MIND ID targets 2 million ton emission cut by 2030 amid energy demand surge

Indonesia's state-owned mining holding company, MIND ID, has set an ambitious target to reduce its greenhouse gas (GHG) emissions by 15.5% by 2030. This translates to cutting approximately 2 million tons of CO2 equivalent (CO2e) from its operations. The goal is particularly significant as it comes at a time when the company anticipates its energy needs to nearly double by the same year, driven by the national strategic program for mineral downstreaming.

Binahidra Logiardi, Division Head of Sustainability at MIND ID, highlighted the complex challenges of decarbonizing the mining sector, especially during this period of expansion. The downstreaming program, a key mandate for the company, requires substantial energy input. MIND ID is integrating sustainability programs to ensure optimal control over GHG emissions. Without intervention, the company projects its emissions could increase by about 2.1 times.

Projections show MIND ID's energy needs escalating from around 149,000 terajoules (TJ) in 2026 to 293,000 TJ in 2030, a surge of over 90%. Consequently, GHG emissions are forecast to rise from 6,100 kilotons CO2e to 12,900 kilotons CO2e in the same timeframe if no measures are taken. This growth reflects the scale of expansion, including mine development, electric vehicle battery ecosystem projects, aluminum facility expansion, smelter construction, and even deep-sea mining initiatives.

To balance this growth with environmental responsibility, MIND ID is pursuing several strategic steps. These include converting to lower-carbon fuels, such as increasing biodiesel usage from B35 to B40, replacing High Speed Diesel (HSD) with liquefied natural gas (LNG), and optimizing electricity use from the national grid. For instance, PT Bukit Asam Tbk has already reduced emissions by over 5,200 tons CO2e annually by using Bucket Wheel Excavators instead of fossil-fuel-powered dump trucks for coal handling. PT Indonesia Asahan Aluminium (INALUM) also achieved emission reductions and improved energy efficiency by converting its baking plant from HSD to LNG.

MIND ID is also expanding its use of renewable energy sources like biomass and solar power. PT Indonesia Chemical Alumina (ICA) is using palm kernel shell biomass as a partial substitute for coal in co-firing, cutting emissions by about 560 tons CO2e. PT Timah Tbk has installed a 300-kilowatt peak (kWp) solar power plant, reducing emissions by an estimated 300 tons CO2e.

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With the downstreaming mandate given to MIND ID, our operational energy needs are projected to increase almost twofold by 2030. Moreover, these emissions could increase by about 2.1 times if no intervention is made.