Evaluation of environmental management of one nickel mining company in Indonesia with special emphasis on water quality.

Abstract

Indonesia relies mostly on its mining sector to finance development efforts. There have been no guidelines or literature concerning the evaluation of environmental activities in the mining companies located in Indonesia. This research, conducted at P.T. INCO, a nickel mining company in Indonesia, was conducted as a model for assessing the effectiveness of environmental programs. In quantitative assessment of the environmental quality, the water quality parameters were chosen as a measure of performance. The objectives of this research were to compare the parameters of wastewater with and without treatment, to observe the social effect of the water quality management program, to examine the relationship of the price of mining commodity with the environmental expenditure by the company, and to explore the technology and knowledge transfer in the field of environmental management. The objectives given above were accomplished by adapting the methods proposed by Babbie (1979), Greeno et al. (1985), Kelly (1984), and the World Resources Institute (1984). The data analysis utilized uncomputerized quantitative and qualitative data gathered from the company's archives, accessible reports from three institutions in Indonesia, field work, and interviews. The analysis showed that there was an improvement in water quality through treatment. The data collected by the company for its monitoring purposes contain a wealth of information which has not been fully utilized. By managing the water quality, providing, and supervising water recreation facilities, the company enhanced the pride of the local community. This evaluation also shows that the environmental expenditures in a company may very much exceed the cost of its environmental control section. Technology and knowledge transfer was applied in the company through the work of consultants, practical training for college students and internal training for company workers. Based on the findings of this evaluation a checklist is presented on how to conduct an environmental evaluation in mining companies in Indonesia. The checklist includes the preliminary study, the evaluation of the water resources affected, the environmental expenditures, the social factor, and the technology and knowledge transfer. The method of data collection, data entry, and data analysis is also covered.