Sharing the Benefits of Mining

PT Nusa Halmahera Minerals (PTNHM) is a joint venture between Newcrest 75% and
PT Aneka Tambang (Persero) 25%. PTNHM operates the Gosowong Gold Mine in North
Halmahera District, North Maluku Province, Indonesia.
Since the Gosowong operation commenced in 1999, PTNHM has maintained a strong commitment to the local community. Today,
PTNHM invests extensively in community initiatives that share the benefits of mining, support community needs and strengthen
socio-economic development in the region.
PTNHMs approach is supported by extensive stakeholder engagement, particularly with local communities and local government.
The objective is to develop an open and constructive approach to community engagement and investment. PTNHM knows that its
economic and social contribution supports the companys licence to operate and helps communities receive lasting benefits from the
mines operations.

Corporate Social Responsibility

PTNHMs Corporate Social Responsibility (CSR) program is
helping to develop a sustainable economy and enhance the
quality of life of the local community in cooperation with all
stakeholders.

Objective
To enhance economic opportunities for the local community,
independent of mining, by supporting projects in the following
priority areas:

Agriculture

Aquaculture

Health

Farming

Education

Infrastructure

Sustainable economic development projects are the main

priority for local communities and PTNHM has jointly identified
a target that 80 percent of its CSR projects be sustainable by
the end of 2014. This is an ambitious target but one that will
provide lasting community benefits.

PT Nusa Halmahera Minerals | June 2014

Approach
PTNHM allocates one percent of annual gross revenue to its
CSR program. Each local community has an annual CSR
budget allocation and a three person committee which
prioritises projects and review expenditure.
PTNHM CSR staff are closely involved in developing and
implementing the projects in conjunction with local authorities
and sub contractors. Local communities and PTNHM monitor
and evaluate the effectiveness and implementation of the
program. This provides a good balance between PTNHM and
local ownership and involvement.

Program Implementation
CSR projects currently support business and life skills training
as well as a range of agricultural and aquaculture programs.
PTNHM works together with an agriculture consultant to
provide capacity building, technical assistance and mentoring
to local communities. The consultant also helps identify
markets for the products produced.
Agriculture programs focus on high yield subsistence crops
and high-value cash crops such as corn, sago and cassava
plantations. These programs have delivered significant
results which are beneficial to the local communities. Among
the achievements are corn harvesting and the development of
a sago flour home scale factory.
Farming programs focus on cattle breeding using artificial
insemination and PTNHM works closely with the Agriculture
Department of North Halmahera District. To date the program
has delivered at least 43 good quality cows and numbers are
increasing. These cows will help meet the demand for beef in
local market.
PTNHM works closely with Fishery Affairs of North Halmahera
Regency to develop the aquaculture program.
Availability of adequate marine resources is encouraging local
people who reside in coastal areas to earn income through fish
farming with cage system and seaweed.
Much effort has also been made to improve the quality and
availability of education in the region. Various initiatives are
undertaken including tuition assistance for college students;
construction and renovation of high school buildings;
incentive/fees for part-time teachers (honorarium); provision
of chairs, desks and cabinets for local schools; and donations
for uniforms and stationery for students from low income
families. In addition, PTNHM offers opportunities for students
to learn about mining through site visits.

PT Nusa Halmahera Minerals

PTNHM has initiated a number of rural health improvements,

including the provision of public clinic equipment, incentives
for a clinic helper, training for traditional healers, and
medication and dental check-ups for students.
Other CSR program initiatives include the construction and
renovation of schools, churches and mosques, clean water
supplies, roads, houses for low income families, fencing and
electricity.

Economic Contribution
h

Since commencing production in 1999, the Gosowong mine

has contributed over US$550 million in taxes, royalties and
duties to the Indonesian economy.

Supporting Local Businesses

In fiscal year ending June 2013, around US$13 million worth of
contracts were awarded by PTNHM to local business. It is a
mark of progress made by the joint efforts of local businesses
and PTNHM that there has been a steady increase in the share
of contracts going to local, provincial and national businesses
over the life of the mine.

Local Employment
The Gosowong mine directly employs around 700 people from
the North Maluku Province. The total value of wages
contributed into the local economy from employment with the
mine is around 10.7 billion Rupiah per month.

Contact: Herastuti Haryogyo - Communications Manager | herastutih@nhm.co.id

www.nhm.co.id