MIND ID targets 15.5 percent emissions cut by 2030

Jakarta (ANTARA) - State-owned mining holding company MIND ID aims to cut greenhouse gas emissions by 15.5 percent, or about two million tons of carbon dioxide equivalent (CO2e), by 2030 while supporting Indonesia's downstream mineral expansion.

"We are committed to supporting Indonesia's second Nationally Determined Contribution target by 2030 and its aspiration to achieve net-zero emissions," MIND ID Sustainability Division Head Binahidra Logiardi said in a statement on Saturday.

He said the two million-ton reduction target was set despite projected energy demand nearly doubling as the government accelerates mineral downstreaming.

Binahidra said decarbonizing the mining sector is becoming more challenging as downstream industrialization expands under MIND ID's strategic mandate.

He said downstream projects require substantially more energy, prompting the company to integrate sustainability initiatives to better manage greenhouse gas emissions.

"With the downstreaming mandate, our operational energy demand is expected to nearly double by 2030. Without intervention, emissions could rise about 2.1 times," Binahidra said.

MIND ID projects group energy demand will increase from about 149,000 terajoules in 2026 to 293,000 terajoules by 2030, an increase of more than 90 percent.

Without mitigation measures, greenhouse gas emissions are projected to climb from 6,100 kilotons of CO2e to 12,900 kilotons over the same period.

The increase reflects major industrial projects, including mine expansion in Kalimantan, an electric vehicle battery ecosystem in East Halmahera, aluminum expansion, new smelters and an undersea mining project, he said.

To curb emissions, MIND ID is increasing biodiesel use from B35 to B40, replacing high-speed diesel with liquefied natural gas, and optimizing electricity sourced from the state power grid.

Binahidra said subsidiary PT Bukit Asam Tbk has cut emissions by about 5,200 tons of CO2e annually by replacing fossil-fuel dump trucks with electric bucket-wheel excavators at its Tanjung Enim mining operation.

He added PT Indonesia Asahan Aluminum (INALUM) reduced emissions by about 3,700 tons of CO2e after replacing high-speed diesel with liquefied natural gas at its baking plant, while improving energy efficiency.

MIND ID is also expanding renewable energy use. PT Indonesia Chemical Alumina has introduced biomass co-firing using palm kernel shells, reducing emissions by about 560 tons of CO2e.

Meanwhile, PT Timah Tbk operates a 300-kilowatt-peak solar power plant that cuts emissions by about 300 tons of CO2e annually.

The company is also developing carbon offset initiatives through nature-based solutions, renewable energy certificates and participation in carbon trading markets.

Binahidra said decarbonization has become a key factor in improving the global competitiveness of Indonesian mineral products.

"Therefore, all of our strategies must integrate environmental, social and governance principles into the company's operations," he said.

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Translator: Khaerul Izan, Yashinta Difa

Editor: Rahmad Nasution

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