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indonesian coal continued and CAPEX to support production growth need. • Adaro has good mine planning. However, in the current difficult market conditions, Adaro has recognized the need to get back to basics and does this by continuing to focus on the core business and reducing costs and improving efficiency. In addition, Adaro is carefully monitoring spending to preserve cash and maintain margins. Despite the recent economic downturn, the company remains on-track to deliver its long-term strategies to grow and create maximum sustainable value from Indonesian coal by building a better and more efficient business. It aims to achieve a medium-term annual target of 80 million mt by continuous improvement in the coal supply chain, and to move further downstream into power. reputable universities, inside and outside Indonesia. It hires more than 70% of its employees from the local community in South Kalimantan. Adaro is committed to maximizing workplace safety in all operational aspects. It continues to implement an integrated safety, environmental and production management system known as Adaro Safety, Environment and Production, which is aligned with ISO 14001 and OHSAS 18000 international standards. To improve employee awareness of safety, health and environmental issues, as well as to create a safe working environment culture, Adaro has employed a group general manager of SHE to create policies that will be implemented by all levels within the company's business units and operating subsidiaries. Components of the safety culture include: Top management commitment to worker safety; Consistently work on adapting international standards; and Punishment for breaking safety rules. Environmental Initiatives Many people perceive that coal mining activities disturb the landscape and environment, but Adaro said this is not entirely true. By implementing good mining practices it can maintain and manage the environment without damaging it. In one initiative to maintain CO 2 , Adaro conducted energy efficiency in its operational activity to reduce solar fuel consumption. It is also developing alternative energy through a biodiesel-fuel pilot plant in collaboration with Komatsu and United Tractors. The B-20 program aims to substitute 20% of fuel with jatropha oil that it plans to apply in 100 dump trucks when it can be mass produced. The program is expected to reduce annual emissions by 20,000 mt. The company's environmental performance is strictly regulated and controlled by the use of an environmental management system aligned with ISO 14001 standards. Since the beginning, Adaro Energy has been strongly committed to implementing its mining principles to internationally recognized standards. In recent years it has received a Gold rating in the PROPER Award after four consecutive years of gaining a Green rating from the Ministry of Environment. These awards show that Adaro has complied with all regulatory requirements and has even gone beyond compliance by implementing environment initiatives and sustainable community development programs. Safety is Vital Adaro Energy has more than 22,000 employees and boasts many talented recruits from July 2013 www.coalage.com 49