ITM operates using guidelines called “Quality, Safety and Environment Management Standards.” The QSE department, in coordination with the Internal Audit, ensures that good performance is sustained and improvements needed are made. Ultimately, stakeholders’ needs could be well served through the prompt delivery of quality product to our customers, the safe extraction and processing of coal, and the safe rehabilitation of the mining sites.

QUALITY

At present, ITM have obtained and secured ISO certification for three mines, PT Indominco Mandiri (2003), PT Kitadin (Tandung Mayang) (2005), and PT Jorong Barutama Greston (2008). In 2010, PT Kitadin (Embalut) and PT Trubaindo Coal Mining are preparing for the process of certification for ISO 9001:2008. The new mine at PT Bharinto Ekatama is expected to obtain similar certification in due course.

PT Indominco Mandiri is leading the way by integrating the environmental standards ISO 14001:2004 and the OHSAS 18001:1999 into the ISO framework. Having seen the benefits of a comprehensive framework for both planning and operational components, ITM is seeking to implement the same approach for PT Kitadin (Tandung Mayang) and PT Jorong Barutama Greston in the near term.

ITM is also intensifying efforts to obtain TPM certification in order to focus on production equipment maintenance system. In June 2009 PT Indominco Mandiri secured Operational Excellence Award Level 1 designation for the first time and PT Kitadin (Tandung Mayang) upgraded to a Level 2 designation from CTPM Australasia. Plan for next year is to achieve Level 2 and Level 3, respectively; while TPM certification at other location will start upon completion of ISO certification process.

SAFETY

ITM believes that safety in mining is the company’s responsibility and a key success factor in achieving operational excellence. Given the inherent hazardous risks in mining operations, ITM management has proactively improved safety procedures.

Each business unit prepares Hazard Identification Risk Assessment and Risk Control, before operations commence. Armed with this information, all parties involved in mine operations – staff, contractors and suppliers – are fully aware of both general and specific behaviours which are required or prohibited.

PT Indominco Mandiri as the leading unit has been implementing OHSAS 18001:1999 since 2004. By having that system, ITM have developed the same pattern to other operation unit.

In addition to the above, ITM has developed a specific approach to health and safety in the Contractor Environment, Health and Safety program as part of the Company’s CMS. With the assistance of experienced personnel in health and safety, the Company provides, the targeted requirements to the contractors and resulting a significant improvement.

ENVIRONMENT

ITM’s commitment to the environment has a long-term view. Similar to the long-term views needed when making investments in mines, training and equipment. ITM also realised the investment required to maintain a healthy environment and to return mining sites to their natural condition and has taken several steps to accomplish this matter.

First, all business units prepare individual environmental impact and aspect identification studies. Upon approvals from the appropriate government authorities, these studies serve as bases to evaluate the environmental quality standards and reforestation efforts. At present, all business units are in full compliance with the existing standards.

Other documents prepared as part of the Environmental Impact Analysis (EIA) document are Environment Management Plans and Environment Monitoring Plans.

ITM has made efforts to prepare Mine Reclamation and Mine Closure documents comprising detail plans and activities which must be taken in order to ensure that sustainable environmental rehabilitation can be achieved. In addition to submitting a performance bond for annual reclamation projects, the above plans will demonstrate ITM on-going commitment to good corporate citizenship.

Mine reclamation works continue, with each mine location has a reclamation department to secure seedlings and reforestation.

BUSINESS CONTINUITY MANAGEMENT

To minimise the negative impacts from unforeseen disruptive events or natural disasters, ITM has developed an integrated process to identify potential threats and build frameworks for an effective emergency response. All of these efforts were made to safeguard the interests of stakeholders, ITM’s reputation, and value creating activities.

ITM’s approach to crisis management is to have the problem solved at the lowest level as possible, while keeping channels of information flowing. To comply with regulation and to remain prepared, ITM has formed an Emergency Response Team (ERT) at each site location.