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Although Dutch explorers sampled the nickel laterite near Lake Matano on Sulawesi Island in the early 1900s, it was not until 1968 that PT Inco officially began operations in Indonesia. That was the year our subsidiary PT Inco signed a Contract of Work agreement with the Indonesian government that granted us mining rights in the provinces of South, Southeast and Central Sulawesi.
Investing in the Community
For more than 35 years, PT Inco has been committed to providing support to help people in their daily lives and improving the standard of living in the communities where we operate in Indonesia.
Under our Contract of Work agreement signed initially in 1968 and amended and extended in 1996, PT Inco has made a significant contribution to the Indonesian economy through the payment of royalties, water levy, land rent and taxes and by the purchasing of supplies, services and equipment from other Indonesian companies.
As part of our commitment to ensuring that as many Indonesians as possible benefit from the country's rich resource heritage, PT Inco made a public offering of 20 per cent of our shares in 1990 in Indonesia to enable them to become PT Inco shareholders. Today, nearly 12 per cent of our PT Inco public shareholders are residents of Indonesia. More than 15 per cent of our employees own shares of PT Inco.
In carrying out our business, PT Inco and our subcontractors utilize Indonesian services, raw materials produced from Indonesian sources and Indonesian-manufactured products to the extent such services, materials and products are available on a competitive time, cost and quality basis.
Community Involvement
Health
Improving health care among local residents has long been a priority for PT Inco. To achieve that goal, we have built a 42 bed hospital and medical clinics in Sorowako and a number of surrounding villages. PT Inco hospital has been providing medical services to our employees in the Sorowako area since we began our Indonesian operations in 1968. The hospital program includes community and regional medical programs and presently employs five doctors and 52 nurses. The hospital provides medical services to members of the public in addition to employees and their dependants.Traditionally, the company has provided free medical examinations and treatment to all natives of Sorowako who are in financial need. Others receive discounts of 25 to 75 per cent on health care costs.
Education
PT Inco has made education and training a focus of our community involvement in Indonesia. We have built and operated through our Sorowako education foundation two kindergartens, two elementary schools, a junior high school and a senior high school in Sorowako. We have also built a junior high school building in Central Sulawesi. We have assisted the government in building public schools in the neighbouring communities of Wasuponda and Wawondula and a new senior high school in Malino. As well, we have helped to build a teacher training centre at Wasuponda. On an ongoing basis, PT Inco has provided financial support to education including salary enhancements to teachers and has endowed a series of scholarships at several post-secondary institutions in Sulawesi. Today, there are 2,000 students and 120 teachers in the school system sponsored and built by PT Inco, which has graduated 1,800 students from the senior high school in Sorowako since 1985.
Agriculture and Infrastructure
PT Inco has sponsored agricultural counseling designed to improve crop production for local farmers. Our contribution has helped to make the district not only self-sufficient in rice but also a rice exporter. Other programs include soil study, crop diversification and animal husbandry.
PT Inco has also funded additional infrastructure development including five megawatts of power to the local community through PLN, a state-owned power company. We also provide roads, an airport and seaport, places of worship, sports facilities, water and sewage treatment facilities, TV relay stations and community centres.
The company has long been an active supporter of local cultural traditions and on an ongoing basis sponsors traditional dance and music festivals at the district, regional and provincial levels.
Environment
Protecting the environment is a priority for PT Inco. We have made some significant environmental improvements but there is more work to be done. Among the areas of progress, we have lowered dust emissions from the PT Inco plant by 79 per cent between 1992 and 2002. And, we have initiated programs to design and install new technology that will further reduce dust. We have revegetated about 700 hectares in former mining locations.
For more detailed information about our environmental and social performance at PT Inco, please see our latest Good Neighbours Report on Health, Safety, Environment and Community.
© Vale Inco 2007
Last Updated: November 28, 2007
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