CORPORATE

GOVERNANCE FRAMEWORK
General Meeting
of Shareholders Audit Committee
Board of Remuneration
Commissioners Committee
Resources &
Board of
Reserves Governance
Directors
Committee
President Director
Vice President
Director & CEO
Director of Director of Director of Chief Director of

External Relations Finance Operations Geologist Engineering

ABOUT THE COMPANY
STAKEHOLDER ENGAGEMENT
OVERVIEW Support local employment and implement
[102-40] [102-42] fair and transparent processes for
recruitment and procurement.
Stakeholder engagement is the process by which Support regulatory bodies in the discharge
a company communicates with its stakeholders of their obligations under regulation,
to share information, understand stakeholder including the implementation of approval
concerns and expectations, resolve issues and processes and site inspections.
maximise opportunities for cooperation. The
stakeholder groups of PT Agincourt Resources Meet all government reporting requirements
are diverse, with a wide range of views, beliefs, in an accurate and timely manner.
expectations and needs. Key amongst these are: Facilitate open reporting of concerns and
Employees and their dependents. grievances by stakeholders in relation to
Company activities.
Local communities around the Martabe
Gold Mine.
KEEPING STAKEHOLDERS
Cultural and religious organisations.
INFORMED
National, regional and local government and [102-43]
agencies.
The Martabe Gold Mine remains the only mining
Non-government organisations.
operation in South Tapanuli, and many local
Suppliers and contractors. stakeholders have a limited understanding of
Educational institutions. mining and the management of environmental
and social impacts associated with mining
The media. operations. To help ensure a good understanding
of operations at the Martabe Gold Mine amongst
Effective stakeholder engagement is an essential local stakeholders, the Company maintains an
element in maintaining and strengthening active broad-based communication program. This
the Company’s social licence to operate. PT includes:
Agincourt Resources has been carefully managing
stakeholder relationships since commencement Tours of the mine site for a broad range of
of the Martabe project. The general approach has stakeholder groups (1,077 participants in
been to: 2018).
Identify stakeholders and understand their Publication of Tona Nadenggan (meaning

needs, concerns and aspirations. “the good message” in the local Angkola
language), a bi-monthly magazine that
Actively seek dialogue and build trust with covers matters of interest to stakeholders
all stakeholder groups, including potentially including community development projects,
marginalised groups such as women, the environmental management and cultural
elderly and youth. activities.
Provide timely and accurate information to Publication of Saroha (meaning “one
stakeholders about all aspects of operations heart” in the Angkola language), a weekly
at the Martabe Gold Mine. newsletter for employees which covers
Show patience in dealing with others and community-related topics.
respect for their viewpoints, beliefs, cultural
values and practices.

Ruli Tanio (PTAR Director Engineering),
Muliady Sutio (PTAR President
Director), Frans Kesuma (PTAR
President Commissioner),
Noviandri Hakim (PTAR
Director & CFO) and
Rinaldi Pratama (PAMA)
participate in a Batak
welcoming ceremony
conducted by
local community
leaders to mark
the change in
Company
ownership
in 2018.

ABOUT THE COMPANY
Maintaining the Company website (www. CONSULTATION WITH

agincourtresources.com) which includes
access to sustainability reporting and GOVERNMENT
information on community relations and [102-44]
community development activities.
One of the most active areas of stakeholder
Wide distribution of the company’s engagement for the Company is dialogue with
Sustainability Reports, in Indonesian, government on matters ranging from approvals,
English and the Angkolan languages. reporting, compliance, oversight, cooperation on
Distribution of media releases, media community development programs and general
briefings and site visits for media groups. sharing of information.
Participation in a range of exhibitions,

conferences and workshops.
MANAGEMENT OF
GRIEVANCES AND CONCERNS
COMMUNITY CONSULTATION The Company encourages unrestricted reporting
An important element of the Company’s from stakeholders of any concerns and grievances
stakeholder engagement strategy is the Lembaga regarding Company activities, and maintains a
Konsultasi Masyarakat Martabe (LKMM). grievance register to record such concerns. Any
The purpose of this consultative forum is to recorded grievances are assessed and provided
facilitate dialogue between the company and with a response.
local communities. Membership of the LKMM
comprises elected representatives from 15 local
villages, including participants from women’s
groups and youth groups.
Pramana Triwahjudi (PTAR Senior

Manager Community) and
Ed Cooney (PTAR Director
Operations) crossing a
hanging bridge at Batuhula
Village before inspecting
a hydraulic ram paddy
irrigation pump, both
constructed with
assistance from
PTAR.

OUR LOCAL
COMMUNITIES

OUR LOCAL COMMUNITIES

In many ways the most important stakeholder There are fifteen villages spanning the sub-
groups for PT Agincourt Resources are the local districts of Batangtoru and Muara Batangtoru
communities surrounding the Martabe Gold Mine. that are designated as Directly Affected Villages
The people living and working closest to the (DAVs) in terms of being potentially affected
mine are those most likely to be affected by the by operations at the Martabe Gold Mine. In
Company’s day-to-day activities; and are the most total, these villages support a population of
important in terms of ongoing stakeholder support approximately 20,000.
for Company operations. Aside from being of key
importance in determining the Company’s social Agriculture is the most significant employment
licence to operate, local communities also contribute sector for these villages. The most widely grown
the large majority of people working at the mine, and commodities are rice and corn. Cassava, sweet
so are direct and vital contributors to the ongoing potatoes, peanuts, soya beans and green beans
performance and growth of the Company. are also planted. Some local people also work in,
Asmina Daulay and her

son in front of a mini
hydro power plant
at Napa Village,
constructed
with
assistance
from
PTAR.

or operate, rubber and oil palm plantations. Trade majority of these are Angkolan, and Batangtoru
and service industries are the next most important is considered to be the cultural territory of the
sources of employment after agriculture, with Angkola, with the Angkola language commonly
Batangtoru and Muara Batangtoru supporting used for daily communication. Also important
many small retail businesses and other in the development of Batangtoru, were the
commercial enterprises such as banks and Javanese, who began arriving around 1906 to
transport providers. work in rubber plantations, and the Nias, who
began arriving around 1925.
Participation in elementary and secondary
school in these local communities is high, with Local cultural institutions and customs have a
opportunities for university education within strong influence on everyday life and the resolution
the region and province, as well as elsewhere in of social problems in Batangtoru and Muara
Indonesia. There is a medical clinic and public Batangtoru. Kinship amongst the Angkola is
health centres (Puskesmas) locally, with major patrilineal (meaning the heads of families are male)
hospitals one to two hours distant by road in with men typically occupying customary roles such
Sibolga and Padangsidempuan. as village head. Social identity is strongly defined
by a person’s family group or clan.
The socio-economic conditions within local
communities have been used as the basis of the There are several types of land title in the local
Company’s community development programs, area, namely customary or adat land owned by
which focus on health, education, infrastructure, clans collectively, privately-owned land, land
agriculture, and economic development, as well as owned by the state and companies, and land
support for local cultural values and customs. donated for public religious purposes. Land use
away from settlements is dominated by forests,
The communities around the Martabe Gold Mine plantations, gardens, rice paddies and fish
comprise a number of ethnic groups, all originally farming. Large areas of level land have made
from other areas in Indonesia. Most dominant Batangtoru a strategic location for plantations,
and longest-established are three interrelated and Batangtoru Plantation (PTPN III) is the
groups known as the Angkola, Mandailing, and oldest state-owned rubber enterprise in Sumatra,
Toba, often collectively referred to as Batak. The established in 1906.

View of Batangtoru
township
(Martabe Gold
Mine visible
in the upper
right
corner).

OUR APPROACH
TO MANAGING
SUSTAINABILITY
AND RESULTS
ACHIEVED 2018

OUR APPROACH TO MANAGING FOR SUSTAINABILITY AND RESULTS ACHIEVED IN 2018
INTRODUCTION
This section describes the operational practices The GRI Standards state that the focus of
being applied at the Martabe Gold Mine for sustainability reporting for an enterprise should
the management of sustainability1 and the be the material topics (or aspects) related to its
results achieved in 2018. These practices have activities, these being its significant economic,
been developed at the site based on industry environmental and social impacts; or aspects
experience, modified as required to meet site that otherwise substantively influence the
conditions, and improved over time based assessments and decisions of its stakeholders.
on operational experience and advances in However, before moving to these material topics,
knowledge. The Company’s goal in this regard the first section below provides an overview
is the consistent implementation of best of more general management resources and
management practice2. practices in support of sustainable development
at the Martabe Gold Mine.
GENERAL MANAGEMENT ASPECTS

INTEGRATED HSE documents, records, registers, databases and
special purpose software, all readily accessible via
MANAGEMENT SYSTEM the Company’s intranet. The key operational controls
Management Systems comprise collections in this system are the PTAR Codes of Practice,
of policies, procedures, standards, databases, which describe the full range of outcomes required
checklists, training materials and other tools to address particular areas of risk, or standard
that when used together support continual procedures in support of risk management.
improvement towards defined targets and goals.
PT Agincourt Resources has implemented The range of controls documented in these
an integrated Health Safety and Environment Codes of Practice includes risk assessments, key
(HSE) management system with reference to accountabilities specifications, standard procedures,
a range of external standards including ISO emergency arrangements and monitoring, and
14001 (Environmental Management Systems), reporting. PTAR Codes of Practice of relevance to
OHSAS 18001 (Occupational Health and Safety sustainable development outcomes include:
Management Systems) and the Indonesian
Audits and Inspections.
standard for mine safety management systems,
known as SMKP Minerba. Biodiversity Protection.
Emergency Management.
Safety and environmental management needs are
readily met by a single integrated management General Workplace Safety.
system because both disciplines address related HSE Accountabilities.
areas of operational risk, and in doing so rely on
HSE Compliance.
many similar processes and controls. The PTAR
HSE Management System largely comprises Hydrocarbon Management.
1.
Referred to under the GRI Standards as the Company’s “Management Approach”.
2.
Established techniques or methodologies that, through experience and research, have proven to lead to a desired result. (BBOP 2012).

Incident Management. RESOURCING, PLANNING AND

Industrial Hygiene Monitoring and REVIEWING
Measurement.
All PTAR departments are involved in managing
Job Safety Environment Analysis (JSEA).
outcomes in support of sustainable development.
Managing Pregnancy Related Work Accountabilities in this regard are incorporated
Restrictions. into departmental budgets, annual plans and
OHS Management – Measurement, life-of-mine plans. In addition, several PTAR
Monitoring and Improvement. departments are accountable for Company-level
outcomes: Community Relations, Occupational
Operational Risk Assessment and Control. Health and Safety, Environment, External Relations
Permit to Work. and Training and Development. Employees in
these Departments comprised 20% of the entire
Personal Protective Equipment.
Company workforce in 2018.
Safe Tailings Disposal.
Site Water Management. All PTAR roles have a job description that
documents general and role-specific HSE and
Waste Management. community management accountabilities and all
Work at Height. staff have annual performance KPIs incorporating
as appropriate key sustainability outcomes for
To assist in monitoring performance against the upcoming year. Performance in meeting these
sustainability outcomes during the year, a range outcomes is assessed as part of documented
of key sustainability performance indicators are annual performance reviews.
communicated in routine reporting. Examples
include a Monthly Safety KPI Dashboard, which
measures safety management across the STEERING COMMITTEES
departments using ten indicators, and a TSF Safety
& Stewardship Report. Managing sustainability outcomes at the Martabe
Gold Mine often requires contribution from a
The status of the PTAR HSE Management System range of technical specialists and team leaders
at the close of 2018, after over eight years of across a number of departments. To coordinate
development, is summarised as follows (not and direct effort in these situations the site
indicated are various databases and software operates a number of steering committees, each
systems). targeting a specific area of operational risk or
opportunity. These include:
Documents contained within the PTAR HSE Acid Mine Drainage Management Steering
Management System Committee.
600 535 Gender Diversity Committee Steering
500 Committee
400 Life of Mine Approvals Steering Committee.
300
223 Risk Management Committee Steering
200 153 Committee.
75
100 41
26
60 53 Safety and KTT Steering Committee.
5 1
0
Codes of Forms Training Manuals Standard Site Water Management Steering
Practice Courses Operating
Procedures
Committee.
Total Added in 2018 TSF Safety Committee.

MARTABE GOLD MINE MATERIAL

ASPECTS
[103-1]
Material aspects are the significant economic, Management of these aspects can be
environmental and social impacts that may correspondingly complex, with a range of short-
result from the Company’s activities; or any and long-term, and sometimes competing,
other aspect of importance that may influence goals. The principles and approaches applied in
the assessments and decisions of stakeholders managing these aspects at the Martabe Gold Mine
regarding to the Company. As required by the and the results achieved in 2018 are discussed in
GRI Standards, a systematic process has been the following sections.
applied to identify the Company’s material aspects
(Appendix 1). The results of this evaluation are
summarised as follows:
Material Aspects – PTAR and the Martabe Gold Mine

Environmental Social
Environmental compliance Economic and fiscal benefits

Disposal of tailings Health and safety
Disposal of waste rock Local and national employment
Disposal of hazardous industrial wastes Gender diversity
Site water management Employee development

Rehabilitation and mine closure Community development
Protection of biodiversity
ECONOMIC AND FISCAL BENEFITS

OVERVIEW FISCAL BENEFITS
[103-1] [103-3]
Economic performance is regarded as one of Fiscal contributions by PTAR take the form of:
the three pillars of Sustainable Development,
Corporate Income Tax.
alongside environmental and social performance.
Operation of the Martabe Gold Mine generates Royalties on gold and silver sold.
a range of economic impacts on local, regional Personal Income Tax on employee wages.
and national economies. The net economic
Various other taxes at Central and Regional
impact is highly positive and is a key contributor
government levels such as land and building
to the Company’s implementation of sustainable
taxes.
development. The financial contributions by the
Company can be divided into two classes, namely Dividends.
fiscal (payments to government) and economic
(payments to the general public).

A dore pour at the

Martabe Gold
Mine producing
bars
containing a
mixture of
gold and
silver.
One example is the five percent ownership of and are competitive both locally and nationally.
PTAR by PT Artha Nugraha Agung (PTANA), In addition to health cover for employees and
which is 70 percent owned by the South Tapanuli dependents fully funded by the Company, all national
District government and 30 percent owned by the employees are enrolled in government social
North Sumatra Provincial government. This was a security and healthcare programs as required under
voluntary divestment by the Company, that ensures regulation. These provide for work-related accident,
the Regional and Provincial Governments receive death, provident fund and retirement benefits. An
fiscal benefit from operation of the Martabe Gold employee who reaches retirement age is entitled
Mine (under the shareholders agreement, PTANA to receive severance pay, separation pay and other
is required to allocate 40 percent of dividends compensation as stipulated under manpower laws.
to community development projects in the area
surrounding the Martabe Gold Mine). PTAR also supports the Indonesian economy
through the preferential purchase of goods and
The Company’s annual financial statements services locally and nationally subject to quality
are audited by an independent accounting and price criteria being met, and also makes direct
firm to support transparency in meeting fiscal financial contributions to community development
commitments. The Annual Reports containing these programs and projects each year.
statements are made available to the public on the
Company’s website.1
BUSINESS SUSTAINABILITY
ECONOMIC BENEFITS The Company operates a Martabe Improvement
[103-2] [201-3] Program (MIP) to support ongoing improvement
across all aspects of the business. Since inception
In addition to fiscal benefits, significant economic in 2013, the MIP has consistently delivered
benefit passes directly to the community through improvements in asset utilisation and operational
salaries, wages and other benefits to employees. efficiencies, reflected by ongoing reductions in
PTAR ensures that salaries, wages and associated All-in Sustaining Cost (AISC).2 Lower production
benefits meet or exceed government minimum costs allow for lower ore cut-off grades, supporting
requirements, are in accordance with the PTAR CLA, additions to Ore Reserves and a longer mine life.
1.
https://www.agincourtresources.com/
2.
All-in Sustaining Cost (AISC) is a non-GAAP (Generally Accepted Accounting Principles) financial performance measure for gold producers.

RESULTS ACHIEVED 2018 This strong operational performance supported

exceptional financial results for the year. A Net
In 2018, the operational performance of the Profit After Tax (NPAT) of $166.8 million for the
Martabe Gold Mine was outstanding, with new year was a record for the Company, reflecting both
production benchmarks being achieved across higher sales volumes and lower costs.
a majority of key operating metrics such as gold
produced and All-in Sustaining Cost (AISC).
Gold Sold Gold and Silver Revenue
$’000
550,000
51,966
oz 500,000
450,000 450,000 40,266

412,298
400,000 400,000 33,506 40,966
351,828 40,183
350,000 350,000 39,708
302,448 309,457
300,000 280,363 273,805 300,000
250,000 250,000 522,232

444,172
200,000 200,000 395,455 385,474
344,407 351,285
150,000 150,000
100,000 100,000
50,000 50,000
0 0
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Gold Silver
All-in Sustaining Cost* Net Profit After Tax (NPAT)
$M
$/oz 180
166.8
800 799 160 151.3
699
700 140
120.7
600 120
503
500 100
91.1
429
405
400 367 80
300 60
47.2
41.9
200 40
100 20
0 0
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
*
All-in Sustaining Costs (AISC) is a non-GAAP (generally accepted accounting principles) financial performance measure for gold producers.

As in previous years, the strong operational and Wages and Benefits PTAR Employees
financial performance of the Company in 2018
supported significant financial contributions to its $ million
stakeholders. These included: 30

26.5
28.6 29.0
24.7 25.2
25
Tax and royalty payments to government 20.3
20
amounting to $126 million. Additionally,
15
the South Tapanuli District government and
10
the North Sumatra Provincial government
5
received dividends through the ownership of
0
5% of PTAR totaling $7.7 million. 2013 2014 2015 2016 2017 2018
Wages and benefits paid to PTAR
employees and contract staff amounting to
$29.0 million.
Purchase of Local Goods and Services
Payments for the provision of goods and
services by local suppliers amounting
$ million
to $ 11.4 million (the reduction in value
35
from 2017 resulted from lower diesel 30.9 30.1
consumption following switching to PLN 30
25
grid power rather than the use of site 20.7
gensets). 20
15 12.2 13.8
Over $1.3 million spent on community 10

11.4
development programs (this value will rise 5

and fall from year to year depending on the 0
value of major infrastructure projects). 2013 2014 2015 2016 2017 2018
Tax & Royalty Payments Community Development Investment
$ million
$ million 2.00 1.9
126.4 1.7
140
1.5
120 1.50
1.3 1.3
100 1.2
77.8
80 1.00
60 52.5
40 37.9 0.50
30.7
21.2
20
0 0.00
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018

2018 was another excellent year for exploration at Mineral Resources and Ore Reserves
Martabe, continuing on from the intensive drilling
M oz
campaigns of 2016 and 2017. Twelve diamond
drill rigs were operational for the majority of 2018. 10
Ore Reserves decreased by 1.1% in 2018 to 88 8.8
million tonnes, net of current year mining depletion. 8

8.1
7.5
8.1
7.4 7.4
Contained Gold decreased by 6.3% or 0.3 million
ounces net of depletion to 4.5 million ounces. 6
Whilst 2018 saw a slight decrease in Mineral 4.7 4.5
Resources and Ore Reserves, exploration activities 4

3.2
during 2018 resulted in considerable upgrades to 3.0
2.7 2.8
the classifications of the known Mineral Resources 2
at Purnama and Ramba Joring, from Indicated to

Measured. Deep drilling undertaken as part of the 0
Underground Sulphide Study has identified high 2013 2014 2015 2016 2017 2018
grade mineralisation which will be further targeted Resources Reserves
in the 2019 drilling program.
ENVIRONMENTAL COMPLIANCE
GENERAL MANAGEMENT The most important environmental compliance
requirements at the Martabe Gold Mine are in
APPROACH regards to the following activities:
[103-1] [103-2] [103-3]
Discharge of water from site.
The hierarchy of laws In Indonesia comprises, in Groundwater quality.
the following order of the Constitution, Legislation,
Government Regulations, Presidential Decrees and Emissions (from generators and stacks).
Regional Regulations. Legislation is passed by Handling, storage and disposal of
the legislative assembly (DPR) while regulations hazardous waste.
are generally passed by relevant ministerial
Placement of tailings.
departments to implement, interpret, or make
more specific the laws that they administer and Clearing of vegetation.
enforce. Provincial and district governments can
also issue regulations. The PTAR Environmental Policy commits the
Company to maintaining compliance with all
Operations at the Martabe Gold Mine are applicable legal requirements. To assist the site
accordingly subject to a broad range of management team in this regard, PTAR Code of
environmental laws and regulations. Additionally, Practice HSE Compliance provides an overview
various permits for activities such as the of the important HSE statutory requirements
discharge of treated water and the operation of applying to the Martabe Gold Mine, and specifies
temporary hazardous (B3) waste storage facilities accountabilities for managing compliance with
set more specific compliance requirements for the
site.

these requirements. A Legal Database and an

Operating Conditions Register are available on the
RESULTS ACHIEVED 2018
Company intranet. Additionally, HSE compliance In 2018, the Company maintained its record
requirements across a range of key site activities of effective management of environmental
are documented in various PTAR Codes of compliance. To summarise, the key achievements
Practice. in this regard, were as follows:
Compliance with routine reporting
To ensure that Company senior management
requirements of permits and approvals.
remain well-informed of environmental
compliance status, a monthly Environmental Compliance with stack and generator
Compliance Report is issued by the Environmental emission limits.
Department that documents all compliance Compliance with water quality limits
monitoring results and associated regulatory applying to discharge from the Water
limits as well as the status of environmental Polishing Plant. This continued an unbroken
permits. record of discharge compliance since
commencement of operations.
To ensure the accuracy and independence of
water quality compliance data the following Compliance with requirements applying
controls are applied: to the handling, storage and disposal of
hazardous (B3) waste.
Sampling is conducted by trained
technicians according to standard protocol Compliance with environmental monitoring
that ensures preservation of the sample and reporting requirements set out in the
prior to testing. Amdal Environmental and Social Monitoring
Plan (RPL)
All analyses are conducted by a certified
and independent testing service provider Compliance with closure bond
located in Jakarta. requirements.
A system of sample identification is used A significant event in terms of managing

that prevents the receiving laboratory from environmental compliance was approval of
knowing the sampling location, to avoid an Amdal Addendum in May 2018. This study
unintended bias in reporting of data. addressed a range of operational changes
A formal QA/QC process is applied to including:
minimise the likelihood of sampling and Mining of the Tor Uluala deposit.
analytic errors (using sample blanks and
duplicates). Haul road construction.
All results are managed in an environmental Raising of the TSF embankment.

monitoring database. Increasing processing plant throughput to
Water quality monitoring data is routinely 5.9 million tonnes per year.
reviewed by a consultant expert in tropical Utilisation of used oil in blasting.
aquatic ecosystems, who also visits the
A 10% increase in maximum Water
site twice per year to audit water sampling
Polishing Plant discharge rate.
practices.
Improving the management of site runoff
water by lime dosing in sediment ponds to
control pH.

the ore at the Martabe Gold Mine is known as the The Martabe TSF comprises an engineered
to a fine slurry by crushing
Carbon-in-Leach and grinding
(CIL) process and adding
and is similar to embankment.
embankment in The embankment
a valley. is of conventional
The tailings are
water
that atand
mostcyanide. Once
other gold the gold
mines. Theandoresilver have
is reduced and provenindesign,
deposited with four
the storage main
space internalbehind
provided zones:the
been recovered,
to a fine slurry bythis slurry is
crushing known
and as tailings.
grinding The
and adding •embankment.
A clay layer The to prevent seepage.
embankment is of conventional
large
watermajority of goldOnce
and cyanide. miningtheoperations dispose
gold and silver haveof •andTwo filterdesign,
proven layers adjacent
with fourto the internal
main clay layer to
zones:
tailings in on-land this
been recovered, containment structures
slurry is known known The
as tailings. • protect it against
A clay layer movement
to prevent due to earthquakes
seepage.
DISPOSAL OF TAILINGS
as tailings
large
typically
tailings in
storage
majority
comprises
facilities
of gold mining (TSFs).
an engineered
on-land containment
A modern
operations
embankment
structures
TSFof
dispose
knownthat
• and
Twolong-term
does
filter layers
notitbuild
protect
settlement,
adjacent to
up within
against movement
andthetoclay
ensure
the structure.
water
layer to
due to earthquakes
functions
as tailingstostorage
providefacilities
a safe and stable
(TSFs). A location
modern for TSFthe • Aandlarge rock mass
long-term downstream
settlement, and to of ensure
these layers
waterto
permanent disposal an
typically comprises of tailings.
engineered Thisembankment
option usually is
that provide
does not forbuild
stability.
up within the structure.
GENERAL MANAGEMENT
the best available
functions to provide solution
a safefor tailings
and stablemanagement
location for thein
tailings in a Tailings Storage Facility (TSF)1 and
• A large rock mass downstream of these layers to
this is also the practice at the Martabe Gold
APPROACH
terms of environmental
permanent risk, and This
disposal of tailings. is theoption
method beingis
usually
Mine.
provide for stability.
The Martabe Gold Mine TSF comprises an
implemented
the best[103-2] at thesolution
available Martabefor Gold Mine.
tailings management in
[103-1] [103-3] engineered embankment in a valley with tailings
terms of environmental risk, and is the method being
implemented
placed in the containment space provided
The process at forthe Martabe Gold
extracting goldMine.
and silver from
upstream of the embankment. The embankment
ore at the Martabe Gold Mine produces a waste
itself is of conventional “rock-fill” downstream
stream called tailings, largely comprising water,
construction with several distinct internal zones
ground rock, lime and residual cyanide. The large
each serving a particular function.
majority of gold mining operations dispose of
Simplified cross-sectional view of the Martabe Gold Mine TSF embankment.
Simplified
SIMPLIFIED cross-sectional view
CROSS-SECTIONAL VIEWof
OFthe
THEMartabe
MARTABEGold Mine
GOLD TSFTSF
MINE embankment.
EMBANKMENT
Tailings
Tailings
Provided stability for the first stage of construction. The pit was not yet operating,
Rock Fill
so quarried rock was used.
Low permeability
Provided stability(clayey) material
for the first stageon
of the upstream face
construction. of the
The pit wasembankment.
not yet operating,
Zone Fill
Rock 1
Designed to rock
so quarried limit seepage
was used.from the tailings into the embankment.
ALow
sand filter layer. (clayey)
permeability Designed to collect
material on any seepage passing
the upstream through
face of the Zone 1 and
embankment.
Zone 1
Zone 2 direct it to the
Designed baseseepage
to limit of the embankment. Water
from the tailings intobuilding up in an embankment can
the embankment.
reduce
A sandstabilty and Designed
filter layer. lead to internal erosion.
to collect any seepage passing through Zone 1 and
Zone 2 Adirect
secondit tofilter
the layer.
base ofDesigned to separate
the embankment. the finer
Water sandup
building filter layer
in an (Zone 2) from
embankment can
Zone 5 the coarser
reduce mineand
stabilty waste
lead(Zone 3) and
to internal prevent the sand from moving into the mine
erosion.
waste.
A second filter layer. Designed to separate the finer sand filter layer (Zone 2) from
Zone 5 The structural
the coarser zone
mine of the(Zone
waste embankment. Provides
3) and prevent the stability
sand from andmoving
forms into
the bulk of the
the mine
Zone 3
earthworks.
waste. Also provides a storage location for almost all waste rock from the pit.
The structural zone of the embankment. Provides stability and forms the bulk of the
Zone 3
earthworks. Also provides a storage location for almost all waste rock from the pit.
36
The TSF embankment is progressively raised
in height using run-of-mine waste rock in order
The safety RESOURCES
PT AGINCOURT of the TSF is of the
• 2016 highest importance
SUSTAINABILITY REPORT
to the Company. Key goals in this regard include:
36
to provide sufficient storage capacity for the
ongoing production of tailings. When completed,
PT AGINCOURT RESOURCES • 2016 SUSTAINABILITY REPORT
No uncontrolled release of tailings or water
(through overtopping or damage to the
the embankment crest will have a height of 112
embankment).
meters above foundation (at centerline) and a
length of 1,220 meters. Prevention of impacts on groundwater from
seepage.
Prevention of fauna deaths within the TSF
itself.
1.
Some sites practice Deep Sea Tailings Placement (DSTP), which can offer significant advantages over land-based tailings placement. DSTP is not an
option for the Martabe Gold Mine due to the shallowness of local coastal waters.

Ongoing control of acid mine drainage in the than an embankments built using the
embankment. “upstream lifting” method as practiced at
some other mining operations.
Rehabilitation of the structure following
closure to a safe and stable condition. The specifications used for the design
comply with dam safety guidelines
Minimising TSF risk requires the application of published by the International Committee on
a diverse range of risk controls at the design, Large Dams (ICOLD).
construction, operation and closure stages of a
Embankment stability has been recognised
TSF. These controls include design specifications,
as a key performance criterion and the TSF
construction methods, QA/QC programs,
has been designed to remain safe in the
operational controls such as procedures,
event of a Maximum Credible Earthquake1
staff training, change management, condition
(MCE).
monitoring, and inspections, reviews and audits.
The most important of these controls are The design freeboard is equivalent to the
summarised as follows. Probable Maximum Flood2 (PMF). The TSF
design has been reviewed and approved by
the Indonesian Dam Safety Committee.
Key Risk Controls - TSF Design and
A consultant engineer is accountable for
Construction
ensuring that the construction of the TSF
is in accordance with the approved design,
The TSF design has been implemented by
and that a construction QA/QC program is
a geotechnical engineering consultancy
in place to appropriate standards. This role
recognised internationally for its expertise
is equivalent in function to the “Responsible
in this field.
Engineer” referenced in ANCOLD Guidelines
The method used to progressively on Tailings Dams (ANCOLD 2012).
construct the TSF embankment is
Construction QA/QC records are certified
known as “downstream lifting”. This
and safeguarded to provide a permanent
permits construction of a zoned rock-fill
record of compliance with the engineering
embankment that is inherently more stable
specifications.
Upstream lifting Method of TFS Embankment Martabe Gold Mine TSF

Construction
Upstream lifting using dried tailings to extend Downstream lifting using engineered compacted
the wall. zones of rock, clay and sand
1.
The most extreme earthquake that could be expected for a location, as based on geologic and seismologic data.
2.
The volume of water that may be expected from the most severe combination of meteorological and hydrologic conditions reasonably possible.

Key Risk Controls - TSF Operation RESULTS ACHIEVED 2018

In 2018, a total of 5.57 million tonnes of tailings
Before leaving the process plant, all tailings
was placed in the TSF without incident and in
are treated to reduce cyanide to low levels
accordance with operational requirements laid out
(below 50 mg/L) to ensure no risk to
in Code of Practice Safe Tailings Placement. Key
wildlife coming in contact with water held
outcomes in this regard included:
in the dam. This level is as specified by the
International Cyanide Management Code.1 Consistently good sub-aerial deposition of
tailings coupled with ongoing minimisation
Tailings are deposited in the TSF in thin
of TSF decant pond volume, resulting in
layers onto a tailings “beach”, allowing
extended beaching of tailings away from the
each layer to settle, drain and dry before
embankment.
being covered with a new layer of fresh
tailings. Benefits of this method include Maintenance of a large spare freeboard to
increased strength of the placed tailings accommodate storm inputs (typically in
and destruction of residual cyanide with excess of 10 million cubic meters compared
exposure to natural ultraviolet light. with a Probable Maximum Flood of 5 million
cubic meters).
Water held in the TSF pond is kept to a
minimum (excess water held within the Ongoing cyanide detoxification at the
pond of a TSF may increase the risk of process plant prior to tailings discharge.
overtopping, reduce the stability of the
No significant concerns identified in the TSF
embankment, impair tailings consolidation
condition monitoring program.
and increase seepage rates). Excess water
at the TSF is removed by pumping to a No measurable impacts on local
Water Polishing Plant (WPP) for treatment groundwater.
before release from site. Ongoing construction of the embankment in
A comprehensive TSF monitoring program accordance with the approved TSF design.
in place for the detection of any changes Ongoing monitoring of TSF construction
that might lead to unsafe conditions. This and performance by the Company’s
includes monitoring of water levels within geotechnical engineering consultancy.
the embankment, embankment movement
Implementation of a third annual
due to long-term settlement or seismic
independent review of the safety of the
activity, available freeboard, seepage rates
facility conducted by TSF experts.
and surface erosion.
Special initiatives implemented in 2018 to further

As a final measure to ensure that the ongoing
reduce TSF risk included:
design, construction and operation of the
TSF is reflective of industry leading practice, Completion of a rock extension to support
the Company engages expert consultants the final toe of the embankment.
to conduct an annual independent review of
Installation of a new tailings deposition
all aspects of TSF safety. To ensure that the
system to improve control of tailings
senior management team remain fully informed
deposition and tailings beach density.
regarding TSF risk, and the status of action to
further minimise risk, a TSF Stewardship Report is Planning of a significant drilling and
issued each month. instrumentation program across the
embankment to augment condition
monitoring (to be completed in 2019).
1.
The “International Cyanide Management Code For the Manufacture, Transport, and Use of Cyanide In the Production of Gold” (Cyanide Code) was
developed by a multi-stakeholder Steering Committee under the guidance of the United Nations Environmental Program (UNEP) and the then-International
Council on Metals and the Environment (ICME).

Commencement of use of satellite data The safety of the Martabe TSF has been of
(InSAR1) to measure movement of the the highest priority to PTAR since project
embankment. commencement. The general causes of TSF
failures are well understood by geotechnical
Review of the seismic hazard assessment
engineers involved in TSF design and
applied in the TSF design reports by a team
construction. For all significant TSF failures
of experts with particular knowledge of
world-wide, elementary engineering mistakes or
Indonesian conditions.
poor operational practices have been implicated.
The most common cause of TSF failure is
mismanagement of water, either excessive levels
REVIEW OF RECENT TSF of water within the decant pond or within the
FAILURES embankment itself. At the Martabe Gold Mine,
excess water in the TSF following rainfall is
Greater scrutiny of TSF safety internationally quickly removed by pumping to the site’s Water
has been triggered by two recent TSF failures in Polishing Plant (WPP) for treatment and then
Brazil. In both cases the embankments had been release. Construction of a properly designed
constructed using the upstream lifting method. zoned rock-fill embankment and minimisation of
The mode of failure in both cases (“liquefaction”) contained water as implemented at the Martabe
is specifically associated with embankments Gold Mine can greatly reduce TSF risk.
constructed in this manner, and is not associated
with rock-fill zoned embankments built using the
downstream lifting method, such as seen at the
Martabe Gold Mine.
1.
Interferometric synthetic aperture radar, a technique used in remote sensing. This method uses satellite data to generate maps of surface deformation,
potentially measuring millimeter-scale changes in deformation over spans of days to years.

DISPOSAL OF WASTE ROCK

GENERAL MANAGEMENT compacted rock or clay that functions as a barrier
to oxygen entry. The task of identifying waste
APPROACH rock as Non Acid Forming (NAF), Potentially Acid
[103-1] [103-2] [103-3] Forming (PAF) or some intermediate category
is made more challenging at the Martabe Gold
Waste rock is the second major waste stream
Mine by a complex geology featuring a range of
at the Martabe Gold Mine requiring careful
rock types in different states of weathering and
management to avoid environmental impacts.
containing variable quantities of sulphides.
Rock that must be mined to allow pit development
but that contains insufficient gold to warrant
The Company has implemented a range of
processing is called waste rock. The Martabe
technical studies over a period of years in order
Gold Mine is notable in that construction of the
to develop a best-practice AMD management
TSF embankment will utilise almost all the waste
program. The key milestones are summarised as
rock to be produced under the current mine
follows.
plan. As a result there has been no requirement
to dispose of waste rock in large dumps as Detailed rock waste characterisation
practiced at most other mining operations. The studies.
TSF embankment is therefore a fully engineered Development of waste rock types or classes
structure addressing both tailings and waste rock based on geochemical and physical criteria.
disposal requirements for the site.
Production of life-of-mine waste schedules.
As for many metalliferous mines, some of the Development of a sealing layer specification
waste rock at the Martabe Gold Mine has the based on sophisticated computer modelling
potential to form acid when disturbed by mining, with verification testing in the field.
due to the oxidation of naturally occurring Progressive implementation of selective
sulphide minerals contained in the rock. Rainwater waste placement and sealing.
moving through such material may become acidic Performance measurement to validate
and accumulate elevated levels of metals. This waste sealing design and implementation.
process, known as acid mine drainage (AMD), may
have significant potential to cause pollution if not All key technical teams at the Martabe Gold
properly controlled. Mine, including exploration, mine geology, mine
planning, TSF construction and environment have
AMD can be successfully managed by a number played an important part in the development
of methods, most commonly by sealing potentially of the site’s AMD management program. The
acid-forming rock so that the rate of oxygen results of this work have been documented in the
entry and hence the rate of acid production is Martabe Gold Mine AMD Management Technical
reduced to very low levels. Usually this sealing is Manual. This manual provides technical guidance
achieved by the use of compacted layers of rock for all aspects of waste rock management and
or clay. This is the strategy being successfully an overall framework for AMD management
implemented at the Martabe Gold Mine. Rock at the site. More detailed information on AMD
known to be potentially acid forming is sealed management at the site can be found in several
within the TSF embankment by up two meters of papers published on this topic.1
1.
Progressive rehabilitation — Martabe Gold Mine as a case study. 11th International Conference on Mine Closure, Perth.
A risk-based approach using process flow diagrams for operational waste rock classification — case studies. 11th International Conference on Mine Closure, Perth.
Progressive Management of AMD Risk During Construction of an Integrated Waste Storage Landform – A Case Study at Martabe Gold Mine, Indonesia. 13th
International Mine Water Association Congress. Finland.
Integrated life of mine waste characterisation, scheduling, placement planning and quality control to achieve progressive closure. 13th International Conference on
Mine Closure, Perth.

A view of the Martabe Gold Mine
TSF showing the embankment
under construction and
a broad tailings beach
extending to the center
of the impoundment
area with contained
water held to a
minimum.
To ensure that the site is implementing industry Ongoing progress in implementing the site’s AMD
best practice in the management of waste rock, management program in 2018 included:
the Company engages an AMD consultant with
The effectiveness of the waste rock sealing
broad international experience to review waste
strategy was confirmed by data from three
rock management at the site on an ongoing basis.
monitoring stations installed in the TSF
embankment. These results continued to
indicate very low levels of oxygen ingress
RESULTS ACHIEVED 2018 through sealing layer and no indication of
oxidation at depth in the embankment.
In 2017 a total of 6.0 million tonnes of waste rock
was placed in the TSF embankment without issue An ongoing QA/QC testing program
and all waste rock identified as potentially acid confirmed constructed sealing layers
forming was progressively sealed by compacted continued to meet required compaction
rock layers in accordance with the site’s AMD specifications.
management program.

In order to further investigate the A waste characterisation program for the

geochemical characteristics of selected Ramba Joring pit was completed.
waste rock types, “kinetic” tests were
A waste characterisation program for
established at site (involving the regular
the Tor Uluala deposit was commenced,
application of water to containers of waste
with 200 samples collected for detailed
rock and collection and analysis of the
geochemical analysis.
leachate).
A grade control program was continued for
The life-of-mine waste rock schedule was
the three operational pits (Purnama, Barani,
updated to include all four approved pits.
Ramba Joring), producing more than 1,000
The toe of the TSF was completed including samples per month for AMD testing.
a final layer of growth media on which was
A three month rolling waste schedule was
established rapidly growing cover crop
refined to ensure integration between the
species.
mine plan, waste rock production and the
A drilling program on the embankment was TSF embankment build plan. Waste rock
completed to provide samples for testing delivery is now embedded as a priority for
and validation of internal embankment mine planning and operations.
conditions.

MANAGEMENT OF HAZARDOUS
WASTES
GENERAL MANAGEMENT B3 waste management requirements
are included in the scope of the PTAR
APPROACH Workplace Condition Inspection (WCI)
[103-1] [103-2] [103-3] program.
Indonesian Law No. 32/2009 on Environmental A PTAR training course for B3 waste
Protection and Management defines hazardous management is available.
and toxic waste (“B3 waste”) as any waste that Key B3 waste management requirements
can cause pollution or harm the health of humans are presented in the site HSE Induction for
and other living organisms. Any party involved in new employees and are also addressed by
the placement, storage, transport or treatment of the site HSE poster program.
B3 waste must have a permit for these activities.
As is typical for all mines, the Martabe Gold Mine Any B3 waste non-compliances, and the
produces a range of waste types that classified status of contracts with B3 waste transport
under regulation as B3 waste, such as: and processing contractors, are reported
to senior management each month in the
Tailings. Environmental Compliance Report.
Waste oil and greases. Remaining capacity in the site’s temporary
Waste process chemicals. B3 waste storage facilities is reported at the
PTAR daily production meeting.
Used paint and chemical containers.
Batteries.
Computer and printer scrap parts. RESULTS ACHIEVED 2018
Medical waste from the site clinic. A total of 529 tonnes of site waste classified
as hazardous and toxic (B3) was produced at
PTAR has a permit for tailings placement in the the Martabe Gold Mine in 2018. All B3 waste
site’s TSF and permits for temporary B3 waste management requirements were implemented
storage facilities at site. With the exception without incident, including labelling, temporary
of tailings, all B3 waste is transported to a storage in permitted site facilities, and delivery to a
commercial off-site licensed waste processor. licensed waste processor for treatment.
Given the importance of B3 waste management, In support of more efficient management of

the Company has in place the following controls B3 waste, an additional three temporary waste
to ensure correct practices are followed: storage facilities were constructed and permitted
PTAR Code of Practice Waste Management in 2018. The Amdal Addendum approved in May
sets out mandatory requirements for B3 2018 describes the use of waste oil in blasting
waste management at site applying to all as is practiced at other mine sites in Indonesia.
PTAR and site contractor employees. This allows PTAR to implement this practice when
ready.

SITE WATER MANAGEMENT

GENERAL MANAGEMENT in a significant reduction of clean flow
available for downstream users.
APPROACH
[103-1] [103-2] [103-3] Waterways and local groundwater are
often important resources for local rural
Management of site runoff water is a common communities; typically utilised for irrigation
material aspect for open-cut mines in the wet tropics. and bathing, and sometimes as a source of
Several factors need to be taken into account in the domestic water.
development of mine water management systems so Downstream waterways often have
that the risk of non-compliances and/or downstream significant biodiversity values that need to
environmental impacts is minimised: be protected.
Surface mining typically exposes large
areas of soil and disturbed rock. Rainfall At the Martabe Gold Mine all of these factors are
on these areas will mobilise sediments and important.
sometimes metals and acidity, and site
runoff water may require treatment before
Site Water Balance Model
being released from the site.
Almost all mineral processing plants require The first step in successful water management
large amounts of water. This is especially at a mine site is a water balance model. This is a
true for gold mines where the process of key tool for developing a site water management
extraction is based on a rock slurry. strategy as well as specifying water management
infrastructure (such as ponds, structures, pumps
Pits and site infrastructure such as TSFs and piping systems).
can disrupt natural catchments and result
Erwinsyah Lubis and

Dahlia Hasibuan
(PTAR Environment
Department) monitor
the water quality at
a dissipater where
water from the
WPP flows
into the
Batangtoru
River.

The Martabe
View of
OUR APPROACH TO MANAGING FOR SUSTAINABILITYbeach
GoldatMine
TSF
Water
dam.
Polishing
Plant.
The Martabe Gold Mine uses a complex site Minimising the risk of non-compliant
water balance model for planning purposes releases from site (exceedances of water
that was developed by specialist consultants. quality limits prescribed by Ministerial
It is a “probabilistic” model, which means that Decree No. 202/2014).
it takes into account the wide natural variability
Minimising the risk of environmental
of local rainfall by running many simulations of
impacts on downstream waters, including
different storm events and integrating the results
protection of aquatic biodiversity.
to produce estimates of water accumulation for
given levels of likelihood. Ensuring continuity of raw water and
process water supply to the process plant
One key finding from water balance modelling sufficient to meet production needs.
done in the planning stage for the Martabe Gold Minimising water held in the TSF at all
Mine was that the site would have a net positive times.
water balance, meaning that water would need to
be discharged during operations. This important
Under the site water management system, runoff
outcome is discussed in the next section.
from the process plant area, the TSF embankment
and most areas disturbed by mining cannot
Site Water Management System directly leave the site but rather flows to the
TSF or to large water management ponds. This
In recognition of the importance of water arrangement provides for very good control over
management, the site operates a carefully the quality of water leaving the site.
designed water management system, the
operation which is prescribed by Code of Practice
Site Water Management. This system is operated
towards the following objectives:

View of the
Martabe Gold
Mine tailings
storage
facility.

Site Discharge A great deal of effort has been directed by

the Company to ensure that discharge from
Rainfall at the Martabe site averages the WPP meets compliance requirements
approximately 4,500 mm per year, more than at and avoids any significant environmental
many mines. Due to this high rainfall, the site impact in the Batangtoru River, and in keeping
has a net positive water balance, meaning that local stakeholders fully informed of ongoing
rainwater accumulates in the site’s tailings storage performance in this regard.
facility (TSF) and associated water management
structures during the rainy season. In order to As required, excess water from the TSF and water
maintain adequate freeboard at the TSF, excess management ponds is pumped to the WPP to
water must be released into the nearby Batangtoru remove contaminants. Ferrous sulphate is used
River almost continuously (following treatment in to remove metals, peroxide is used to destroy
the Water Polishing Plant). any residual cyanide, and flocculants are used to
Candra Siregar
(Environment
Department)
taking a water
sample in the
Batangtoru
River.

settle fine rock solids. Discharge to the Batangtoru RESULTS ACHIEVED 2018
River is fully permitted under Indonesian law
and is managed to meet water quality limits During 2018, water at the site was managed in
in Ministerial Decree No. 202/2014. To ensure accordance with the requirements of the site
ongoing compliance with these requirements, the water management system without significant
site implements an ongoing quality assurance incident. Key outcomes included:
program that includes water sampling at the
A record 17.4 m3 of water was discharged
WPP every two hours with analysis on-site by an
from the Water Polishing Plant in full
analytical laboratory. Duplicate samples are sent
compliance with the site’s discharge permit
to an off-site independent laboratory to ensure the
and Ministerial Decree No. 202/2014. This
accuracy of the test results.
maintained an unbroken record of discharge
compliance since commencement of
As a means of providing an independent
operations.
assessment of the management of discharge
to the Batangtoru River, the University of North For the fifth consecutive year, the Integrated
Sumatra has been engaged by PTAR to conduct Team established by Decision of the
a River Health Monitoring Program addressing Governor of North Sumatra provided
water quality in waterways receiving discharge independent verification of WPP discharge
or runoff water from the site. Under this program, compliance. The team supervised
water quality and aquatic life in the Batangtoru sampling of discharge each month in 2018
River is surveyed four times per year, at the point and participated in four quarterly public
of discharge into the river and also at locations meetings for the announcement of water
upstream and downstream of this point. This quality results.
monitoring program will be implemented over the
The University of North Sumatra continued
life of the mine.
to monitor the condition of streams and
rivers surrounding the site under a River
Given the public interest in discharge of treated
Health Monitoring Program that has been
water to the Batangtoru River, an independent
running since 2014. Under this program,
monitoring team was established in 2013
aquatic life at sites in the Batangtoru River
by Decree of the Governor of North Sumatra
was surveyed four times in 2018.
with the full support of PTAR. The role of this
team is to assess compliance with the site’s The Amdal Addendum approved in May
discharge permit by means of an independent 2018 included a risk assessment to support
water monitoring program. This team comprises an increase in maximum WPP discharge
representatives from local government, local rate of 10 percent. This will allow full
community and the University of North Sumatra, utilisation of the existing capacity of the
and results from this program are announced WPP once a new discharge permit is issued.
at public meetings held at the mine every three Equipment to allow continuous flow
months. monitoring was installed at a water quality
compliance point in the Aek Pahu stream
(located downstream of the TSF and
associated sediment ponds).

SITE REHABILITATION
GENERAL MANAGEMENT techniques for mines in the tropics are well
established and there are several mines in
APPROACH Indonesia that have successfully rehabilitated
[103-1] [103-2] [103-3] many hectares of mined area to tropical forest.
The activities required to return areas at the

PTAR is also committed to the implementation
mine to a safe, stable and productive state after
of progressive rehabilitation, meaning that land is
completion of mining is called rehabilitation.
rehabilitated as it becomes available, rather than
At the Martabe Gold Mine, the long-term goal
waiting for mine closure. In cases where a surface
of the site rehabilitation strategy generally is
is not yet ready for final rehabilitation, such as
restoration of a forest ecosystem similar to that
haul road batters, a temporary cover of legumes
previously disturbed (one of the reasons being
may be used to stabilise the site and minimise
the restoration of forest habitat). Rehabilitation
erosion due to rainfall.
Nurina Anindita
(PTAR Environment
Department)
at work in the
Martabe Gold
Mine plant
nursery.

The general steps in the rehabilitation of disturbed final surface areas being rehabilitated can yield
areas at the Martabe Gold Mine are similar to that dramatic improvement in the number of plant
at most other mines, namely: species present and seedling growth rates. This
benefit comes from topsoil containing seed and
Reshaping of the area to achieve a design
root stock of native species, bacteria involved in
slope.
the breakdown of plant organic material, and fungi
Installation of runoff control structures such that form associations with tree roots and assist
as contour drains. with nutrient uptake. Accordingly, soil from areas
Spreading of topsoil over the area. being cleared is stripped and stored in temporary
stockpiles for later use in the rehabilitation
Application of fertiliser.
program.
Spreading of seed (usually a mixture of
legumes).
Hand planting of tree seedlings. RESULTS ACHIEVED 2018
Ongoing maintenance including weeding During 2018, an additional 4.6 hectares of
and additional fertiliser applications. disturbed area was rehabilitated, increasing total
area rehabilitated to 18.3 hectares. An additional
To support the site rehabilitation program, a 31.0 hectares in total had been stabilised with
plant nursery has been established at the mine. cover crops by the end of the year. A total of
This provides an ongoing supply of native tree 3,640 seedlings were planted during the year, with
species for planting. Topsoil management is an 3,122 seedlings comprising 42 species available
important part of the site rehabilitation program. in the site nursery at the close of the year.
The placement of thin layers of topsoil over the

MINE CLOSURE
GENERAL MANAGEMENT Some water management infrastructure
including the WPP will remain operational
APPROACH for some years following closure to allow for
ongoing treatment of mine water until all sites
Following completion of mining and processing, with
are fully rehabilitated.
all mineable reserves having being utilised, disturbed
areas at the Martabe Gold Mine shall be returned To support closure activities, a small
to a safe, stable and productive state. This stage workforce shall be maintained at the site for
of operations is called mine closure. The closure some years after completion of operations.
strategy for the site is documented in an approved Also, the Company will maintain an
Mine Closure Plan (MCP), summarised as follows: environmental monitoring program at the site
until relinquishment.
Successful mine closure requires careful
planning based on a range of detailed
Mine closure requires significant funds, and there are
technical studies. These studies will be
examples around the world where mining companies
completed during operations according to
have completed operations with insufficient funds
closure study timetable reviewed and updated
remaining to properly implement mine closure. As
annually.
in many countries, the Indonesian government has
After completion of processing, the process implemented a system to address this risk. Under
plant and associated infrastructure such government regulation MEMR 18/2008, every mining
as offices and workshops will be removed. company in Indonesia must estimate mine closure
Residual chemicals will be collected for costs and pay an annual closure bond during operations
delivery to a licensed waste processor. to cover this expenditure. These funds become available
Concrete foundations will be broken up or for use by the company at mine closure.
covered with rock and soil.
The surface of the TSF embankment will be The value of the closure bond is based on a detailed
covered with layers of rock and soil and then estimate of mine closure costs documented in a
revegetated. After a period of drying and Mine Closure Plan (MCP). PTAR has an approved
consolidation the surface of the tailings beach mine closure plan for the Martabe Gold Mine, and is
will also be covered with layers of rock and soil implementing closure bond payments in accordance
and revegetated. The lowest part of the beach with the regulation. This plan shall be updated with
will be connected to a rock-lined drain to allow every significant expansion of activities at the site.
rainwater runoff to safely exit the structure. The original MCP for the site was submitted in 2014.
A revision taking into account the Ramba Joring
Mining of the various pits will be scheduled so and Barani pits and TSF expansion to RL 360 was
that as far as possible completed pits can be submitted in 2017.
backfilled with waste rock from active areas of
mining prior to final rehabilitation.
Potentially contaminated areas such as RESULTS ACHIEVED 2018
workshops and chemical storage areas will be
surveyed by soil sampling and remediated as Planning for mine closure was progressed with a
necessary prior to rehabilitation. second mine closure workshop conducted in June
Most haul roads and tracks will be ripped by 2017. This was the second of a planned program of
bulldozer and revegetated. The main haul annual workshops, and was attended by consultants
roads connecting the pits and the process and mine management. The scope of this meeting
plant area will be retained to allow ready included an update on the site’s AMD management
access for follow-up work and inspections. program and a detailed review of the current
mine plan, rehabilitation materials balance and
opportunities for back-filling of pits.

PROTECTION OF BIODIVERSITY
GENERAL MANAGEMENT addressed by PTAR Code of Practice Biodiversity
Management. This document operational controls
APPROACH required to minimise impacts on biodiversity
[103-1] [103-2] [103-3] including:
Biodiversity can be defined as the variability Minimisation of the area of disturbance.

amongst living organisms and the ecological Any clearing of vegetation at the Martabe
complexes of which they are a part. The importance Gold Mine must be approved under a Land
of protecting biodiversity is receiving increasing Access & Disturbance Request (LADR).
attention from the scientific community, the mining Restoration of habitat by rehabilitating
industry, financial institutions, government agencies disturbed areas to a tropical forest
and the general public. association similar to that of nearby
undisturbed forest.
All mining operations that disturb natural vegetation
Minimisation of any impacts on
will have some impact on biodiversity, at least
downstream waterways.
until the site has been rehabilitated. The disturbed
footprint of the Martabe Gold Mine is partly located Reporting of sightings of any threatened
within an area of natural forest, and although this fauna in the project area.
area is small compared to the total area of nearby
A ban on any fauna collection or hunting on-
forest, the management of impacts on biodiversity
site.
is an important issue for the Martabe Gold Mine.
The management of impacts on biodiversity is Hazardous waste disposal offsite.
Endar Siagian and Nur Afni

Harahap (Environment
Department)
monitoring sapling
growth in an
area of site
rehabilitation.

Although these measures will significantly RESULTS ACHIEVED 2018

mitigate impacts on biodiversity, the Company
commissioned studies to assess the feasibility of During 2018 there was no unauthorised clearing of
implementing a biodiversity offset for the Martabe vegetation at the site. Fauna and flora surveys were
Gold Mine. Biodiversity offsets are measures conducted as part of impact assessment studies
that protect or enhance biodiversity undertaken addressing the planned Tor Ulu Ala pit area.
specifically to compensate for unavoidable
biodiversity impacts associated with a project. For the second consecutive year, the Company
Often these offsets are located in a different continued sponsorship of a non-government
location to the project. conservation organisation (NGO) active in the
protection of endangered forest fauna in Sumatra.
Also, in December 2018 a decision was reached to
support a second NGO seeking funding for a tiger
conservation program in the Batangtoru Forest.
Ed Cooney (PTAR Director

Operations) and
Irwanto Situmorang
(PTAR Government
Relations) planting
a tree as part of
a reforestation
project in the
Batangtoru
area.

HEALTH AND SAFETY

GENERAL MANAGEMENT Job Safety and Environmental Analysis
APPROACH (JSEA)
[103-1] [103-2] [103-3]
JSEA is a team-based approach to planning work
so it can be done safely. It entails the step-by-step
At the Martabe Gold Mine there is no operational
breakdown of a job into activities, the identification
outcome more important than worker safety.
of hazards associated with each activity, and
Any accident is preventable, but it is also true
identification of the required controls to ensure
that mining operations contain many hazards
safety. The JSEA should be completed by the work
in a complex and varying work environment.
team immediately before the job is commenced
Minimising the risk of accidents at the Martabe
and each worker must sign it to confirm that they
Gold Mine requires consistent attention to three
understand the hazards and required controls.
basic factors, namely workplace condition,
worker competency, and worker behavior. These
are addressed by the PTAR HSE Management Permit to Work (PTW) System
System (see above). Under this system, the risk of
workplace accidents is addressed by a range of Permit to Work (PTW) systems are in common
operational controls, for example: use across the mining industry and are used to
ensure the safety of workers involved in the repair
or modification of machinery and equipment,
Golden Rules especially when the work is conducted in complex
and hazardous environments such as a process
The Martabe Gold Mine Golden Rules are simple
plant. A permit to work is an agreement signed
safety rules designed to protect workers from
by both the work crew and the area supervisor (or
the most common causes of serious accidents
permit issuer) which describes various controls for
in the mining industry. All people working at the
the protection of the workers against uncontrolled
Martabe Gold Mine receive training in the Golden
releases of energy (e.g. electricity, or liquids or
Rules before commencing work. These rules
gas under pressure). The PTAR PTW System is
are mandatory and an employee who knowingly
reflective of industry leading practice. One of the
breaches a Golden Rule and places himself or
key controls is isolation and lockout procedure,
others at risk faces a final written warning. The
which requires workers to place a personal danger
Golden Rules are supported by a training course,
tag and isolation lock on equipment to prevent it
pocket book, posters and a pictorial “comic book”.
from starting or moving unexpectedly.
Take 5
ASA Program
Take 5 is the simplest safety procedure at the
Many occupational accidents can be attributed in
Martabe Gold Mine. As the name suggests, it
part to unsafe behavior by the worker involved or by
takes less than five minutes to conduct a Take
those around them. This may range from failure to
5. It comprises a simple checklist that every
follow procedure, “taking shortcuts”, ignoring risk
worker should complete before starting a job,
or simply working without due care. At the Martabe
and is designed to assist a worker to identify
Gold Mine, unsafe behavior is addressed by the
hazards associated with the work and the required
Active Safety Agreement (ASA) program. An ASA
controls for the job to be done safely.
is a technique designed to encourage employees
to routinely consider the potential consequences
of their actions and the need to work safely, and
is based on a structured conversation initiated by

PTAR Emergency
Response Team
members practising
a spill response
drill at the SCM
yard.
managers with employees engaged in work. It is To minimise the risk of reoccurrence, it is

intended to promote “visible safety leadership” important to determine the causes of incidents
and participation in this program is mandatory for and implement appropriate corrective actions.
the site management team. Often the underlying causes of such events are
complex and not easily determined. Therefore,
a standard methodology is used at the Martabe
Incident Management
Gold Mine for the investigation of incidents,
Irrespective of the controls in place to minimise supported by training and the use of standard
risk, accidents or “near misses” will always forms. Incident management is supported by use
occur in a mining environment, caused by of a server-based incident management system
organisational, environmental and human factors. that facilitates initial reporting of incidents,
It is a requirement at the Martabe Gold Mine that email notification of the management team,
significant incidents are reported within 24 hours, implementation of incident investigations, and
including: tracking of corrective actions.
All work-related injuries or “near misses”.
In addition to minimising the risk of industrial
Work-related illnesses. accidents, PTAR works to eliminate the risk of
injury resulting from occupational exposures
Significant safety hazards.
to environmental hazards. The site implements
Vehicle accidents. an occupational health program focused on
Fires within the area of operations. addressing the risk of health impacts resulting
from exposure to excessive levels of noise,
Accidental chemical releases or improper dust and metals. Monitoring of environmental
storage of hazardous chemicals. hazards in the workplace is routinely conducted
Unapproved land clearing. by industrial hygiene staff as the starting point in
establishing engineering, procedural and personal
Any inoperable safety system, fire control protective equipment controls on workplace
system or pollution control equipment. exposures.

RESULTS ACHIEVED 2018 A major new safety initiative developed in 2018

was the Martabe Critical Control Program
New Safety Controls (MCCP). This initiative focuses on hazards often
associated with serious or fatal accidents in the
Development of the PTAR HSE Safety mining industry (below) and the key workplace
Management System continued in 2018, with controls necessary for eliminating such accidents.
the following additional Codes of Practice of MCCP is specifically designed to support the
relevance to Occupational Health and Safety being important role that front-line supervisors have in
released: ensuring safe work, and each supervisor will be
required to complete a number of Critical Control
Equipment Condition.
Checklists each month under this program,
Management of HSE Training Needs. commencing in January 2019.
Managing Work Restrictions for Pregnant
and Nursing Employees.
Monitoring and Managing Employee Health.
Scaffolding.
A mass casualty drill

at site involving the
PTAR Emergency
Response Team
and site clinic
medical
staff.

Contact with Fly rock and

Lifting operations Falling objects Fall from height electricity unplanned initiation
of explosive
Working on or Lightning Slope failure Uncontrolled Vevicle collision or

near water release of energy rollever
Exposure to
Vehicle impact on Confined spaces hazardous Rotating and Tree clearing and
person substances moving equipment chainsaw use
Symbols used in the Martabe Critical Control Program to indicate the presence of Major Safety Hazards in the workplace.
Lost Time Injuries

A key safety performance indicator in the mining By industry standards this was an outstanding
industry is Lost-time Injury Frequency Rate (LTIFR), result, and a continuation of the very low incidence
being the ratio of lost-time injuries per one million of Lost Time Injuries experienced at the site since
man-hours, calculated as a 12-month rolling commencement of operations.
average. In 2018 the site experienced zero Lost
Time Injuries, and LTIFR was also zero.
Total Lost Time Injuries (LTI) Lost Time Injury Frequency Rate (LTIFR)
No. LTIFR*
5 1.00
4 0.80
3
3 0.60
0.45
2 2
2 0.40 0.34
0.30
1
1 0.20 0.15
0 0 0.00 0.00
0 0.00
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
* Per one million man-hours

Putri Dian Kasih (McMahon
JV Administration Officer)
participates in a safety
awareness session for
the families of PTAR
employees and
contractors.
Safety KPI Dashboard Implementation of incident investigations to

determine the cause of incidents.
In order to motivate effort as well as recognise
results, PTAR measures safety management Implementation of corrective actions
performance by its Departments by means of a to minimise the risk of reoccurrence of
balanced set of safety key performance indicators incidents.
(KPIs). These are presented in a monthly report Full implementation of monthly
called the Safety KPI Dashboard (see below). Departmental HSE Committee meetings.
By the close of 2018, an aggregate safety KPI
Compliance with mandatory safety training
score of 95% was achieved for all Departments
requirements.
compared with a target of 90%. This reflected a
very high level of compliance with controls aimed Maintaining workplaces in good condition
at minimising the risk of incidents, including: as measured in a workplace inspection
program.
Participation of site management in the
Active Safety Agreement (ASA) program.

KPI December Performance Monthly Performance (red line indicates target)
Overall 100%
Performance 75%
(average of all 95% 50%
KPIs) 25%
0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Number of Lost 4
Time Injuries 3
100% 2
Number of 4
Overdue Incident 3
Investigations 95% 2
Number of 12
Overdue Incident 10
Corrective 8
6
Actions 93%
4
Number 12
Departmental 8
HSE Committee 100% 4
Meetings Held 0
Workplace 100%
Inspections - 75%
Average Score 96% 50%
Achieved 25%
0%
Q1-2018 Q2-2018 Q3-2018 Q4-2018
% Mandatory 100%
Safety Training 75%
Implemented 95% 50%
(actual versus 25%
target) 0%
% Active Safety 100%
Agreements 75%
Implemented 100% 50%
(actual versus 25%
target) 0%
Extract from the PTAR Safety KPI Dashboard showing aggregate scores for the site as of December 2018.

LOCAL & NATIONAL EMPLOYMENT

GENERAL MANAGEMENT RESULTS ACHIEVED 2018
APPROACH [102-8]
[103-1] [103-2] [103-3]
At the close of 2018, 74% of site workforce was
As a key measure to maintain the Company’s local hire. A further 24% were employed from other
social license to operate, and because it provides locations within Indonesia and 2% were expatriate
operational advantages, PTAR has committed hire.
to providing local communities with access to
employment opportunities at the Martabe Gold
Local Employment
Mine. Since the beginning of the project the Persons
Company has had the goal of at least 70% local 3,500 100%
workforce. Local employment is supported by 3,000

80%
70% 74% 74%
employee access to a wide range of training 2,500 67% 68% 68%
courses and opportunities for government 2,000

1,652 1,672
1,970 1,945 60%
1,594
certification in a range of skills including equipment 1,500 1,301
40%
operation. The Company also aims to maximise 1,000
20%
employment of its workforce from within 500
Indonesia. 0 0%
2013 2014 2015 2016 2017 2018

Total Local Employment % Local Employment
PTAR Employees - Employment Status by Region and Gender (2018)
Martabe Jakarta Male Female Total

Contract 51 4 43 12 55
Permanent 728 31 591 168 759
Total 779 35 634 180 814
PTAR Management and

Processing Operators
attend an Operators
certification
ceremony. Since
2015, a total of
76 operators
have been
certified.

GENDER DIVERSITY
GENERAL MANAGEMENT barriers. Some of the success relates to reviewing
and updating work practices, the workplace
APPROACH environment, and infrastructure.
[103-1] [103-2] [103-3]
A number of initiatives in support of gender
The Company has a Gender Diversity policy to
diversity have been embedded into the Company’s
enhance diversity and equality in all of its activities,
HR Policy framework. Examples include a
and has been active in implementing a Gender
Harassment Policy, more attractive maternity and
Diversity Program since 2016. A more diverse
paternity leave benefits, improvements to address
workforce will make PTAR a stronger company and
gender pay gap issues, and elimination of gender
provide a competitive advantage. The Company
bias in evaluation for promotion.
recognizes that each employee brings their own
unique capabilities, experiences and characteristics
Also, the Company is committed to the protection
to their work, and that diverse perspectives
of pregnant employees and their pregnancies
enhance organisational strength, problem solving
from workplace hazards through implementation
ability and innovation.
of controls laid out in PTAR Code of Practice
Managing Pregnancy Related Work Restrictions.
The key areas of gender diversity planning at PTAR
These controls support women remaining safely at
include:
work until delivery is imminent.
Increasing female participation rates in all
levels of the organisation. The target is to The Company engages the workforce regularly and
achieve 25% female workforce (employees consistently during the year to raise awareness of
and contractors), and 40% female gender diversity, including a week-long promotion
management of PTAR, by the end of 2019. and celebration of diversity leading into Kartini
Eliminating barriers to diversity by reviewing Day1 each year. Contractors are also supporting
work practices to ensure roles are gender the program with formal obligations and
neutral. commitments to achieving participation rates.
Workforce engagement and alignment to

develop a more inclusive culture.
Policy and training to ensure the Company
Human Resources framework supports In 2018 the Company’s total workforce comprised
gender diversity, for example removal 552 females (22%). Within the PTAR workforce,
of gender pay gap issues, and practical a total of 28% of superintendents and managers
policies to support diversity. were female. The recruitment process was
reworked to ensure a stronger focus on lifting the
Leadership accountability and commitment
participation rates towards the targets in coming
for the success of the Gender Diversity
years.
Program.
In 2018, special initiatives in support of gender
PTAR has examined some of the structural diversity included management workshops, career
barriers to diversity in the workplace and has set planning workshops, and free testing of employees
upon a progressive approach to removing these for cervical and breast cancer.
1.
Kartini Day is an Indonesian public holiday to celebrate the contribution of Raden Adjeng Kartini to the empowerment and education of women in Indonesia.

EMPLOYEE DEVELOPMENT
GENERAL MANAGEMENT Most of this training is delivered on-site, and most
of the course materials have been developed by
APPROACH PTAR so as to best meet employee needs. PTAR
[103-1] [103-2] [103-3] employee training and assessment records are
managed through an on-line training management
Most of the people commencing employment at
system. Safety training is critical to preventing
the Martabe Gold Mine have no prior experience
accidents, and while the Company provides many
of work in a mining or industrial environment.
types of safety training, there is a core group of
Training and development of employees is
safety competencies that is mandatory for all
therefore critical to the ongoing success of the
employees at the site.
Martabe Gold Mine. The training delivered to PTAR
employees and site contractors is of four main
types:
Health, safety and environment training.
Personal development training. The Company’s commitment to employee
development was maintained in 2018. A total
Technical skills training. of 161 training courses were delivered by PTAR,
Training for licenses to operate vehicles and with average hours of training for non-staff and
equipment. general staff totalling 44 and 56 hours respectively.
Given the importance of employee safety, a large
proportion of the training delivered was safety
training. Implementation of Mandatory Safety
Training at the close of 2018 was 95%.
Ahmad Ma’sum
(Mobile Equipment
Trainer) and
Irfa Zuhairiah
(Manhaul
Operator) in
a practical
training
session.

COMMUNITY DEVELOPMENT
GENERAL MANAGEMENT Scope
APPROACH The Company’s support for community
[103-1] [103-2] [103-3] development is focused on 15 villages spanning the
sub-districts of Batangtoru and Muara Batangtoru
Community development is a process designed categorised as Directly Affected Villages (DAVs).
to create conditions of economic and social These communities are characterised by a range of
progress for a community as a whole, with its socioeconomic challenges including low education
active participation and initiative. Community levels, high unemployment, limited access to health
development programs are common in the mining care, and dependence on agriculture as a source of
industry, particularly where mining operations wealth generation.
are located in rural or remote areas where local
communities have limited access to public
services. PTAR is committed to community
Guiding Principles
development programs that ensure its most PTAR has defined guiding principles for the
important stakeholders benefit directly from delivery of community development reflective of
operation of the Martabe Gold Mine. the Company’s Core Values. These form the basis
for the design and implementation of community
development and relations programs by the
company, and can be used to manage stakeholder
expectations:
PTAR Community Development Guiding Principles
Empowerment PTAR community development programs must be aimed at promoting community

empowerment and ensuring that there are processes in place to improve individual, group
and community capacities to make purposeful choices and transform these choices into
desired outcomes.
Good Governance Community development programs must be properly managed to ensure accountability,
transparency, responsiveness, effectiveness, efficiency, equitability and inclusiveness.
Sustainable Development PTAR community development programs must deliver benefits to stakeholders after mine
closure.
Stakeholder Values An introduction to the history, culture and socioeconomic status of local communities
around the Martabe Gold Mine.
Strategy and Framework The United Nation’s Sustainable Development

Goals.
The Company’s community development strategy
is documented in a Community Management Plan The International Council on Mining and Metals
(CMP) that addresses community development (ICMM) Community Development Toolkit.
planning over the period 2016 to 2020. This plan The International Finance Corporation (IFC).
references a range of international guidelines and
Strategic Community Investment Handbook.
protocols, including:
ISO 26000 (a management framework for
companies implementing social responsibility).

The Vision and Mission and Goals for the PTAR community development program are as follows:
Vision
To improve livelihoods through sustainable development and respect for local cultures, wisdom and
values.
Mission
To further empower local communities by initiating programs that deliver sustainable and beneficial
outcomes.
Goals
PTAR community development programs must deliver benefits to stakeholders after mine closure.
Based on local socioeconomic factors, stakeholder consultation, special studies and industry
benchmarking, the CMP targets five main program areas for delivering support to our local communities.
These are: economic development, education, health, community relations and infrastructure support.
The goals and contributing elements of the CMP are summarised as follows:
Program Area Goals Elements
Economic Developing the local economy Increased diversification and productivity of agriculture.
Development by supporting income
diversification. Increased number and capacity of local suppliers and
contractors.
Development of vocational skills.
Education Improving access to high- Improved quality and accessibility of education infrastructure
quality education. and facilities.
Improved quality of education delivery and management.
Increased student participation, achievement and

competitiveness.
Health Improving the quality of Improved quality of community services.

community health.
Promotion of healthy life behaviours.
Improved prevention of infectious and non-communicable

diseases.
Community Promoting trust and respect Increased awareness of PTAR operations

Relations between stakeholders and
PTAR. Appropriate management of stakeholder concerns and
grievances regarding PTAR operations
Respect, appreciation and preservation of local wisdom.
Infrastructure Supporting infrastructure Improved accessibility and availability of facilities supporting

development that contributes to social and economic activities.
quality of life.
Improvement of public and government facilities.
Improved accessibility and quality of sanitation and hygiene

infrastructure.

Batang Toru senior
citizens commemorate
National Elderly
Day 2018 at the
Batangtoru
Health
Centre.
RESULTS ACHIEVED 2018 Health

The Company maintained a very active community Continuation of support for a free cataract
development program in 2018, ensuring that all surgery program for local people in
local stakeholders continued to benefit directly partnership with A New Vision and the
from operations at the mine. The Company District Military Area Command. A total of
provided $1.25 million in support of programs 7,131 people have received surgery under
targeting the key areas of health, education, local this program since commencement in 2011.
business development and public infrastructure.
Visits to villages for the delivery of free
Community Development assistance was
health services such as infant health
focused on the continuation of existing programs,
checks, pregnancy examinations, and
summarised as follows:
treatment of common diseases.

Provision of gymnastics classes for the A Healthy School Competition involving
elderly in local villages. kindergartens, elementary schools and high
schools.
Monthly visits by staff to village Health Care
Clinics (Posyandu) to provide supplies and Support for Global Handwashing Day
assist in delivery of services. including delivery of coaching in clean and
healthy living at some schools and the
Support for Tuberculosis Program
provision of handwashing facilities.
community volunteers and a person
recovering from tuberculosis. Commemoration of World AIDS Day in
collaboration with the District Health Office
Support for malnutrition recovery treatment
of South Tapanuli.
for an infant.
Continuation of a Healthy Teenagers
Training for 35 government health staff in
Development Program.
General Emergency Life Support.

Tim Duffy, Ed Cooney
and Pramana
OUR APPROACH TO MANAGING FOR SUSTAINABILITY
Triwahjudi (PTAR
Management)
visit an
elementary
school in
Batang
Toru.
Education Provision of 50 scholarships for local

children under the ongoing Martabe
Continued support for community “reading Prestasi scholarship program.
gardens” in 14 villages. Donation of computers to several
Donation of 829 books to a library at Sopo schools.
Daganak (a large community amphitheatre Continuation of support for a government
in Batangtoru constructed with support school improvement program.
from PTAR).
Support for a Kartini Day celebration
Delivery of capacity-building training for involving participation of approximately
local school headmasters. 600 girls and women.
Funding of activities in support of World Delivery of capacity-building training for
Environment Day, such as the planting of a members of the Martabe Consultative
thousand trees in one village. Committee (LKMM).

Agus Sudono (Supervisor
PTAR Community
Development) participates
in sowing rice at
Sipenggeng Village.
This rice growing
improvement
project has been
supported for
three years
by PTAR.
PHOTO TO BE ADDED
Local Business Development Support for the production of various crops

and fruits, and horticulture demonstration
Procurement of local goods and services to plots in various local villages.
the value of $11.42 million. Support for paddy breeding and cultivation
Financial management training for local projects.
suppliers and contractors. Support for fish farming in various local
Support for the establishment of five new villages.
village cooperatives including training for
their managers.

Edi Irawan (Marsada Jaya
Bersama Cooperative)
processing rice at
Batuhula village with
equipment donated
by PTAR under
a community
development
project.
Public Infrastructure Repair of the Pulo Godang hanging bridge.

Village road improvements.
Construction and renovation of public
bathrooms in various villages. A rice processing facility.
Renovation of public health clinics Mosque and church renovations.

(puskesmas) in various villages. Construction of an office for local
Construction of clean water facilities in two government use in Batangtoru.
villages.

Linda Siahaan (PTAR Director
External Relations) and Kristin
Abierta (PTAR Superintendent
Administration) assisting
a recipient of free
cataract surgery
in a community
health program
supported by
PTAR since
2011.
Community Relations
In 2011, PTAR commenced support for a free
cataract surgery program for local communities
Providing site tours to 1,077 people to
in collaboration with NGO A New Vision and
explain operational aspects such as water
the TNI District Military Area Command.
management.
This program, which is run annually, includes
Emergency assistance for flood affected socialisation of cataract information, screening
communities. of applicants, cataract surgery and post-
Distribution of food packages and other operative care. In 2018, 842 patients received
supplies to 1,092 elderly people at the end cataract surgery under this program, bringing
of Ramadhan. the total number of local people receiving
operations over the seven years since program
commencement to 6,200. The cataract
operations have recorded a 100% success rate,
with recipients ranging in age from eight months
to 108 years. Restoring site not only brings
significant benefit to the recipient, but helps
alleviates poverty by allowing many recipients
and caregivers to return to regular work.

SUSTAINABILITY MILESTONES
2000 2001 2004 2005 2008 2009 2010 2011
Environmental First aquatic and Feasibility design First air and First site water First PTAR Commencement Detailed
scoping study. terrestrial for the TSF. noise studies. balance study. Environmental of “PTAR Goes to waste rock
ecology studies. Policy. School” program. characterisation
First rainfall and First stakeholder study completed.
First local river flow studies. analysis study. First PTAR
social - Community Free cataract
economic study. First waste rock 25 environmental Policy. surgery program
characterisation studies and 13 commences.
testwork. social studies First Community 1,011 people
completed. Development treated.
First community Plan.
health survey. Martabe Gold First
Mine Amdal First Reading Sustainability
approved. Garden Policy.
established.
Tona
Nadenggan,
monthly
publication
for stakeholders,
commences.
Commencement
of healthcare
program for
mothers and
children.
ENVIRONMENTAL
SOCIAL
GENERAL

2012 2013 2014 2015 2016 2017 2018
Detailed water Independent Approval of first GPMB CSR First organic A record number of people For the sixth consecutive
balance model Monitoring Team Mine Closure Awards. farming project. from local communities year, the Integrated Team
established. established by Plan. are employed at the established by Decision
Decree of the Batangtoru Grand Mosque Martabe Gold Mine, of the Governor of
USU commences Governor of First reclamation health clinic completed. totalling 1,852 persons, or North Sumatra provides
the River Health North Sumatra. guarantee completed. 74% of all employees. independent verification
Program. approved. Hanging bridge of WPP discharge
First WPP completed. A major public compliance.
Commissioning discharge permit First Blue infrastructure project,
approval for approved. PROPER Rating. Fire truck the Sopo Daganak public An updated mine closure
WPP discharge donation. auditorium in Batangtoru, plan is submitted to
received. First tailing Commencement is completed with funding government for approval.
placement of biodiversity Community from PTAR.
permit approved. offset studies. Management Zero lost time injuries
Plan Environmental and social across the entire site
Creation of LKMM, A total of completed. impact studies in support workforce, a safety
a consultative 9.6 hectares of the Tor Uluala prospect performance on par with
group representing rehabilitated. Barani Amdal are completed. the best results seen in the
local villages. Addendum mining industry.
Detailed approved. As part of the Company’s
First fish farm Gender Diversity Program,
waste rock Launch of an innovative
project commenced. 93 percent of PTAR
characterisation program addressing
and waste rock employees attend gender major safety hazards in
PTAR supports diversity training, and
sealing studies. the workplace, called the
the inaugural changes to the Company’s Critical Controls Program.
Tapanuli Selatan recruitment process
Ambulance
Cultural Festival.
donated to local result in 39 percent Ongoing implementation of
community. of recruitments being the Company’s Gender
First community
female. Diversity Program supports
water supply
Local a record 28% of PTAR
project.
employment superintendents and
passes 68%. manager roles being filled
Commencement
of community by women.
Community
visits to site.
health Approval of an Amdal
study completed. Addendum addressing
People receiving
free cataract surgery a range of operational
Stakeholder improvements and mining
passes 3500.
study of the Tor Uluala deposit.
Third-party gap completed.
assessment against
the Equator Principles Fiscal and
reports that the economic impact
“Martabe Gold study completed.
Project is in material
compliance with EP
requirements”.

Junior geologist
Renanda Sevirajati
(PTAR Exploration
Department)
conducts core
logging at
the Core
Shed.

LOOKING FORWARD

LOOKING FORWARD
LOOKING FORWARD
Sustainable development shall remain a key Release of a Biodiversity Strategy and
guiding principle for the management of the Implementation Plan which will lay out a
Martabe Gold Mine throughout operations and systematic framework for the management
into mine closure. Regardless of the Company’s of biodiversity impacts and risks associated
achievements in this regard, there will always with operation of the Martabe Gold
be opportunities for improvement, based on Mine. The purpose is to ensure that the
advances in scientific knowledge and industry Company’s biodiversity programs and
practice, operational experience and the needs operational controls are reflective of
and expectations of stakeholders. scientific knowledge and industry leading
In support of ongoing improvement in the practices and fully integrated within life-of-
implementation of sustainable development, the mine planning.
Company has identified a number of key goals for
Continued focus on providing employment
2019:
opportunities for local communities and
Further reduction in safety risk across the the implementation of gender diversity
Martabe Gold Mine, through ongoing effort initiatives to increase employment
across all aspects of safety management, opportunities for women in all levels of the
and specifically, through the implementation organisation.
of a new and innovative program addressing
Ongoing optimization of the operational
the risk of major safety hazards, called the
and financial performance of the Martabe
Critical Controls Program.
Gold Mine and continuation of an active
Continued support for local community exploration program with the aim of
development in the areas of education, supporting sustainable Company growth
health, community relations, local economic with benefits for all stakeholders.
development and infrastructure support,
Maintaining protection of the environment
with this support enhanced through the
and environmental compliance.
release of a Community Development and
Empowerment Master Plan addressing
The Company looks forward to reporting on
community development strategy and
progress in implementing these and other
planning throughout operations and into
outcomes in support of sustainable development
mine closure
in the 2019 Sustainability Report.

APPENDICES

APPENDICES
APPENDIX ONE: THE PROCESS APPLIED FOR DEFINING

REPORT CONTENT
INTRODUCTION identified 15 local villages as likely to be

affected in some way by construction and
As with PTAR’s previous sustainability reports, operation of the mine. These communities
this report has been drafted in accordance are called Directly Affected Villages (DAVs)
with guidance provided by the Global Reporting and together comprise the scope of the
Initiative (GRI). The Company’s first three current PTAR Community Management
sustainability reports were drafted with reference Plan (CMP).
to the GRI G-4 Guidelines. This report was drafted
Employees. At the close of 2018, 2612
with reference to the GRI Standards. Preparing a
people were directly employed at the
report with reference to the GRI Standards helps
Martabe Gold Mine, of which 74% live in
ensure that the report provides a full and balanced
local communities. Apart from the Martabe
account of the organisation’s significant impacts
Gold Mine, opportunities for permanent
on the economy, the environment, and society, and
employment in the local area are limited and
how these are being managed.
unemployment is relatively high.
If an organisation wants to demonstrate that Regulators. From the project stage,

their sustainability report is in accordance with government agencies at the regency,
the GRI Standards, it must declare how this has provincial and national levels have been
been achieved. This is the purpose of this section. significant stakeholders of the Martabe Gold
Beyond basic reporting requirements such as Mine through involvement in a wide range
clarity and accuracy, the key content requirements of processes and activities. These include,
under the GRI Standards are laid out in the for example, issue and administration of
following Reporting Principles for defining report the Contract of Work, AMDAL assessments,
content: issue and administration of environmental
approvals and permits, administration of
Stakeholder Inclusiveness
royalty and company taxes, site inspections,
Sustainability Context incident investigations, compliance audits,
and assessment processes such as the
Materiality
PROPER program.
Completeness
Local Government. The Regency and
Provincial governments are important
The following sections explain how these
stakeholders of the Martabe Gold Mine for
Standard Reporting Principles have been met in
a range of reasons. They are the elected
this report.
representatives of local communities
around the mine, they are recipients of
fiscal benefits from the Company, they
STAKEHOLDER have accountabilities in regards to the
INCLUSIVENESS issuing of approvals and permits and the
[102-40] monitoring of compliance with the same,
and Company community development
Key stakeholder groups for the PTAR and the programs are developed in consultation
Martabe Gold Mine include: with local government in support of
Directly Affected Villages (DAVs). The community services such as health care
AMDAL for the Martabe Gold Mine and education.

APPENDICES
Under the GRI Standards, sustainability reporting These are defined as the organisation’s
should take into account the reasonable activities associated with significant economic,
expectations and interests of its stakeholders. environmental and social impacts; or that
As described under Materiality below, an initial substantively influence the assessments and
list of material topics was compiled in 2014 decisions of its stakeholders. Reporting should
based on information collected through many enable stakeholders to assess the organisation’s
forms of stakeholder engagement conducted performance in managing these impacts.
by the Company since commencement of the
project. In the same year, this list was validated by A multi-staged approach has been applied in
consultants against Company records. determining the material topics to be included in
PTAR’s sustainability reporting, as follows:
In 2014, the Company began this process by
SUSTAINABILITY CONTEXT listing the aspects of its operations already
identified as being of particular interest or
PTAR has only one operational site, and the scale
concern to its stakeholders through many
of the Martabe Gold Mine is small compared to
forms of stakeholder engagement since
surrounding land uses. Environmental and social
project commencement. This took into
impacts resulting from operations at the site,
account both actual and potential impacts,
both positive and negative, are not significant
with particular emphasis on those impacts
at a regional or national level. However, where
relevant to local communities around the
data is available to the Company, sustainability
Martabe Gold Mine. This preliminary list
performance has been compared with local or
of material aspects, was independently
national data, or placed in context with mining
validated by consultants against Company
industry practice generally. Examples include:
records of stakeholder engagement.
All-in Sustaining Cost (AISC) of gold
To ensure materiality from a broader
production.
perspective, this list of material topics
Fiscal contributions. was then compared with topics commonly
included in sustainability reporting
Local employment.
for mining companies in general. The
Community Management Plan (CMP). Sustainability Topics for Sectors: What
Lost-time Injury Frequency Rate. Do Stakeholders Want to Know? guide
produced by GRI Research and Development
Minimum wage.
was utilised for this purpose.
PTAR HSE management system.
This work produced an extensive list of
PTAR Sustainability Policy. material topics and groupings. This list was
then prioritised by ranking each topic in
Acid mine drainage (AMD) management
terms of importance from the perspective
program.
of both stakeholders and the Company. This
Design and operation of the Tailings Storage ranking was then presented to Company
Facility (TSF). executives for review and approval. From
this process, the material topics for the
Company were identified as:
MATERIALITY Economic benefit.
[102-46] [102-49] [103-1] Environmental Compliance.
Disposal of tailings.
The GRI Standards require that sustainability
reporting addresses an organisation’s material Disposal of waste rock.
topics (formerly known as material aspects). Site water discharge.
Site rehabilitation and mine closure.

APPENDICES
Biodiversity. Management of hazardous industrial

Occupational health and safety. wastes (“B3 wastes”) was added, given
the ongoing attention given to this issue
Local employment.
by government at district, provincial
Employee development.
and national levels, and the challenge in
Community development. ensuring ongoing compliance by both
Following determination of these material PTAR and site contractors.
topics, a company workshop was carried
out to identify the Indicators to be reported
for each topic. A total of 44 Indicators COMPLETENESS
from GRI-G4 Specific Standard Disclosures
were identified as relevant and able to be The GRI Standards require sustainability reports
reported, and on this basis were included in to include coverage of material topics and
the scope of the 2014 Sustainability report. their boundaries sufficient to reflect significant
As a separate exercise, General Standard economic, environmental, and social impacts, and
Disclosures were selected to meet the Core to enable stakeholders to assess the reporting
option of GRI-G4. organisation’s performance in the reporting
period. These requirements have been verified by
In 2015, this work was reviewed on
the Company as follows:
the basis of additional information on
local stakeholder concerns provided by
a stakeholder mapping study and an Material Topics
economic impact assessment. These
The completeness of the material topics
studies confirmed the selection of material
presented in this report has been verified by
topics applied to the 2014 Sustainability
comparison with several independent references:
Report, and for reasons of continuity, these
topics and their associated Indicators were Topics commonly included in sustainability
carried over into subsequent reports. reporting for mining companies in general.
The Sustainability Topics for Sectors: What
An additional material topic was included in
Do Stakeholders Want to Know? guide
the Company’s 2016 sustainability report,
produced by GRI Research and Development
namely greenhouse gas emissions, in
was utilised by consultants for this purpose
response to interest expressed by a loan
in 2014.
provider.
The significant environmental and social
Two additional material topics were
impacts identified in the Martabe Gold Mine
included in the 2017 report:
AMDAL and subsequent amendments.
Gender diversity was added, given the
Key environmental and social impacts
growing recognition of the importance
identified for the site in Environmental and
of gender diversity in maximising the
Social Due Diligence Report, Martabe Gold
potential of organisations, the poor
Mine (2017). This third-party study assessed
implementation of gender diversity in the
the site against the Equator Principles and
mining industry generally, and a decision
IFC Performance Standards for this purpose.
by the Company to commence a gender
diversity program in 2016.

APPENDICES
Boundaries The boundaries for the material topics described

in this report are generally limited to the local area
Under the GRI Standards, the topic Boundary around the Martabe Gold Mine, including 15 local
is a description of where the impacts occur villages assessed as “Directly Affected” and local
for a material topic, and the organisation’s waterways receiving mine water discharge. One
involvement with those impacts. Organisations key exception is logistics activities, in particular,
might be involved with impacts either through the transport of dangerous goods to site from
their own activities or as a result of their suppliers, and the transport of B3 waste from
business relationships with other entities. An site to licensed waste processors. Although
organisation preparing a report in accordance PTAR does not directly manage these activities,
with the GRI Standards is expected to report not and legal liability for any incidents rests with the
only on impacts it causes, but also on impacts it contractor involved, the Company does exert
contributes to, and impacts that are directly linked some control over the activities and associated
to its activities, products or services through a risk management through contractual conditions.
business relationship. Other exceptions include fiscal benefits and
employee benefits, both with significant positive
impacts away from site.
SUMMARY OF MATERIAL TOPICS AND BOUNDARIES

[102-47]
The following table summarises the preceding discussion on material topics and their boundaries for
PTAR sustainability reporting.
Material Topics and Boundaries Applied to this Report
Material Topic Main Class of Impact Boundary1
Environmental compliance Environmental Local
Disposal of tailings Environmental Local
Disposal of waste rock Environmental Local
Management of hazardous industrial wastes Environmental Local and Supply Chain
Protection of water resources Environmental Local
Rehabilitation & mine closure Environmental Local
Protection of biodiversity Environmental Local
Health and safety Social Local
Local employment Social Local
Gender diversity Social Local
Employee development Social Local
Community development Social Local
Fiscal and economic benefits Economic National

APPENDICES
CORE AND COMPREHENSIVE Appendix 3 contains a matrix that maps the

relationship between the contents of this report
REPORTING OPTIONS and the requirements for reporting against
With regards to reporting content, the GRI GRI Universal Standards and Topic Specific
Standards allow organisations to choose Standards.
between two in accordance options, Core or
Comprehensive, based on which best meets
their needs and those of their stakeholders.
REPORTING PERIOD
These options do not relate to the quality of the
[102-50]
report or to the performance of the organisation,
but simply reflect the degree to which the GRI Information on the material topics for the 2018
Standards have been applied. In this report, reporting period is presented in this report at
as for previous reports, sufficient information Our Approach to Managing Sustainability and
has been reported to substantively meet the Results Achieved 2018. Appendix 2 presents
requirements of the Core option. The Core a complete set of 2018 data in support of the
option contains the essential elements of a selected specific disclosures for each material
sustainability report and provides the background, topic, together with data from earlier years for
against which an organisation communicates its comparison.
economic, environmental, social, and governance
performance and impacts.

APPENDICES
APPENDIX TWO: GRI STANDARDS PERFORMANCE

INDICATOR DATA TABLES
Performance Indicator Unit 2016 2017 2018
CATEGORY: ECONOMIC
ASPECT: ECONOMIC PERFORMANCE
201-1 : Direct Economic Value Generated and Distributed
Total Economic Value Generated USD ‘000 426,440 484,438 574,197
Total Economic Value Distributed USD ‘000 335,108 383,038 426,091
Total Operating Costs USD ‘000 254,934 274,860 269,366
Wages and Benefits Paid USD ‘000 26,487 28,563 29,018
Community Investments USD ‘000 1,233 1,771 1,308
Expenses to Government USD ‘000 52,454 77,844 126,399
Royalties USD ‘000 2,390 2,698 21,300
Taxes USD ‘000 48,496 73,745 103,419
Others USD ‘000 1,568 1,401 1,680
Total Economic Value Retained USD ‘000 91,332 101,400 148,106
NOTES:
- Total Economic Value Retained = Economic Value Generated - Economic Value Distributed.
- Amounts include revenues and costs determined on an accruals basis, consistent with the audited financial
statements.
- Operating costs related to expense recognised in the financial statements. They exclude employee wages and
benefits, payments to governments and community investments.
- Dividends totalling of USD 7,709,200 were paid to PTAR’s non-controlling shareholders in 2018.
201-2 : Financial Implications, Risks & Opportunities Due to Climate Change

No significant impacts due to climate change have been identified for PTAR to-date.
ASPECT: MARKET PRESENCE

202-1 : Entry-Level Wage by Gender Compared to Local Minimum Wage
PTAR Male Minimum Wage vs. Local Minimum Wage. Ratio 1.0 1.0 1.0
PTAR Female Minimum Wage vs. Local Minimum Wage Ratio 1.0 1.0 1.0
NOTES:
- Data applies only for PTAR National employees.
202-2: Proportion of Senior Management Hired From the Local Community

Percentage Senior Management Local Hire % 3 7 7
NOTES:
- Senior Management is defined as Managers and above.
- Local is defined as residing in South and Central Tapanuli.

APPENDICES
ASPECT: INDIRECT ECONOMIC IMPACTS

203-1: Infrastructure Investments and Services Supported
Total Community Investment USD ‘000 1,233 1,770 1,308
Community Relations Investment USD ‘000 75 47 57
Community Development Investment USD ‘000 1,158 1,723 1,251
Health USD ‘000 269 281 261
Education USD ‘000 135 253 244
Local Business and Economic Development USD ‘000 209 199 133
Social and Cultural Identity USD ‘000 9 16 21
Community Support USD ‘000 133 158 110
Public Infrastructure: USD ‘000 403 816 482
Total Projects Number 47 48 34
Total Duration of Projects Days 2,044 2,515 1,824
NOTES:
- 2016: Converted from IDR, with USD 1 = IDR 13,454.
- Investments have been provided in the form of cash and in-kind. Pro bono contributions have not been included in
this table.
ASPECT: PROCUREMENT PRACTICES

204-1 : Proportion of Spending on Local Suppliers
Local % 7 10 6
National % 76 74 83
International % 17 16 11
NOTES:
- “Local suppliers” are those suppliers that are registered in South or Central Tapanuli.
- “National suppliers” are those suppliers registered elsewhere in Indonesia.
ASPECT: ANTI CORRUPTION

[103-1] [103-2] [103-3]
205-2 : Communication and Training Anti-corruption Policies and Procedures
Sign-off PTAR Code of Ethics and Business Conduct
All Employees number 734 780 796
Senior Management number 18 25 26
Staff number 670 710 722
% of Workforce % 99 99 99
Sign-off PTAR Suppliers Code of Conduct
Service Providers % 100 100 100
NOTES:
- Anti-corruption policies and procedures are described in the company’s Code of Ethics and Business Conduct.
- Clauses related to anti-corruption are included within the General Terms and Conditions for Suppliers.
- Anti-Corruption is covered during the HR Induction presentation. Employees are required to sign the Code of
Conduct as part of the HR Induction.

APPENDICES
CATEGORY: ENVIRONMENT
ASPECT: MATERIALS
301-1: Materials Used
Raw Materials
Ore tonne 4,840,116 5,353,388 5,572,308
Associated Process Materials
Process Reagents tonne 18,619 19,754 19,310
Grinding Media tonne 9,055 8,393 9,312
Oils and Lubricants tonne 43 38 43
Other Chemicals tonne 38 47 59
NOTES:
- All materials listed above are considered non-renewable (most residual material being lost the TSF).
301-2: Recycled Materials Used

Percentage of Input Materials that are Recycled % 0.02 0.01 0.01
NOTES:
- Worn mill liners are returned to the supplier for recycling.
ASPECT: WATER
303-1: Water Withdrawal by Source
Total Volume of Water Withdrawn Martabe Gold Mine m³/y 16,101,339 16,126,737 16,120,392
Surface water m³/y 0 0 0
Wetland m³/y 0 0 0
River m³/y 0 0 0
Lake m³/y 0 0 0
Ocean m³/y 0 0 0
Groundwater m³/y 101,339 126,737 120,392
Rainwater m³/y 16,000,000 16,000,000 16,000,000
Waste Water m³/y 0 0 0
Municipal Water Supply m³/y 0 0 0
Public/Private Water Utilities m³/y 0 0 0
NOTES:
- Rainwater input is as predicted for an average year based on site water balance modelling. It cannot be directly
measured.
- Groundwater withdrawal is metered.
303-2: Water Sources Significantly Affected by Withdrawal of Water

Reduction of Flow Aek Pahu Stream Due to Catchment m³/h 1,826 1,826 1,826
Interception by the TSF
NOTES:
- This is the average reduction of flow to the Aek Pahu stream as determined by site water balance modelling, and
represents water intercepted by the TSF and sediment ponds. This water is released to the Batangtoru River after
treatment at the Water Polishing Plant.
- The water source has no Protected Area Status.

APPENDICES

303-3: Water Recycled and Reused
Volume Water Recycled m3/h Up to 451 Up to 451 Up to 451
Percentage of Water Recycled % Up to 60 Up to 60 Up to 60
Volume Water Reused m /h
3
0 0 0
Percentage Water Reused % 0 0 0
NOTES:
- These are the percentages and total volume of water recycled by transfer from the TSF to the process plant for an
average year as determined by site water balance modelling.
ASPECT: BIODIVERSITY
304-1: Sites Owned Adjacent To Protected Areas or Areas of High Biodiversity Value
Number of Sites Owned, Leased, Managed in, or number 1 1 1
Adjacent to Protected Areas and Areas of High
Biodiversity Value Outside Protected Areas
Separation at Closest Point km 4 4 4
Size of Operational Site km2 3.90 4.60 4.79
NOTES:
- Site has nil subsurface and underground land.
- Mine footprint approximately 4 km at closest point to protected forest.
- The majority of the landscape within the mining footprint before construction was forest, degraded forest,
plantation, cleared land and tracks. Due to the close proximity of villages, townships and extensive plantation areas
the area had experienced significant previous disturbance including the presence of numerous walking tracks used
by workers to access rubber plantations.
304-3: Habitats Protected or Restored

Total Area of Habitat Protected ha 0 0 0
Total Area of Habitat Restored ha 0 0 0
NOTES:
- Areas that have been rehabilitated on-site are not yet fully restored.
ASPECT: EMISSIONS
305-1: Direct GHG Emissions
Total Direct GHG Emissions tonne CO2 eq 169,940 143,064 66,008
Fuel Consumption tonne CO2 eq 40,020 34,899 40,297
Electricity Consumption (Own Power Plant) tonne CO2 eq 99,030 87,747 1,935
Refrigeration Use tonne CO2 eq 3,997 4,920 5,609
Chemicals Use tonne CO2 eq 3,876 4,068 4,048
Blasting tonne CO2 eq 434 367 470
Land Clearing / Revegetation tonne CO2 eq 22,583 11,064 13,649
NOTES:
- Based on data from the Martabe project.
- The IFC Carbon Emissions Estimation Tool 2014 was used to calculate the GHG emissions.
- For fuel and electricity consumption the following gasses were included: CO2, CH4, N2O.

APPENDICES

305-2: Energy Indirect GHG emissions
Total Energy Indirect GHG Emissions tonne CO2 eq 2,761 2,988 125,228
Electricity Purchased From PLN tonne CO2 eq 147 164 122,667
Domestic and International Flights tonne CO2 eq 2,614 2,824 2,561
NOTES:
- The IFC Carbon Emissions Estimation Tool 2014 was used to calculate the GHG emissions, meeting the “location
based” component of GRI Standards GHG reporting.
305-3: Other indirect GHG Emissions

Other Relevant Indirect GHG Emissions Identified number 0 0 0
NOTES:
- NA
305-4: GHG emissions intensity

Overall GHG Emissions intensity tonne CO2 eq 555 411 466
per 1000 oz Au
Total GHG Emissions tonne CO2 eq 172,701 146,052 191,236
Total Direct GHG Emissions tonne CO2 eq 169,940 143,064 66,008
Total Energy Indirect GHG Emissions oz Au tonne 2,761 2,988 125,228
CO2 eq
Total Gold Produced oz 311,000 355,000 410,000
NOTES:
- Calculated based only on gold production (excluding silver).
ASPECT: EFFLUENTS & WASTE

306-1: Water Discharge by Quality and Destination
Total Planned Water Discharges m³/ annum 16,283,517 14,666,974 17,405,748
Water Polishing Plant (WPP) to the Batangtoru River m³/ annum 16,283,517 14,666,974 17,339,551
Site Sewage Treatment Plant to Aek Pahu Stream m³/ annum N/A N/A 66,197
NOTES:
- Discharge from the Water Polishing Plant is fully permitted under Indonesian law.
- Discharge from the site Sewerage Treatment Plant is fully permitted under Indonesian law.
- All water is discharged into natural waterways rather than being directly provided to other parties for use.
- Volumes shown are metered volumes.
- Release of general site runoff water is not included in the above table.

APPENDICES

306-2: Waste by Type and Disposal Method
Total Hazardous Waste tonne 473 522 529
Reuse tonne 0 0 0
Recycling tonne 0 0 0
Composting tonne 0 0 0
Recovery tonne 264 279 257
Incineration tonne 0 0 0
Deep Well Injection tonne 0 0 0
Landfill (Offsite) tonne 209 244 272
On-site Storage tonne 0 0 0
Total Non-Hazardous Waste tonne 1,619 1,532 1,613
Reuse tonne 0 0 0
Recycling tonne 0 0 0
Composting tonne 13 11 0
Recovery tonne 0 0 0
Incineration tonne 70 42 0
Deep Well Injection tonne 0 0 0
Landfill tonne 1,536 1,479 1,613
On-site Storage tonne 0 0 0
NOTES:
- On-site tailings disposal data is excluded, which is documented in MM3.
- A monthly tally of waste delivered from site is maintained by the Environmental staff. Off-site disposal is regulated
by contract. All hazardous waste is disposed by licensed waste disposal companies subject to regulation by
government.
Disclosure 306-3: Significant Spills

Total Number of Spills number 9 11 6
Total Volume of Spills litre 680 329 1428
Oil: Soil litre 225 78 118
Water litre 0 0 0
Fuel: Soil litre 244 230 305
Water litre 0 0 0
Waste: Soil litre 0 0 0
Water litre 0 0 0
Chemical: Soil litre 11 20 5
Water litre 0 1 0
Other: Soil litre 0 0 0
Water litre 200 0 1000
NOTES:
- All spills must be recorded in in the Company’s incident management system.
- No significant impacts resulted from spills that occurred, and all spills were fully cleaned-up. The 1000 L of spill
recorded under “Other” in 2018 was non-toxic drilling mud.

APPENDICES

Disclosure 306-4: Transport of Hazardous Waste
Weight of Transported, Imported, Exported, or Treated Waste Deemed Hazardous
Transported tonne 473 522 529
Imported tonne 0 0 0
Exported tonne 0 0 0
Treated tonne 0 0 0
Shipped Internationally % 0 0 0
NOTES:
- All waste identified under regulation as hazardous or toxic (B3) waste is transported off-site to a licensed waste
processor.
306-5: Water Bodies Affected by Water Discharges and/or Runoff

Identified Water Bodies and Related Habitats that are Significantly Affected by Water Discharges and/or Runoff
Water Body and Related Habitats Number 0 0 0
Size NA NA NA NA
Protected Status NA NA NA NA
Biodiversity Value NA NA NA NA
NOTES:
- Impacts on receiving waters are assessed by means of an independent monitoring program conducted by the
University of North Sumatera.
CATEGORY: SOCIAL-LABOUR PRACTICES AND DECENT WORK

ASPECT: EMPLOYMENT
Disclosure 401-1: New employee hires and employee turnover
Total Number and Rates of New Employee Hires and Employee Turnover by Age Group and Gender
Total New Hires number 97 90 52
Male number 83 55 29
Female number 14 35 23
Age <30 number 27 43 21
Age 30-50 number 53 42 30
Age > 50 number 17 5 1
Local number 35 33 21
Non-Local number 62 57 31
Hiring Rate % 13 11 6
Male % 11 7 4
Female % 2 4 3
Age <30 % 4 5 3
Age 30-50 % 7 5 4
Age > 50 % 2 1 0.1
Local % 5 4 3
Non-Local % 8 7 4

APPENDICES

Total Turnover number 71 48 48
Female number 9 6 10
Age <30 number 15 11 8
Age 30-50 number 40 30 31
Age > 50 number 16 7 9
Local number 24 10 8
Non-Local number 47 38 40
Turnover Rate % 9 6 6
Male % 8 5 5
Female % 1 1 1
Age <30 % 2 1 1
Age 30-50 % 5 4 4
Age > 50 % 2 1 1
Local % 3 1 1
Non-Local % 6 5 5
NOTES:
- Rates are calculated as: total number of employees in the given category at the end of the year divided by total
employees at the end of the year.
401-2: Benefits Provided to Full-Time Employees Not Provided to Temporary or Part-Time Employees
NA N/A N/A N/A N/A
NOTES:
- PTAR does not have part-time employees.
- Benefits provided to full-time employees include: life insurance; health care; disability & invalidity coverage; parental
leave (maternity leave); retirement provision.
401-3: Parental Leave

Return to Work and Retention Rates After Parental Leave
Entitled to Parental Leave number 134 163 181
Parental Leave Taken number 12 22 19
Return to Work After Parental Leave number 12 22 19
Still Employed Twelve Months After Return to Work number 12 22 19
Retention Rates After Parental Leave % 100 100 100
NOTES:
- NA

APPENDICES
ASPECT: OCCUPATIONAL HEALTH & SAFETY

403-1: Workforce Represented in Formal Joint Management–Worker Health and Safety Committees
Number of Workforce Represented Number 570 633 641
Percentage of Total Workforce Represented % 75 80 79
NOTES:
- Numbers correspond to PTAR employees from departments that have H&S Committees.
- Percentage is the ratio between number of employees represented and the total PTAR employees.
403-2 : Injuries and Occupational Diseases, Lost Days, Absenteeism, Work-related Fatalities
For Employees (Total employees + supervised workers)
Type of Injuries
First aid Injuries number 23 16 15
Female number 5 1 4
Total Lost Time Injuries (LTI) number 0 0 0
Male number 0 0 0
Female number 0 0 0
Total Medical Treatment Injuries (MTI) number 6 8 5
Male number 6 8 4
Female number 0 0 1
Total Recordable Injuries (TRI) number 6 8 5
Male number 6 8 4
Female number 0 0 1
Injury rate (IR) Per Million 2.84 3.63 2.21
Man-Hours
Male Per Million 3.45 4.57 2.27
Man-Hours
Female Per Million 0.00 0.00 2.00
Man-Hours
Occupational Disease Rate (ODR) % 0 0 0
Male % 0 0 0
Female % 0 0 0
Lost Day Rate (LDR) % 0 0 0
Male % 0 0 0
Female % 0 0 0
Absentee rate (AR) % 0.54 0.58 0.44
Male % 0.54 0.60 0.37
Female % 0.51 0.55 0.68
Work-Related Fatalities number 0 0 0
Male number 0 0 0
Female number 0 0 0

APPENDICES

All Workers Excluding PTAR Employees (Independent Contractors)
First aid Injuries Number 17 20 13
Male Number 14 18 12
Female Number 3 2 1
Total Lost Time Injuries (LTI) Number 0 1 0
Male Number 0 1 0
Female Number 0 0 0
Total Medical Treatment Injuries (MTI) Number 3 15 13
Male Number 3 15 13
Female Number 0 0 0
Total Recordable Injuries (TRI) Number 3 16 13
Male Number 3 16 13
Female Number 0 0 0
Injury rate (IR) Per Million 0.75 3.41 2.83
Man-Hours
Male Per Million 0.89 4.15 3.55
Man-Hours
Female Per Million 0 0 0
Man-Hours
Lost day rate (LDR) Per Million 0 0.21 0
Man-Hours
Male Per Million 0 0.26 0
Man-Hours
Female Per Million 0 0 0
Man-Hours
Work-related Fatalities number 0 0 0
Male number 0 0 0
Female number 0 0 0
NOTES:
- Female and male man-hours used for rate calculations are estimated based on total man-hours and employee
gender ratio.
403-3 : Workers with High Incidence or High Risk of Diseases Related to Their Occupation
Workers With High Incidence of Occupational Diseases number 0 0 0
NOTES:
- NA
403-4 : Health and Safety Topics Covered in Formal Agreements with Trade Unions
Coverage of Health and Safety Topics in Formal % 100 100 100
Agreements with Trade Unions
NOTES:
- Data applies for PTAR employees.
- A Collective Labour Agreement is in place between PTAR and the Trade Union within the Organisation, which
includes relevant health and safety articles.

APPENDICES

ASPECT: TRAINING & EDUCATION
404-1: Average Hours of Training Per Year Per Employee
Average Hours of Training per Year per Employee
Average Training Time by Gender
Male hours 45 47 51
Female hours 33 37 48
Average Training Time by Employee Category
Managers & Above hours 31 33 47
General Staff hours 49 42 56
Non-Staff hours 40 50 44
NOTES:
- Only includes training delivered by the PTAR Training & Development Department. Does not include Department-
based training.
404-2: Programs for upgrading employee skills and transition assistance programs
Types of Training Delivered
HSE number 35 49 50
Mobile Equipment number 21 16 23
Role Specific number 23 32 87
Developmental number 7 6 13
Language number 6 4 2
NOTES:
- Transition assistance programs provided to assist employees in managing career endings are not included in the
above table.
404-3: Percentage of Employees Receiving Regular Performance and Career Development Reviews
Gender
Male % 100 100 100
Female % 100 100 100
Employee Category
Managers & Above % 100 100 100
General Staff % 100 100 100
Non-Staff % 100 100 100
NOTES:
- NA.

APPENDICES

ASPECT: DIVERSITY & EQUAL OPPORTUNITY
Disclosure 405-1: Diversity of governance bodies and employees
Percentage of Individuals within Governance Bodies, by Gender and Age Group
Total Percentage
Male % 89 89 88
Female % 11 11 12
Age <30 % 0 0 0
Age 30-50 % 50 33 29
Age >50 % 50 67 71
Percentage of Employees per Employee Category, by Gender and Age Group
Total Percentage
Male % 82 79 78
Female % 18 21 22
Age <30 % 22 23 20
Age 30-50 % 71 71 71
Age >50 % 7 6 9
NOTES:
- Percentage of employees per employee category, by gender and age group applies for all PTAR employees.
ASPECT: EQUAL REMUNERATION FOR WOMEN & MEN

405-2: Ratio of Basic Salary and Remuneration of Women to Men
All Employees % 90 91 96
All Staff (General Staff, Managers & Above) % 85 86 88
Non-Staff % 97 95 95
NOTES:
- Data applies for PTAR National employees. Gender pay gap reviews have been conducted and recommendations
implemented. Differences in remuneration generally exist as a result of differences in skills, experience and length of
service.
CATEGORY: SOCIAL - SOCIETY

ASPECT: LOCAL COMMUNITIES
413-1: Operations with Local Community Engagement, Impact Assessments, and Development Programs
Total Number of Operations number 1 1 1
Operations with Implemented Community Programs number 1 1 1
Percentage of Operations with Implemented Local % 100 100 100
Community Engagement, Impact Assessments and/or
Development Programs.
NOTES:
- This indicator is explained in the narrative of the report.
413-2: Operations with Significant Actual and Potential Negative Impacts on Local Communities
This indicator is explained in the narrative of the report.

APPENDICES
CATEGORY: MINING & METALS SECTOR - ENVIRONMENTAL

ASPECT: BIODIVERSITY
MM1: Land Disturbed and Rehabilitated
Total Disturbed Land at the Beginning of the Year ha 364.0 377.0 449.7
Area Disturbed ha 13.0 73.3 19.6
Area Rehabilitated ha 0.0 0.6 4.6
Total Disturbed Land at the End of the Year ha 377.0 449.7 464.7
NOTE: N/A.
MM2: Sites Requiring Biodiversity Management Plans

PTAR has one site and that site has a Biodiversity Management Plan.
NOTES:
- N/A.
ASPECT: EFFLUENTS & WASTE

MM3: Total Amounts of Overburden, Rock, Tailings and Sludges
Overburden tonne 8,068,686 5,332,293 6,059,445
Tailings tonne 4,840,031 5,254,981 5,572,205
Sludges tonne 0 0 0
NOTES:
- Amounts of tailings are calculated as the weight of dry tonnes milled less the weight of precious metals extracted.
CATEGORY: MINING & METALS SECTOR - SOCIETY

ASPECT: LOCAL COMMUNITIES
MM6: Significant Disputes Relating to Land Use, Customary Rights and Indigenous People
Significant Disputes Related to Land use, Customary number 1 2 0
Rights and Indigenous Peoples.
NOTES:
- N/A.
MM7: Extent to Which Grievance Mechanisms Were Used to Resolve Disputes Relating to Land Use, Customary Rights
of Local Communities and Indigenous People
Significant Disputes Related to Land Use, Customary number 1 2 0
Rights and Indigenous Peoples.
NOTES:
- N/A.
ASPECT: CLOSURE PLANNING

MM10: Operations with Closure Plans
Mine Closure Guarantees deposited. USD '000 4,386 7,342 10,251
Cumulative Deposit. USD '000 5,864 13,206 23,457
NOTES:
- PTAR has one operation, which has a Closure Plan in place.
- The total Mine Closure Guarantee is USD 23,456,541.

APPENDICES
APPENDIX THREE: GRI STANDARDS REFERENCE INDEX

[102-55]
General Standard Disclosures

Disclosure Remarks Page number(s) or explanation
1 Organizational Profile
102-1 Name of the organization 12
102-2 Activities, brands, products and services 12
102-3 Location of headquarters 12
102-4 Location of operations 14
102-5 Ownership and legal form 12
102-6 Markets served 20
102-7 Scale of the organization 12
102-8 Information on employees and other workers 71
102-9 Supply chain 19
102-10 Significant changes to the organization and its supply chain 20
102-11 Precautionary Principle or approach 24
102-12 External initiatives 24-25
102-13 Membership of associations 25
2 Strategy
102-14 Statement from senior decision-maker 5
102-15 Key impacts, risks, and opportunities 21
3 Ethics and Integrity

102-16 Values, principles, standards, and norms of behaviour 1 and 26
102-17 Mechanisms for advice and concerns about ethics 26-28
4 Governance
102-18 Governance structure 27-27-28 28
5 Stakeholder Engagement
102-40 List of stakeholder groups 29, 88-89
102-41 Collective bargaining agreements 102
102-42 Identifying and selecting stakeholders 29
102-43 Approach to stakeholder engagement 29
102-44 Key topics and concerns raised 32

APPENDICES
General Standard Disclosures (continued)

6 Reporting Practice
102-45 Entities included in the consolidated financial statements PTAR does not have any subsidiaries
102-46 Defining report content and topic boundaries 89-91
102-47 List of material topics 91
102-48 Restatements of information 20
102-49 Changes in reporting 89-90
102-50 Reporting period 92
102-51 Date of most recent report 2
102-52 Reporting cycle 2
102-53 Contact point for questions regarding the report 118
102-54 Claims of reporting in accordance with the GRI Standards 2
102-55 GRI content index 106-109
102-56 External assurance 110-112
Topic-Specific Disclosures: Economic

Economic Performance
103-1 Explanation of the material topic and its boundary 40, 89 and 90
103-2 The management approach and its component 21, 24, 26 and 41
103-3 Evaluation of the management approach 21, 24, 26 and 41
201-1 Direct economic value generated and distributed 93
201-2 Financial implications and other risks and opportunities due to 93
climate change
201-3 Defined benefit plan obligations and other retirement plans 41
Market Presence
202-1 Ratios of standard entry level wage by gender compared to local 93
minimum wage
202-2 Proportion of senior management hired from the local 93
community

APPENDICES
Topic-Specific Disclosures: Economic (continued)

Indirect Economic Impacts
203-1 Infrastructure investments and services supported 94
Procurement Practices
103-1 Explanation of the material topic and its boundary 19
103-2 The management approach and its component 19 and 28
103-3 Evaluation of the management approach 20
204-1 Proportion of spending on local suppliers 94
Anti-Corruption
103-2 The management approach and its component 94
205-2 Communication and training about anti-corruption policies and 94
procedures
Topic-Specific Disclosures: Environmental

Materials
301-1 Materials used by weight or volume 95
301-2 Recycled input materials used 95
Water
103-2 The management approach and its component 21, 24, 26 and 54-55
303-1 Water withdrawal by source 95
303-2 Water sources significantly affected by withdrawal of water 95
303-3 Water recycled and reused 96
Biodiversity
103-3 Evaluation of the management approach 21, 24, 26 and 63-64
304-1 Operational sites owned, leased, managed in, or adjacent to, 96
protected areas and areas of high biodiversity value outside
protected areas
304-3 Habitats protected or restored 96

APPENDICES
Topic-Specific Disclosures: Environmental (continued)

Emissions
305-1 Direct (Scope 1) GHG emissions 96
305-2 Energy indirect (Scope 2) GHG emissions 97
305-3 Other indirect (Scope 3) GHG emissions 97
305-4 GHG emissions intensity 97
Effluents and Waste
103-1 Explanation of the material topic and its boundary 46, 50-51,89 and 90
306-1 Water discharge by quality and destination 97
306-2 Waste by type and disposal method 98 and 51-52
306-3 Significant spills 98
306-4 Transport of hazardous waste 99
306-5 Water bodies affected by water discharges and/or runoff 99
Environmental Compliance
103-1 Explanation of the material topic and its boundary 44 and 89 - 90
103-2 The management approach and its component 21, 24, 26, 44 and 45
103-3 Evaluation of the management approach 21, 24, 26, 44 and 45
307-1 Non-compliance with environmental laws and regulations 45
Rehabilitation
103-1 Explanation of the material topic and its boundary 60-61 and 89-90
103-2 The management approach and its component 60 and 61
103-3 Evaluation of the management approach 60 and 61
Topic-Specific Disclosures: Social

Employment
401-1 New employee hires and employee turnover 99-100
401-2 Benefits provided to full-time employees that are not provided to 100
temporary or part-time employees
401-3 Parental leave 100

APPENDICES
Topic-Specific Disclosures: Social (continued)

Occupational Health and Safety
103-1 Explanation of the material topic and its boundary 40, 65, 89 and 90
103-2 The management approach and its component 21, 24, 26, 41, 65 and 66
103-3 Evaluation of the management approach 65-66
403-1 Workers representation in formal joint management–worker 101
health and safety committees
403-2 Types of injury and rates of injury, occupational diseases, lost 101
days, and absenteeism, and number of work-related fatalities
403-3 Workers with high incidence or high risk of diseases related to 102
their occupation
403-4 Health and safety topics covered in formal agreements with 102
trade unions
Training and Education
103-1 Explanation of the material topic and its boundary 21, 24, 26 and 73
404-1 Average hours of training per year per employee 103
404-2 Programs for upgrading employee skills and transition 103
assistance programs
404-3 Percentage of employees receiving regular performance and 103
career development reviews
Diversity and Equal Opportunity
103-2 The management approach and its component 72
405-1 Diversity of governance bodies and employees 104
405-2 Ratio of basic salary and remuneration of women to men 104
Local Communities
413-1 Operations with local community engagement, impact 104
assessments, and development programs
413-2 Operations with significant actual and potential negative 104
impacts on local communities

APPENDICES
GRI Sector Specific Indicator Under G4 Aspect

Biodiversity
MM1 Amount of land disturbed or rehabilitated 105
MM2 Number and percentage of total sites identified as requiring bio- 105
diversity management plans (BMPs) according to stated criteria
and the number (percentage) of those sites with plans in place
Effluents & Waste
MM3 Total amounts of overburden, rock, tailings and sludges and 105
their associated risks
Local Communities
MM6 Significant disputes relating to land use, customary rights of 105
local communities and indigenous peoples
MM7 Extent to grievance mechanisms were used to resolve disputes 105
relating to land use, customary rights of local communities and
indigenous peoples and the outcomes
Closure Planning
MM10 Number and percentage of operations with closure plans 105

APPENDICES
APPENDIX FOUR: EXTERNAL ASSURANCE

[102-56]
Independent Assurance Statement

Report No. 0919/BD/0024/JK
Independent Assurance Statement
To the management of PT Agincourt Resources Report No. 0919/BD/0024/JK
2) assessment of the accuracy and quality of the
To
Wethe management
were engaged by of PT
PT Agincourt
Agincourt Resources
Resources (‘PTAR’) specified sustainability performance information
2) assessment of the accuracy and quality of the
to provide assurance in respect to its
We were engaged by PT Agincourt Resources (‘PTAR’)
Sustainability contained within the Report, in relation to the agreed
specified sustainability performance information
Report 2018 (‘the Report’). The assurance
to provide assurance in respect to its Sustainabilityengagement scope, which consisted of:
contained within the Report, in relation to the agreed
was carried
Report out Report’).
2018 (‘the by our highly experienced
The assurance assurancescope, which
engagement  Economic
consisted of:and fiscal benefit
teamcarried
was whoseout diverse
by ourand complementary
highly experienced skills ensure a  Economic
assurance  Disposal of benefit
and fiscal tailings
high whose
team level ofdiverse
competence in carrying out
and complementary their
skills duties.
ensure a  Site
 Disposal water management
of tailings
high level of competence in carrying out their duties.  Site water managementhealth and safety
 Occupational
Independence  Occupational health and
 Community safety
development program.
Independence  Community development program.
We carried out all assurance undertakings with Responsibility
We carried out all assurance undertakings with
independence and autonomy having not been involvedResponsibility
independence and autonomy having not been involved
in the
in thepreparation
preparation of of
anyanykeykeypartpart of Report.
of the the Report. Nor didPTAR PTAR
Nor did is responsible
is responsible for the preparation
for the preparation of the Report of the Report
we provide any services to PTAR during 2018 that thatand alland
we provide any services to PTAR during 2018 all information
information and claims andtherein,
claimswhichtherein, which include
include
could conflict
could conflictwithwiththethe independence
independence of theof assurance
the assuranceestablishedestablished sustainability
sustainability management management
targets, targets,
engagement.
engagement. performance management,
performance management, data collection, etc. In data collection, etc. In
performing
performing this engagement,
this engagement, meanwhile,meanwhile,
our our
Assurance
AssuranceStandards Standards responsibility to the management
responsibility of PTAR isofsolely
to the management PTAR foris solely for
the purpose of verifying
the purpose the statements
of verifying it has madeit inhas made in
the statements
Our
Ourwork workwas wascarried
carried outout
in accordance
in accordance with with
ISAE3000
ISAE3000relationrelation
to its sustainability performance, specificallyspecifically
as
to its sustainability performance, as
‘Assurance Engagements other than
‘Assurance Engagements other than Audits or ReviewsAudits or Reviews described in the agreed scope, and expressing our
of Historical Financial Information’ issued by the described in the agreed scope, and expressing our
of Historical Financial Information’ issued by theopinionopinion
International Auditing and Accounting Standards Board.
on the conclusions reached.
on the conclusions reached.
International Auditing and Accounting
In addition, the work was also planned and carried out Standards Board.
Methodology
In conform
to addition,tothe work was
AA1000AS also ‘AA1000
(2008) planned and carried out
Assurance Methodology
to conform
Standards to AA1000AS
(2008)’, (2008) ‘AA1000 AssuranceIn order to assess the veracity of certain assertions and
issued by AccountAbility.
Standards (2008)’, issued by AccountAbility. In data
specified ordersetstoincluded
assess the veracity
within of certain
the report, as wellassertions
as and
Level of assurance and criteria used the specified
systems and data sets
processes included
used to within
manage the
and report,
report as well as
Level of assurance and criteria used them, that
the include
systems review
and on the
processes application
used to of GRI
manage and report
By designing our evidence-gathering procedures to Standards
them,CorethatOption in relation
include reviewto on the the
agreed scope,
application of GRI
obtain a limited level of assurance based on ISAE3000 the following
Standards methods
Core were
Option employed
in relation during
to the the
agreed scope,
By designing our evidence-gathering procedures toengagement process:
and a moderate level of assurance engagement as set out the following methods were employed during the
obtain a limited level of assurance based on ISAE3000 Review of report, internal policies, documentation,
in AA1000AS (2008) readers of the report can be engagement process:
and a moderate
confident that all level
risks orof errors
assurancehave engagement
been reduced as to set
a out management and information systems
in AA1000AS  Review of ofrelevant
report, internal
staff policies,
involved documentation,
very low level, (2008)althoughreaders of the report
not necessarily to zero.can be Interview in
confident that all risks or errors have
Moreover, the Report was also evaluated in accordance been reduced to a management and information
sustainability-related management and reporting systems
very thelow
with level,
criteria althoughAccountAbility
of AA1000 not necessarily  Interview
to zero. Following
Principles data trails of to relevant
the initial staffaggregatedinvolved in
Moreover,
(2018) the ReportMateriality,
of Inclusivity, was also evaluated
Responsiveness in accordance
and source, sustainability-related
to check samples of data management and reporting
to a greater depth.
Impact
with the andcriteria
Global Reporting
of AA1000 Initiative (GRI) Standards
AccountAbility Principles  Following data trails to the initial aggregated
Core
(2018) Option to assess theMateriality,
of Inclusivity, the information andLimitationssource, to check samples of data to a greater depth.
reliability of Responsiveness
disclosed
Impact and in the report.Reporting Initiative (GRI) Standards
Global
Core Option to assess the reliability of the informationOur scope of work was limited to a review of the
Limitations
Scope of Assurance accuracy and reliability of specified data and interviews
disclosed in the report. with data providers, persons in charge of data
We provided a Type 2 assurance engagement under Ourand
collection scope of work
processing, wasaslimited
as well persons to a review of the
in charge
Scope of Assurance
AA1000AS (2008) This involved: of sustainability performance-related information. and interviews
accuracy and reliability of specified data
1) assessment of PTAR’s adherence to the AA1000 with data providers, persons in charge of data
WeAccountAbility
provided a Type 2 assurance
Principles (2018); andengagement under collection and processing, as well as persons in charge
AA1000AS (2008) This involved: of sustainability performance-related information.
1)PT. Moores
assessment of PTAR’s adherence to the AA1000
Rowland Indonesia
AccountAbility Principles
21 720 2606 (2018); and
Jl. Sisingamangaraja No. 26 – Jakarta Selatan 12120 - Indonesia
Tel: +62 21 720 2605 - Fax: +62 - www.moores-rowland.com
PT. Moores Rowland Indonesia

Tel: +62 21 720 2605 - Fax: +62 21 720 2606 - www.moores-rowland.com

APPENDICES
Conclusions PTAR's allocation of resources to stakeholder

engagement, the timeliness and accessibility of
We have confirmed that the Report has been prepared
Conclusions PTAR's allocationinformation,
reported of resources andto stakeholder
the types of
in accordance with GRI Standards Core Option. engagement,
communication mechanisms regularlyof employed
the timeliness and accessibility
We have confirmed that the Report has been prepared reported information, and
in accordance with
Conclusions GRI Standards
in regard Core Option.
to adherence to the AA1000 were all indicative of itstheresponsiveness
types of
to key
communication mechanisms regularly employed
AccountAbility Principles of Inclusivity, Materiality, stakeholder concerns and expectations.
were all indicative of its responsiveness to key As in other
Conclusions in regard to adherence to the AA1000 areas, however, vigilance is a key and we
Responsiveness and Impact
AccountAbility Principles include Materiality,
of Inclusivity, the following stakeholder concerns and expectations. As in other
findings:
Responsiveness and Impact include the following areas,recommend that PTARis conducts
however, vigilance a key regular
and wemonitoring
findings: and improves
recommend that PTARstakeholder engagement
conducts regular monitoringprocedures
 Inclusivity where necessary
and improves in future
stakeholder reports.procedures
engagement
 An assessment was made on whether PTAR has
Inclusivity where necessary in future reports.
An assessment
included wasstakeholders
all key made on whether PTAR has and
in developing  Impact
included all key stakeholders in developing and to  ImpactAn assessment was made on whether PTAR has
achieving an accountable and strategic response
achieving an accountable and strategic response to An assessment
monitored,was made onand
measured whether PTAR has
is accountable for how its
sustainability issues. monitored, measured and is accountable for how its
sustainability issues. actions affect their broader ecosystems.
actions affect their broader ecosystems.
Demonstration
Demonstration ofof PTAR’s
PTAR’sstrong strong commitment
commitment to to
stakeholder inclusivityincluded
stakeholder inclusivity includedthethe conduct
conduct of of PTARPTAR has integrated
has integrated identified
identified impacts
impacts into key into key
needs assessment surveys
needs assessment surveysandandmateriality
materialitylevellevel management processes, for example, the materialitymateriality
management processes, for example, the
survey
survey of the key stakeholder groups. Thus our our
of the key stakeholder groups. Thus assessment
assessment processprocess and organisational
and organisational strategy, strategy,
overall assessmentwas
overall assessment wasthatthatPTAR
PTAR hashas
set set in place
in place governance,
governance, goal-setting
goal-setting and operations.
and operations.
an effective
an effective system
systemthat
thatenables
enableskeykey
stakeholders to to
stakeholders
participate in In order
In to strengthen
order the effectiveness
to strengthen of assessment
the effectiveness of assessment
participate in the
thedevelopment
development of of
thetheorganization's
organization's
response in and disclosure of impacts,
and disclosure we recommend
of impacts, that PTARthat PTAR
we recommend
response in the
thecontext
contextofofsustainability.
sustainability. continues conducting regular regular
monitoring of its
continues conducting monitoring of its
In order to maintain and strengthen the effectiveness systems and procedures, plus implements
In order to maintain and strengthen the effectiveness systems and procedures, plus implements
of this inclusivity, however, we recommend that improvements where necessary.
of
PTARthis carries
inclusivity, however,
out regular we of
monitoring recommend
its systems that improvements where necessary.
PTAR carries out regular monitoring
and procedures, plus implements improvements of its systems Based on our limited assurance engagement, the report
and
whereprocedures,
necessary. plus implements improvements has reflected Based ontheour limited assurance
application engagement,
of GRI Standards Core the report
where necessary. hasInreflected
Option. the application
addition, nothing has come of GRIattention
to our Standards Core
 Materiality Option.
that causes In believe
us to addition, nothing
the data of thehas come
Report hastobeen
our attention
With stakeholders requiring material information on
 Materiality materially misstated.
that causes us to believe the data of the Report has been
whichstakeholders
With to base theirrequiring
informed material
judgments, decisions on
information materially misstated.
and actions,
which to baseantheir
assessment
informedwas carried out
judgments, to
decisions All key assurance findings are included herein, while
determine the extent to which PTARwas has included
out to detailed
and actions, an assessment
such information in the Report.
carried All observations
key assurance and findings
follow-uparerecommendations
included herein, while
determine the extent to which PTAR has included have been submitted to PTAR management in a separate
detailed
report.
observations and follow-up recommendations
such
PTAR’sinformation in the Report.
strong commitment to meet stakeholder have been submitted to PTAR management in a separate
needs in this field was evidenced by the provision of Jakarta, October 1, 2019
report.
PTAR’s
adequatelystrong commitment
reported and balanced to information
meet stakeholder
on
needs in this field
key material issues.was evidenced as
Nevertheless, by demands
the provision
for of Jakarta, October 1, 2019
adequately
information reported
continue to andincrease,
balancedwe information
recommend on
that material
key PTAR conducts
issues. materiality tests as
Nevertheless, on demands
a regular for
basis for inclusion
information in future
continue to reports.
increase, we recommend James Kallman
 that PTAR conducts materiality tests on a regular Chief Executive Officer
Responsiveness
basis
It is for inclusionimportant
increasingly in futuretoreports.
respond in meeting MooresJames Kallman
Rowland is an international organization
stakeholder expectations and an assessment was specializing in audit, accounting,
Chief Executive Officer tax, legal and advisory
 Responsiveness
carried out to determine the degree to which PTAR services. Moores Rowland is a member of Praxity AISBL,
Itdemonstrates
is increasingly important in
its accountability tothis area. in meeting the Moores
respond Rowland
world's largest is anof international
Alliance independent and organization
stakeholder expectations and an assessment was unaffiliated specializing in audit,
audit and accounting,
consultancy tax, Praxity
companies. legal andis advisory
carried out to determine the degree to which PTAR servedservices. Moores
by Moores Rowland
Rowland is a member
in Indonesia, one ofofPraxity
the AISBL,
demonstrates its accountability in this area. leading sustainability
the world's assurance
largest providers.
Alliance of independent and
PT. Moores Rowland Indonesia unaffiliated audit and consultancy companies. Praxity is
served by Moores Rowland in Indonesia, one of the
leading sustainability assurance providers.
PT. Moores Rowland Indonesia

APPENDICES
APPENDIX FIVE: GLOSSARY – GENERAL TERMS

All-in Sustaining Cost (AISC) A standardised way to measure the cost of gold production introduced by the World
Gold Council in 2013. It includes direct mining and processing costs (cash costs) plus
mining lifecycle costs related to sustaining production from exploration to closure.
Analytical Laboratory A testing facility for measurement of the physical, chemical and/or biological properties
of water, soil, rock or other materials.
Biodiversity The variety of plants and animals within an eco-system, and the way they live and
interact.
Business and Biodiversity Offsets An international collaboration between companies, financial institutions, government
Programme (BBOP) agencies and civil society organizations. The members are developing best practice in
following the mitigation hierarchy to achieve no net loss or a net gain of biodiversity.
Biodiversity Offsets Biodiversity offsets are measurable conservation outcomes resulting from actions
designed to compensate for significant residual adverse biodiversity impacts arising
from project development and persisting after appropriate avoidance, minimization and
restoration measures have been taken.
Contractors Providers of services to an organisation or company based upon agreements written in

a contract.
Corporate Governance Corporate governance can be defined as the system of rules, practices and processes
by which a company is directed and controlled in order to ensure accountability, fairness
and transparency in its relationships with its stakeholders.
Downstream Waters Rivers, streams and lakes that receive flow from a defined area.
Environmental Impact Assessment One of the key regulatory approvals required in Indonesia for a mine to proceed. The
(AMDAL) AMDAL consists of several documents including the Terms of Reference, Environmental
Impact Statements (AMDAL) and Environmental Management and Monitoring Plans
(RKL & RPL).
Equator Principles The Equator Principles (EPs) is a risk management framework, adopted by financial
institutions, for determining, assessing and managing environmental and social risk in
projects, and is primarily intended to provide a minimum standard for due diligence and
monitoring to support responsible risk decision-making.
Geological Core Sheds A facility where rock samples (cores) produced by exploration drilling are stored,
catalogued and analysed.
Haul Roads Roads designed for use by large dump trucks at mine sites.
High Voltage Switchyard A facility for the control and transmission of high voltage power. At a mine site, normally
located between a power station and equipment requiring electricity.
International Cyanide Management The Cyanide Code is a voluntary initiative for the gold and silver mining industries
Code and the producers and transporters of the cyanide used in gold and silver mining. It is
intended to complement an operation’s existing regulatory requirements.
IFC Performance Standards Environmental and Social Performance Standards define International Finance
on Environmental and Social Corporation (IFC) clients’ responsibilities for managing their environmental and social
Sustainability risks. They use the World Bank Group Environmental, Health and Safety Guidelines
(EHS Guidelines) as a technical source of information during project appraisal. The IFC
Performance Standards are referenced by the Equator principles and are often used as
the basis for assessing a projects implementation of sustainable development.

APPENDICES
Lost Time Injuries (LTI) A work related injury that causes the employee to miss the next regularly scheduled
work shift.
Lost Time Injury Frequency Rate A ratio of the number of LTIs per million hours worked: LTIFR = LTIs X 1,000,000 / total
(LTIFR) hours worked.
Mineral Resource The quantity of gold or silver in defined deposits for which there are reasonable
prospects for eventual economic extraction. A mineral resource is determined from
exploration and sampling.
Mine Closure Plan A plan that documents all the rehabilitation, revegetation and other activities that are
needed to make a former mine site safe, stable and productive to an agreed standard
following mine closure. Includes tabulation of costs associated with mine closure.
Operating Permits Permits issued by various levels of government which allow exploration and mining
operations to operate under certain terms and conditions.
Ore Reserve The economically mineable part of the mineral resource. It is the ore reserve that
determines mine life, together with production rate.
Oxidation Reaction of a material typically due to exposure to oxygen and water (rust is a result of
oxidation).
Plant Nursery A facility where trees and plants are propagated and grown to a size good for planting.
Processing Plant The facility where ore is processed to extract metals such as gold and silver.
Raw Water Storage Tanks Tanks for the storage of clean water (e.g. rainwater runoff or water from
streams or rivers).
Rehabilitation The process of reclaiming land disturbed by mining activities to a safe, stable and
productive state.
Remuneration Basic wage or salary plus any additional amounts paid to employees such as bonuses,
overtime and special allowances.
Rock Slurry A mixture of finely ground rock particles and water (like a mud).
Sediment Dams Dams used to hold water for a period to allow sediments (fine soil and rock particles) to
settle out.
Social licence to operate A refers to a local community’s acceptance or approval of a company’s project or
ongoing presence in an area.
Subaerial Tailings Deposition The systematic deposition of tailings in thin layers, allowing each layer to settle, drain
and partially air-dry before covering with an additional layer.
Suppliers Organizations or people that provide a product or service used by another organization
or company.
Surface Mining Method of extracting minerals located near the surface of the ground, by mining from an
open pit (as opposed to underground mining using shafts and tunnels).
Sustainability Development which meets the needs of current generations without compromising the
ability of future generations to meet their own needs.
Tailings The fine rock slurry that remains after the minerals of value has been recovered in a
processing plant.
Tailing Storage Facility (TSF) A structure for the permanent storage of tailings (typically comprising an embankment
or wall enclosing the tailings).
TSF design freeboard allowance The spare capacity required in a TSF to safely accommodate an extreme rainfall event.

APPENDICES
Waste Rock Rock mined from a pit that contains insufficient mineralisation for treatment and has no
economic value.
Water Balance A calculation of total water held within a system or structure taking into account water
inflows and water outflows over time.
Water Diversion Drains Drains that direct runoff water around areas or structures.
Water Polishing Plant The facility at the Martabe Gold Mine that removes any contamination from site
processing water so that it is safe to release.
World Gold Council (WGC) The market development organisation for the gold industry. Its purpose is to provide
industry leadership and stimulate demand for gold.
Glossary – GRI Terms
GLOSSARY – GRI TERMS

Disclosures Information about a company and its relationship with its stakeholders reported in its
sustainability report.
General Disclosures Disclosures that set the overall context for a sustainability report, providing a description
of the organization and its reporting process. They apply to all organizations irrespective
of their identified material Aspects.
Global Reporting Initiative (GRI) An international not-for-profit organization promoting the use of sustainability reporting
as a way for companies and organizations to become more sustainable and contribute
to a sustainable global economy.
Impact The effect an organization has on the economy, the environment, and/or society, which
in turn can indicate its contribution (positive or negative) to sustainable development.
Indicators GRI reporting requirements dealing with specific issues of the material Aspects.
Material Topic Those aspects of an organisation that reflect its significant economic, environmental
and social impacts; or that substantively influence the assessments and decisions of
stakeholders.
Stakeholders Stakeholders are defined as groups or individuals that can reasonably be expected to
be significantly affected by an organization’s activities, products, and services; and
whose actions can reasonably be expected to affect the ability of an organization to
successfully implement its strategies and achieve its objectives.

PTAR SUSTAINABILITY REPORT FEEDBACK FORM
PTARSUSTAINABILITY
PTAR SUSTAINABILITYREPORT
REPORT FEEDBACK
FEEDBACK FORM FORM
[102-53]
We look forward
We forward to suggestions
to suggestions as totohow
as to how to improve
improve our sustainability
our sustainability reporting
reporting so that itsocan
that it can
best best
meet the meet the
interests
interests and concerns of our stakeholders. Please use this form to let us know what works well and what
and concerns of our stakeholders. Please use this form to let us know what works well and what can be improved. can be
improved. All submissions will remain anonymous, and results will be reported in the next Sustainability Report.
All submissions will remain anonymous, and results will be reported in the next Sustainability Report.
Report Coverage
This report focuses on 12

13 material Aspects (below). These are the potential economic, environmental and social
impacts associated with the Martabe Gold Mine that that we understand to be of most interest to our stakeholders.
• Please add to the list below any other Aspects that you think we should be reporting on.
• Please mark with a cross the five Aspects that you think are of most importance for the Martabe Gold Mine (you
may include Aspects that you have added)
Fiscal and Economic

Economic Benefit. Benefit Health and Safety
Occupational Health and Safety
Environmental
EnvironmentalCompliance
Compliance Local Employment
Local Employment
Disposal of Tailings Gender Diversity
Disposal of Tailings Employee Development
Disposal of Waste Rock Employee Development
Disposal of Waste Rock Occupational Health and Safety
Management of Hazardous Industrial Wastes Community Development
Protections of Downstream Waters
Protection of Water Resources
Community Development
Rehabilitation and Mine Closure
Site Rehabilitation and Mine Closure
Protection of Biodiversity
Biodiversity
Level of Detail and Technical Content
PTAR Sustainability Reports are intended to be a useful source of information for all our stakeholders. We try to
communicate important information in a way that can be easily understood by most people, including those with no
experience of the mining industry.
• Please tick one of the boxes for each question below.
Questions Yes No Unsure

Questions Yes No Unsure
Overall, was there
Overall, was there sufficient
sufficient information
information in
in this
this report
report to
to meet
meetyour
yourneeds?
needs?
Overall, did you find the report

report easy
easy enough
enough to
to read
read and
and understand?
understand?
The data
The data presented
presented ininAppendix
Appendix22isisbased
basedonon
thethe
GRI G4Standards.
GRI standard. DidDidyou
you
find it
find it of
of use
use in
in understanding
understanding the
the Company’s
Company’s management
management of of sustainability?
sustainability?
117
104
PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018
• Please indicate below what additional numerical data (if any) you would like to see reported year-by-
year in PTAR Sustainability Reports.
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Accuracy and Balance
• Did you find this report reasonably balanced and accurate? We would appreciate if you could explain
any concerns that you may have in this regard below:
………………………………………………………………………………………………………………………………
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Report Layout and Design
• Do you have any suggestions regarding report layout and/or design that would help make the next
report easier and/or more interesting to read?
………………………………………………………………………………………………………………………………
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105

Some Information About You
Some basic information about you will help us analyse and report on the data collected:
Please tick the box that best describes you.
Where do you call home? Tapanuli Selatan

Elsewhere in Sumatra
Elsewhere in Indonesia
Outside of Indonesia
Are you employed at the Martabe Gold Mine or otherwise employed Yes No
by PTAR?
Which of these terms best describes you: School educated
College/University educated
Other
Which age group do you belong to? Below 18 years
18 to 55 years
Above 55 years
How to Submit this Form
1) Scan or photograph and email to: [email protected]
2) Mail or deliver to our office in Jakarta:

DGM Business Services
Wisma Pondok Indah 2
Jl. Sultan Iskandar Muda
Kav V-TA, Pondok Indah
Jakarta 12310
3) Deliver to the Martabe Gold Mine:

DGM Business Services
Martabe Gold Mine
Batangtoru
106 PT AGINCOURT RESOURCES • 2016 SUSTAINABILITY REPORT

RESOURCES
M E M B E R O F A S T R A
PT Agincourt Resources
Pondok Indah Office Tower, Suite 1201
Jl. Sultan Iskandar Muda
Pondok Indah
Jakarta 12310, Indonesia
www.agincourtresources.com

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2018

PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018 i

PT AGINCOURT RESOURCES 12 MINE CLOSURE 62

THE MARTABE GOLD MINE 13 PROTECTION OF BIODIVERSITY 63

ORGANISATIONAL AND 21 HEALTH AND SAFETY 65

ii PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

85 GRI STANDARDS PERFORMANCE

LOOKING FORWARD GRI STANDARDS REFERENCE INDEX 106

PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018 iii

iv PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

Since 2013, the Company has implemented its continuous

A more efficient operation provides a platform to identify further

Economic performance, alongside environmental and social, is one

PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018 1

Sustainable development is often defined as Balance.

2 PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

Looking Forward Medium-term objectives and goals related to management of sustainable

Appendix Four Independence assurance statement which provide confirmation that

PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018 3

4 PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

Jakarta, October 2019

6 PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018 7

Wages and Benefits to PTAR Employees % Local Employment

Provision of Goods and Services by Local Community Development Investments

333 days 297 days

Compliance with Discharge Permit LTIFR1

ESDM Environmental Management Assessment SMKP Minerba Audit Score2

Seedlings Planted Attendance at Safety Training Courses

8 PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018 9

10 PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

Scale of the Organisation in 2018

Total Number of Direct Employees 814

Total Number of Contractor Employees 1833

Total Workforce 2,647

Gold Poured 410,387 oz (12,764 kg)

Silver Poured 2,895,380 oz (90,056 kg)

Total Sales US$ 574 million

Gold US$ 522 million

Silver US$ 52 million

Total Capitalisation US$ 579 million

12 PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

THE MARTABE GOLD MINE

PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018 13

Martabe Gold Mine Location

The Martabe Gold Mine operates under a

14 PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

SITE FACTORS The site is located within the watersheds of

View of the Aek Pahu

PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018 15

RESOURCES AND RESERVES MINERAL RESOURCES AND ORE

Night View of the

16 PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

EXPLORATION Mining activities in the field include clearing,

MINING Leaching of gold and silver from the slurry

PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018 17

18 PT AGINCOURT RESOURCES | SUSTAINABILITY REPORT 2018

After the gold and silver is removed from the

collection, and disposal. The successful