MIND ID Strengthens Group Decarbonisation Amid Accelerated Mineral Downstreaming
State-owned Mining Industry Holding Indonesia MIND ID continues to strengthen its decarbonisation measures amid the acceleration of the national mineral downstreaming programme. These efforts are carried out through reducing greenhouse gas (GHG) emissions, utilising new and renewable energy (NRE), and converting to low-carbon energy to ensure industrial expansion remains aligned with sustainability targets.
Amid the development of various downstreaming projects, MIND ID is targeting a 15.5% reduction in GHG emissions, equivalent to approximately 2 million tonnes of carbon dioxide equivalent (CO2e), by 2030. This target is set despite the group’s operational energy requirements being projected to nearly double within the next five years.
According to company projections, the MIND ID Group’s energy needs will increase from around 149,000 terajoule (TJ) in 2026 to 293,000 TJ in 2030, a rise of more than 90%. Without intervention, GHG emissions are expected to increase from 6,100 kilotonnes CO2e to 12,900 kilotonnes CO2e over the same period.
The increase in energy demand is in line with the development of several strategic projects, ranging from new mines in Kalimantan, the construction of an electric vehicle battery ecosystem in East Halmahera, the expansion of aluminium facilities, the construction of smelters, to underground mining projects.
To curb emissions, MIND ID is implementing a number of decarbonisation strategies. The first step involves conversion to low-carbon fuels, starting from increasing the use of biodiesel from B35 to B40, replacing High Speed Diesel (HSD) with liquefied natural gas (LNG), to optimising the use of electricity from the PLN grid.
At the operational level, PT Bukit Asam Tbk has utilised a Bucket Wheel Excavator (BWE) for coal handling activities at the Tanjung Enim Mining Unit to replace fossil fuel-powered dump trucks. This initiative is capable of reducing emissions by approximately 5,200 tonnes of CO2e per year.
Meanwhile, PT Indonesia Asahan Aluminium has carried out a fuel conversion from HSD to LNG at its baking plant facility. This measure has resulted in an emission reduction of approximately 3,700 tonnes of CO2e while increasing operational energy efficiency.
The strengthening of decarbonisation is also carried out through the utilisation of new and renewable energy. PT Indonesia Chemical Alumina implements co-firing of palm kernel shell biomass as a partial substitute for coal, which is capable of reducing emissions by approximately 560 tonnes of CO2e.
PT Timah Tbk operates a solar power plant (PLTS) with a capacity of 300 kilowatt peak (kWp). This facility is able to reduce emissions by approximately 300 tonnes of CO2e while increasing the use of clean energy in the industrial area.
In addition to direct emission reductions, MIND ID is also developing carbon offset schemes through nature-based solutions, the utilisation of Renewable Energy Certificates (RECs), and participation in carbon trading.
Member of Commission XII of the Indonesian House of Representatives, Eddy Soeparno, assessed that the decarbonisation steps taken by MIND ID deserve appreciation because they are carried out comprehensively, from strengthening the renewable energy mix to improving operational efficiency.
‘Today, what MIND ID is doing, in my opinion, needs to be appreciated in three contexts: mitigation, adaptation, and efficiency. They are increasing the renewable energy mix as part of mitigation. They are also continuously promoting efficiency,’ said Eddy.
According to Eddy, increasing the utilisation of renewable energy is an important step, especially for the mineral processing and refining industry, which has high emission levels.
‘I think it is very positive. The utilisation of NRE is very important, especially in sectors that have high carbon emission levels, such as smelters. Smelters fall into the category of hard-to-abate industries, meaning industries that find it difficult to reduce their carbon emissions,’ he said.